Film Production and Distribution in the Era of Digital Consumption: A Case Study on Nordisk Film and Its Business Model Innovation

Paolo Maria Sacco & Francesco Turri

Student thesis: Master thesis

Abstract

The thesis aims at understanding how a Danish film production company should modify its business model in order to adapt to a transforming environment. Technological innovation, combined with innovated business models of distribution companies, has radically changed the way in which the audience consumes films. As a matter of fact, in the last decade there was a shift from physical DVDs to digital video on demand services, which completely revolutionized the film industry, also affecting the business of traditional TV broadcasters.
We conducted a case study on the company Nordisk Film A/S in order to understand how certain aspects of the business model of a movie production company should be adapted in order to successfully operate in the new environment. Theories on the Business Model Canvas and on the Long Tail strategy were used as a framework to conduct our study.
We collected qualitative data through semi-structured interviews at Nordisk Film managers and producers; three managers of other Danish film production companies were also interviewed to support the data collected at Nordisk Film. Through the analysis of the data collected, we discovered that film production companies should strategically change their B2B customers and we identified in which kind of companies they should focus their sales.
An opportunity offered by the new digital environment is that production companies now can improve their direct relationship with the audience. They can better communicate with them, adapt the content to satisfy a shift in tastes and sell directly to them by creating a digital platform. We also analyzed how the cost structure and revenue streams are affected. Furthermore, we discovered that production companies should take advantage of technological innovation in order to increase their profits in the long tail. Finally, we used the AVAC framework in order to verify the effectiveness of the new strategy and changed business model.

EducationsMSocSc in Management of Creative Business Processes , (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2020
Number of pages289
SupervisorsHenrik Johannsen Duus