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Competitive Nature of Film Production and Distribution: A Case Study on the Film Industry in Amsterdam
1. 1
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-MM
24-01-2017
Aalborg University CPH
2. 2
Key findings &
reflections
Agenda
Reflection and assessment of
the project’s quality
Reflections over new perspectives
and future research.
Proposed Suggestions
2
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
3. 3
3
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 and
governmental incentives influenced the competitive nature of film
and content production in Amsterdam?
4. 4
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
4
Literature Review
Theoretical Framework
5. 5
4
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
5
6. 6
• Cooperation and collaboration are the corner stone of the competitive nature within the general
culture 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 as
intermediaries for MNEs. attract foreign MNEs
• Our findings uncovered that the tax incentives are not the main reason companies move/produce in
Amsterdam.
• Through our research a new film fund scheme was uncovered called; The London Microwave.
Key Findings & Results How have technological advances within distribution and
governmental incentives influenced the competitive nature of film
and content production in Amsterdam?
6
7. 7
• Companies due however find that hard and soft factors are important
determinants.
• 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 firms
producing 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
7
8. 8
• 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?
8
Reflections on key findings
9. 9
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
9
Challenges
G r o u p C h a l l e n g e s
Group dynamics
Finding / agreeing on a
research question
Lack of experience making
larger projects
10. 10
Reflection 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
10
11. 11
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 Kuijpers
Partner
Amsterdam
Production
Services
John Trapman
Owner
Mr. Frank
Miguel Teixeira
Owner
Revolver
Klaudia Gainza &
Marteen Van
Doommalen
Executive Producers
Fonk Films
Kasper van Beek
Producer
Government
Annelies in’t
Veld
Simon Brester
Film Comissioner
Jasper Kraijeveld
Private Sector
Secretary
11
Sampling of Interviews
12. 12
• 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 methods
Longer time to analyse –
needs more resources, time,
people
Results can be biased
Longer & deeper questions
Rich, complex explanations
Hard to follow up and clarify
misunderstandings
Relatively easy to implement
Data retrieval (data will not be
Presented in a structure way and
ambiguity may occur)
Discovering ideas that were not
anticipated
Qualitative Methods
12
Data
13. 13
High 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
13
14. 14
• 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 incentives
to make the creative industries stay (hard factors)
14
Future Expectation
And changes in the industry
15. 15
• 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
Support
Companies
Production
Companies
Filmfund
Distributors:
Netflix, HBO,
iTunes
Private
broadcaster
Exhibitors
Public
Broadcaster
Private Sector
Public Sector
15
Film and Media Operations
16. 16
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
16
17. 17
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
17
18. 18
Proposed Solution
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 t
Learn 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 y
No fear for global
conglomerates – companies will
not be outcompeted
C o n g l o m e r a t e s
Similarities 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
18
19. 19
Proposed Solution
19
Stronger competitive advantages in
regards to domination MNEs and
conglomerates
Programs
(similar to
Microwave)
Stronger
labour
force
(hybrids)
Filmfonds
and the film
school
investment
20. 20
Thank You
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-MM
24-01-2017
Aalborg University CPH