Group MembersSAJITHA ADIKARI HD-UGC- 102002LALINDRA DE SILVA HD-UGC- 102016NISAL DHARMADASA HD-UGC- 102021AYESHA FERNANDO HD-UGC- 102027SACHINI PERERA HD-UGC- 102067SEWMINI HD-UGC- 102070RATNAYAKA
Macro Environment Of Film Industry in Sri Lanka The major external and uncontrollable factors that influence an organization‟s decision making, and affect its performance and strategies. A PESTEL Analysis is undertaken to understand the dynamics of the external environment which the film industry operates in. These factors include the Political ,Economic, Socio- Cultural, Technological, Ecological and Legal environment.
P olitical Environment L egal E conomical EnvironmentEnvironmentE cological S ocio Cultural EnvironmentEnvironment T echnological Environment
Sri Lankan Film Industry was established in 1947 with “ Kadawnu Poronduwa” produced by S.M. Navagam of Chira Kala move tone. The pioneer director Lester James Peris was the first Sinhala film director who shot his first film completely out of the studio “Rekava” in 1956 During the 1970 several valuable films came to the film industry, such as Gamperaliya, Nidhanaya, Gaga addara, Prasathumal and Kaliugaya. In the recent years, the film producers such as Wasantha Obesekara, Darmasena Pathiraja, Tissa Abesekara, Prasanna Vithanage and Asoka Hadagama were become the leader in the film industry Today, film industry produced by classical films and commercial films. Most of the Sri Lankan films were participated by International film festival and won the more awards.
The Political environment consists of laws, government agencies and pressure groups that influence or limit various organizations and individuals in a given society. Marketers must keenly follow the changing sociopolitical environment of the world in order to seek out opportunities and to address potential threats. Political stability is one of the fundamental aspects for any industry‟s success and growth. With the end of terrorism in Sri Lanka, the North and East areas opened up. The government should take action to build cinema halls to help develop the industry for the Tamil community. This is a new audience which Sri Lankan Tamil directors can make films for. Thus, the government should take initiative to develop the industry in the North. With the positive economic growth (8%) in the country there is clear potential for the film industry to grow and prosper. But, it is hard to achieve its potential without funding and support from the political arena.
Sri Lanka has many undiscovered beautiful locations and these can be marketed for foreign productions. It is also advantageous for foreign films to shoot in Sri Lanka because it is less costly. However, if Sri Lanka intends to earn an income and learn through foreign productions, it is the government‟s responsibility to see that Sri Lanka maintains a good global reputation by maintaining a stabilized political environment.
Politics should not interfere with the screening of films. For example, some movies which are done by people related to politics screen their films without giving consideration to the lineup of films. The treats are minimal as long as keep everyone satisfied.
The totality of economic factors, such as employment, income, inflation, interest rate, productivity, and wealth, that influence the buying behavior of consumers and institutions.Latest changes in Economic Environment of Sri Lankan Film industry Sri Lankan government got more benefits by the IIFA film festival Attracting more foreigners Increased amount of foreign exchange Starting new business To develop their business relationship and friendship To improve the infrastructure in Colombo city To get more investment opportunities in Sri Lanka film industry The Sri Lankan enterprises can be take our cinema to international heights and that is why the President has formulated tax benefits to elevate the national cinema to enter into the global film market.
lack of finances for producing films National Film Corporation did not support the film directors continually. To destroyed many theaters during the war. No restored print film center in Sri Lanka. Most local films were not recognize the internationally. Most of film directors are using foreign actors their films. To paid large advertising expenses. No film academy establish in Sri Lanka.
The Cultural environment is made up of institutions and other forces that affect a society‟s basic values, perceptions, preferences, and behaviors. Socio-Cultural environment based on 3 components. Those are : Social Environment Cultural Environment Demographic Environment The culture of Sri Lanka dates back over 2500 years. It is influenced primarily by Buddhism and Hinduism. According to Islamic folklore, Adam and Eve were offered refuge on the island as solace for their expulsion from the Garden of Eden. The island is the home to two main traditional cultures: the Sinhalese (centered in the ancient cities of Kandy and Anuradhapura) and the Tamil (cantered in the city of Jaffna).
Increasing film halls in Sri Lanka. Increasing demand for elders only films and family films Most of the films target Sri Lankan younger generation. To issuing different price of tickets on people‟s income. To developing most of the facilities in film hall To making various type of films. Cultural change in third generation. Review of the darkest periods in the contemporary history of Sri Lanka . ethnic war, which has been around for decades. Increasing ageing population Lifestyles are modern and fast paced. Increase number of higher education institutes. Increased Tamil population Tourism has taken a sharp rise in the country. Women are employed more than ever. The young generation gives priority to work, and marriage is postponed. Many Sri Lankans are migrating back to Sri Lanka.
The demographic factors of the market in which an organization operates , and which are used to segment the target population for effective marketing. Demographic bases of market segmentation Age structure Gender Income Family size & Family life cycle Occupation Education Social class Region and Race Nationality
Modernization were presented in culture specific terms, often very crudely. Ideas of socialism, youth unrest, problems of unemployment, alienation of youth, which were all inevitable concomitants of the modernization process, found cultural expression. The ferocity of the ethnic conflict and its impact on, and implications for, the state, civil society, rule of law and soon began to be explored in terms of the vocabulary of local culture. Most Sri Lankan people move to the watch foreign films Not increasing the Tamil Film Industry in Sri Lanka The high increase of mega Tele-dramas.
External factors in technology that impact business operations. Changes in technology affect how a company will do business. A business may have to dramatically change their operating strategy as a result of changes in the technological environment. New technology creates new markets and opportunities. However, every new technology replaces an older technology. As an example, CDs hurt phonograph records, and digital photography hurt the film business.
•DigitalCinema -The age of filmless film has arrived.•Sri Lankan movie industry take the cue from India•Using 3D Technology•Trends in technology of format and Film Stock,Cameras and Lenses, Lighting, Sound, Editing andVisual Effects, Cameras, Audio•To using most effective Lighting, Sound, Editingand Visual effects. Eg: Abba film
•Most of Sri Lankan Films were not exposed internationally.•Coming up bad copies to the market.•digital cinema at home at near-identical resolution•There are movies on demand over cable TV, compressed digitalfilms, and DVDs in the mail.•The lack of facilities and technology•There are movies on demand over cable TV, compressed digital films, and DVDs in the mail.
The natural Environment involves climate, weather and the natural resources that affected by marketing activities and economic activities. Sri Lanka offers wide variety of locations, the cultural heritage the diverse people and the scenic beauty, draws Film makers to shoot in Sri Lanka and above all the Sri Lankan Hospitality.Naturalists say Sri Lanka is one of the easiest places in the world to spot whales because whales come very close to the shore.
Movie makers eye Sri Lankan locations Highlights•To using wild screen for their films•Foreign films used many Sri Lankan film•location Eg: Water Film, Mother Theresa
Sri Lanka has many natural locations:Natural beachesWater fallsMountains & plainsRural villageRiversWild lifeSky scrapers
Sri Lankan film producers used natural locations Eg: Sooriya Arana Film International production companies like to using Sri Lankan location such as natural beaches rural villages rivers and wild life. As a result Sri Lankan can earn more profits and income for these films
Movie makers do not care about natural environment Every production impacts of the environment. As an example: When foreign (Bollywood and Hollywood) Movie producers use high technology to their productions, so it‟s harm to our natural environment.
In recent years in Sri Lanka there have been manysignificant legal changes that have affected the industry‟sbehavior. The introduction of age discrimination anddisability discrimination legislation and an increase in theminimum wage are examples of relatively recent laws thataffect an industrys actions.Screening of movies has to obtain prior permission fromthe board of control for screening in movies of Sri Lanka.
Latest Changes•Minister given powers to intervene and stop screening.Opportunities•High standard good quality productions done ethically.•A solid legal environment ensures that the industry isstable.•Consequently, a sound legal system reflectsprofessionalism in the industry.•To silence certain unbiased accusations.
Product The „product‟ here is the films. The Film Cooperation with the governmentshould take care to see that directors, producers are given necessary funding andencouragement to produce/direct quality films.PriceMarketers should price the ticketsaccording to demographic areas the film halls are situated in and according tothe facilities of the cinema hall.
PlaceThe cinema halls (place) are extremelyimportant to the industry because this is wherethe films (product) are delivered to theaudience. Promotion Promotion or the ways of communication to the target market is crucial if the producers want to get back a profit.
A Pestle Analysis is undertaken to understand thedynamics of the External Environment, which the FilmIndustry operates in. While these factors are out of theindustry‟s control, the industry needs to be aware of themto adapt it self to avoid the Threats and exploit theOpportunities in the environment.
The The external environment Impact on the industryEnvironment The political environment is A stabilized political system is good considerably stabilized . news for all. Government imposes tough As a result, the cost cannot be covered. rules and regulations andPolitical charge 48% off the filmsEnvironment income. The opening up of North and In the film industry there are ore East areas. confident of planning long term strategies. The opening of North & East has given the film industry the attractive opportunity of conquering that virgin market and of stabilizing their industry position through out the island. It’s the Government’s Foreign exchange coming in to the responsibility to maintain a country. good global reputation for foreign productions.
A lot of development projects The development projects taking place are going on across the country. throughout most rural areas have been creating a steady flow of money in the usually laid back markets. There is plenty of opportunity for the film industry to strengthen their profits by concentrating on marketing campaigns in these areas.Economical Lower interest rates have lured The lucrative economy (bull market)Environment international players to the prevailing in Sri Lanka has been luring market investors. This poses threats as well as opportunities to the film industry as more financially stronger companies enter and compete for a share of the film industry. Crisis period has not yet settled Price hikes results in resource constraints down. for the film industry as the camera is the main tool Opportunities came with IIFA IIFA would give many economic benefits directly as well as indirectly
Women are employed more Research shows women act more than men do, than ever. thus the trend of working women is positive for the industry. Increasing ageing population. -film industry has the opportunity to venture into new Segments and fill up a gap in the market for the elderly population.Socio-cultural and Lifestyles are modern and fast Demand for short films is on the rise as a resultDemographic paced of modern day lifestylesEnvironment Tourism has taken a sharp rise. The tourist boom can be made handy to market made in Sri Lank a productions to the international arena. The young generation gives - A population with a new taste palette too is on priority to work, and marriage the rise, giving the film industry a reason to is postponed widen their production portfolio.
Investors have been introducing The continuous introduction of modern latest technology into Sri Lanka technology in the industry facilitates the during the last few months. film’s to keep a breast with the international film’s Technology is being obsolete at Trends and operations. a mind-blowing rate. There seems to be almost The film industry owes it for technologyTechnological for their undisputed standards of qualityEnvironment unlimited opportunities being and productions. developed daily. Consider the expanding fields of health care, the space shuttle, robotics, and biogenetic industries. New technology creates new However, every new technology replaces an markets older technology. As an example, CDs hurt and opportunities. phonograph records, and digital photography hurt the film Coming up bad copies to the Unfortunately, the SIFF screenings were in market BETA format and were very bad copies. They have not a single reprint of a film. In addition, locals are ignored and lose opportunities
- Concern for the protection of Environmental standard certificates are required environment has been on the rise. when exporting films for foreign countries. (Environmental Management Systems (EMS)) Floods have disrupted daily life in The demand for films can both increase and few parts of the country. decrease during times of crises. Relief support groups tends to produce films for a cause to fund the flood victims. And when victims are unable toEcological go and watch a film clearly, the demand in the areaEnvironment significantly goes down Low cost budget when shooting As a result local locations are exposed and Sri a film in local locations Lank a’s natural beauty has got lots of accolades and awards major opportunity of wild screen knowledge and a whole lot of benefits come in to come to here. the local scene and to the boom and betterment of the film industry in Sri Lanka movie makers don’t care about This is a high impact industry where there is a the environment. perception that filmmakers do not care about the environment every production impacts on the In the studio and on location, work consumes environment large amounts of energy and natural resources. They generate waste and sound pollution.
Legal factors have an effect on both - Environmental regulations for production and employment operations. filming. Systems have to be either altered or even created to meet the regulatory demands and the film industry would have to bear a considerable cost if changing the usual way ofLegal Disability Discrimination The demand for quality standards givesEnvironment Legislation. only a few productions a competitive advantage as they already adhere to most highest standards. Film Act of Sri Lanka Certain certificates have to be obtained when exporting films. High standard good quality International recognition can be gained by productions done ethically through high quality productions done in the highest possible way. Good productions come out Establishing a solid legal entity to look into as a result of a strong legal background within the matters in the film industry. industry
Well conceived regulation can encourage completion and ensure fair productions ,thus To prevent petitions Or motions. governments develop public policy to guide commerce sets of laws and regulations that limit business or production to the of society as a whole. Copyright and Intellectual The producer will be very conscious and Property: In order to secure organized with regard to intellectual meaningful distribution for a property.Legal film, a producer must be able toEnvironment prove that he or she owns, or has a license to use, EVERY piece of intellectual property in the film. Original productions are when there is a solid legal foundation and preserved. background, more people are willing to help and get involved with the industry. To prevent from certain people Written regulations can not possibly cover all using the law unnecessary to potential production or marketing of films, sabotage the movie. beyond written laws and regulations, films are also governed by social codes and rules of To Silence unbiased accusations. professional ethics.
Considering the above PESTLE analysis, it is safe to say that the current situationof the External Environment is favorable to the film industry.But, all these positive factors (stabilized political situation, potential of theeconomy, advances in technology and the expansion of customer base) reflects thatcompetitors too will be lured to do commercial productions.Although the film industry is faced with opportunities to exploit, pressures fromcompetitors will be inevitable.In Conclusion we have discuss the key Macro Environmental Factors, theDefinions,Sri Lankan Context, the Opportunity‟s and Threats of the SWOT Analysiswhich are the External Factors, the Marketing Mix and their implications in the filmIndustry.There‟s a Compact Disk that we have attached with the report for further referencewhich depicts the 64 year old Sri Lankan Film Industry‟s History , the MacroEnvironment and an Exclusive video interview with the Leading film director Mr.Udayakantha Warnasuriya.There would be an In-Depth Analysis on the film industry in our Report.