Facing Disruption: The Cinema Value Chain in the Digital Age.

Academic Journal

Salvador, Elisa | Simon, Jean-Paul | Benghozi, Pierre-Jean

Cultural and creative industries (CCIs) are based on a capacity for innovation. Yet recent technological dynamics support disruptive ways to devise, deploy and create value from innovation. Whereas most of the literature addresses the disruptive changes in consumer practices and the business models of CCIs, this study investigates how disruptive technologies are challenging the organization and value chain of the cinema industry. Such transformations are supported by a multilayered evolution driven by technological middlemen, industrial partnerships and information technology infrastructure. First, most of the observed changes are driven by actors emerging outside CCIs, while the traditional players in these industries are investing less in R&D and technology. Second, these new players, usually specialized technological suppliers (STSs), are building their position by using their technological expertise to serve the creative dimension of cultural works. The authors make several observations about the role of these STSs and that of new industrial partnerships. Last, the growing importance of information and communication technologies and of online networks ascribes a key role to technological infrastructure and platform leadership. This multilayered influence leads to a reconfiguration of the traditional business ecosystem and value chain of the cinema industry. It also questions the current role of public intervention. In particular, one wonders whether this new environment calls for an alternative policy to the traditional silo financing (i.e., partitioning the regulation and financial support for each subsector of CCIs) that has thus far dominated. [ABSTRACT FROM AUTHOR]