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How have technological advances within distribution and governmental incentives influenced the competitive nature of film and content production?

Oral examination 1st Semester Project. OIM-CPH-MM24-01-2017

Aalborg University CPH

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Key findings & reflections

Agenda

Reflection and assessment of the project’s quality

Reflections over new perspectives and future research.

Proposed Suggestions

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How have technological advances within distribution and

governmental incentives influenced the competitive nature of film and

content production?Audhild Haugeberg

Literature Review

Simon Olsen

Aldo Chavez Sofie Krog

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Clustering

Fiscal Crisis

Spillovers

Distribution

Key choices

Literature Review

• Benefits

• Uncertainties & Life Cycle

• Compare to the Danish/Hollywood model• Understand the role of the state/private investors

Clustering

• Clustering and how Hollywood comprehended

• Amsterdam focus on medium/low budget

Fiscal Crisis

• The effects

• Why not Copenhagen ?

• The HQ

Why Amsterdam/Netflix ?.

Theoretical Framework

How have technological advances within distribution andgovernmental incentives influenced the competitive nature of filmand content production in Amsterdam?

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Spillovers

• Naivety from theories• Creation of effects and

competition

• New Technology

• Danger?

• Different use of theories for m/I-budget?

• New tech and distribution pushing traditional

• Dutch industry affected?

• Power of conglomerates and need of attention

Distribution

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Literature ReviewTheoretical Framework

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Other Factors

• Weightless economy• Numeric data

• Other forms of distribution?

Hybrids

• Need of hybrids?• What are hybrids according to

Christopherson?• How are we using the term hybrids?• How important are they in

Amsterdam?

Literature Review

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• Cooperation and collaboration are the corner stone of the competitive nature within the generalculture in Amsterdam• There is no elbowing out the competition and there is no desire not to work with others.

• It was discovered that the clustered industry in Amsterdam benefits from healthy competition by;• Sharing knowledge• Human resources.

• Competitive nature in Amsterdam is influenced by changes in technology (SVOD).• It was found that the competitive environment in Amsterdam will change due to the rapid

development technological distribution (SVOD) that MNEs (Netflix) are creating.• The Amsterdam government helps businesses start up (entrepreneur fund) not looking to sustain

them, as they prefer to have the ecosystem in constant movement. Government also serve asintermediaries for MNEs. attract foreign MNEs

• Our findings uncovered that the tax incentives are not the main reason companies move/produce inAmsterdam.

• Through our research a new film fund scheme was uncovered called; The London Microwave.

Key Findings & ResultsHow have technological advances within distribution andgovernmental incentives influenced the competitive nature of filmand content production in Amsterdam?

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• Companies due however find that hard and soft factors are importantdeterminants.• Hard factors: infrastructure, ICT, transportation, governmental

incentives, etc.• Soft factors: quality of life, multicultural diverse labor force.

• Film Fund which is provided by the Government, is resulting in firmsproducing unoriginal content.

• Spillovers (knowledge & resources) are not negatively viewed amongst firms.• Emerging technology (SVOD) has opened up more opportunities within the

industry for firms to create more diverse content that could be sold off.• Initially our focus was directed towards the influence of MNEs in Amsterdam

within the film and content industry.• EU law (20% production) will give way for more content production.

Key Findings & Results

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• Did not consider other factors beyond the government and tech. advances, such as: • Broadcasters• Exhibitors • Education sector

• Firms seek alternative means to funds by working outside the film industry.

• Initially we focused on Netflix and how they influenced the industry in Amsterdam. We could have been more in-depth in investigating the new production and distribution phenomenon that is coming about due to the new emerging tech. advances. (we steered away because it was very difficult to contact Netflix)

• Very focused on the film fund/government, not took into account private investors, post funds.

Possible Alternative Research Questions

• Film and content distribution methods, promoted by emerging technologies developed by influential MNEs.

• What is influencing the competitive nature amongst small-medium sized film production companies within clusters in metropolitan areas? And the influencing technological factors that influence the distribution of content?

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Reflections on key findings

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G r o u p S i z e

Having a 4 persons group

Time consuming processes

T i m e M a n a g e m e n t

Challenges when balancing professional life and project

work

C u l t u r e / A c a d e m i c B a c k g r o u n d s

Challenges when adapting to new academic requirement

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Challenges

G r o u p C h a l l e n g e s

Group dynamics

Finding / agreeing on a research questionLack of experience making larger projects

10Reflection and assessment of the project’s quality There were several factors in our project that determined the quality – here are some of our key reflections

• Choose small-medium size companies within the same industry

• Work with companies in Amsterdam• Could have considered multiple • Embedded case study

Reflections

• Single holistic case study

• Exploratory

• Five small-medium sized companies within film and content production

• Two governmental representatives from foreign investments and film production

Methods

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S A M P L I N G• Non-probability sample

technique• Volunteer sampling and

Snowball effect

R E F L E C T I O N S• Very small sample size• Use of probability sample

method

Sample Selected

Film Production Companies

Your Majesty

Kasper KuijpersPartner

Amsterdam Production

Services

John TrapmanOwner

Mr. Frank

Miguel TeixeiraOwner

Revolver

Klaudia Gainza & Marteen Van Doommalen

Executive Producers

Fonk Films

Kasper van BeekProducer

Government

Annelies in’tVeld

Simon BresterFilm Comissioner

Jasper KraijeveldPrivate Sector

Secretary

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Sampling of Interviews

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• How could it be done in our case?

• Combine a qualitative analysis with a survey.

• Why did we not use a quantitative method?

REFLECTION

DATA

• Used Qualitative method

• Would benefit from using mixed methodsLonger time to analyse –needs more resources, time, people

Results can be biased

Longer & deeper questions

Rich, complex explanations

Hard to follow up and clarifymisunderstandingsRelatively easy to implement

Data retrieval (data will not bePresented in a structure way and ambiguity may occur)

Discovering ideas that were not anticipated

Qualitative Methods

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Data

13High Credibility?

• More methods (triangulation)

• Validate with respondents

• Few variables

• Methods can be replicated

• Results can be the same in similar industries (in Europe)

Saunders book say; there is no way of measuring the credibility of a qualitative project.However, we used quantitative measurement of reliability and validity • Interviewing both sides • Open ended and clear questions • Nuanced questions natural, positive and negative • Several researcher

C R E D E B I L I T Y

R E F L E C T I O N

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• Risk of China taking over the market

• Microwave projects – skills - boot camp - more talent with multiple skillsets –less talent needed to cover the positions – funding to those involved

• Merging of industries within creative businesses –hybrid

• Less need for a set location – global - intermediated communication

• Governments and private investors must create more incentivesto make the creative industries stay (hard factors)

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Future ExpectationAnd changes in the industry

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• Cheaper equipment – supplier perspective

• Less need for exhibitors if they do not innovate (Virtual Reality, Augmented Reality, hologram, “4D”, themes, being bought up) - weightless economy - distribution

• Many ways to earn and get funding for the movies - public/private broadcasters, other distributors, exhibitors, funds

• Ambidextrous business strategy – explore and exploit

• Avoid illegal downloading – cheaper, higher quality alternatives

Creative team:Directors,Producers,

Scriptwriters

Film School

SupportCompanies

ProductionCompanies

Filmfund

Distributors:Netflix, HBO,

iTunes

Privatebroadcaster

Exhibitors

PublicBroadcaster

Private SectorPublic Sector

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Film and Media Operations

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Short attention span -captivate attention –

immersion, absorption and flow

Consumer in focus –Generation Y and Z

More technology -Videogames, AR, VR, CGR –

post production

Shorter material - original content – series

Education – more focus on what the consumer wants

The consumer might not be interested in ”normal” educational TV and prefer other

alternatives SVOD brings – risk management

Innovation and consumer behaviour

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What could happen to the content ?

Immersive, interactive storytelling through virtual

reality - more need to innovation in cinemas and education in

moviemaking

Lower entry cost for independent filmmakers, platforms for sharing

content - less need for studios – can create them virtually, less costly to

produce

S T O R Y T E L L I N G P R O D U C T I O N C O S T S

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Proposed Solut ion

Invest in educational programs –to give the talent and

production Companies more skillsets – hybrid behaviour

(Microwave London)

I n v e s t m e n tLearn how to create movies that are high quality but low budget

and they learn how to market and distribute, with the help of

government

A d a p t a b i l i t yNo fear for global

conglomerates – companies will not be outcompeted

C o n g l o m e r a t e sSimilarities to the Danish model (film school, film institute (fund) , broadcasters other distributors) - focus on the director, producer

and scriptwriter

S i m i l a r i t i e s

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Proposed Solut ion

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Stronger competitive advantages in regards to domination MNEs and

conglomerates

Programs (similar to

Microwave)

Strongerlabour force

(hybrids)

Filmfondsand the film

school investment

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Thank YouHow have technological advances within distribution

and governmental incentives influenced the competitive nature of film and content production?

Oral examination 1st Semester Project. OIM-CPH-MM24-01-2017

Aalborg University CPH