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Albert Wenger of Union Square Ventures asks:
How then is journalism to be financed? As I wrote in 2014, I continue to believe that crowdfunding is the answer. Since then great progress has been made by Beaconreader, Kickstarter’s Journalism category, and also Patreon. Together the amounts are still small but it is early days. Apple’s decision to support these adblockers may well help accelerate the growth of crowdfunding and that would be a good thing – I don’t like slow page loads and distracting ads but I will happily support content creation directly (just highly unlikely to do so through micropayments while reading). All of this provides one more reason to support Universal Basic Income – a floor for every content creator and also more people who can participate in crowdfunding.
I've also heard Universal Basic Income argued for as a solution to funding open source projects. I'm not sure I buy it, so to speak - I think it's not fair to assume that content creators should live on a minimum safety net wage. I do strongly believe in a Universal Basic Income, but as a strong safety net that promotes economic growth rather than something designed to be relied on. For one thing, what happens if everyone falls back to a Universal Basic Income? Could the system withstand that, and would the correct incentives be in place?
I love the idea of crowdfunding content. This does seem to put incentives in the correct place. However, when systems like Patreon work well (and they often do), the line between crowdfunding and a subscription begins to blur. When you're paying me whenever I create content, with a monthly cap, and I create content on a regular basis, it starts to look a lot like it's just a monthly subscription. If you pick up enough monthly subscriptions, it starts to look like real money - a thousand people at $10 a month would lead to a very comfortable wage for a single content creator (even in San Francisco and New York).
So remove the complexity: recurring crowdfunding is just a subscription with a social interface. Which is fine. For recurring content like news sources and shows, I think subscriptions are the future.
For individual content like movies, albums and books, campaigns begin to make a lot of sense. But crowdfunding isn't magic: funders won't necessarily show up. I've been told that I should really have 33% of my campaign contributions pre-confirmed before the campaign begins, and I suspect that's not possible for most unknown artists.
There needs to be a positive signal of quality. In the old days, there were PR campaigns, which were paid for by record labels and publishing companies. Unless we only want rich artists and established brands to make money making content, we need a great, reliable way to discover new, high-quality independent media. And then we need to be able to make an informed decision whether we want tob buy.
As great as Patreon, Kickstarter, Indiegogo and the others are, we're not there yet. Social media won't get us there alone - at least not as is. But there's money to be made, and I'm convinced that whoever unlocks discovery will unlock the future of content on the web.
Image: Crowdfunding by Rocío Lara