The business of film
The business of film

Start this free course now. Just create an account and sign in. Enrol and complete the course for a free statement of participation or digital badge if available.

Free course

The business of film

5 Culture, economy, value and power

This week you have explored how the film industry has both economic and cultural value and how it is also part of the creative industries.

Described image
Figure 9 Reels and 16mm film stock

As you have seen, while film provides a service that can be bought and sold in the marketplace, it also provides value in terms of cultural benefits, which may be social or symbolic.

Public policy plays an important role in the film industry, particularly in markets outside the US. You’ve examined the concept of the value chain in the business of film and you’ve seen who the key holders of power are.

You have looked at the concepts of power and bargaining power. From the wider business perspective, this concept is addressed by Michael Porter’s five forces framework for industry analysis (Porter, 1979). This framework was originally developed to assess the attractiveness (profit potential) of different industries. The five forces make up an industry’s structure:

  • the threat of entry into an industry
  • the threat of substitutes to the industry’s products or services
  • the power of buyers of the industry’s products or services
  • the power of suppliers into the industry
  • the extent of rivalry between competitors in the industry.

Talent can be seen as being in the supplier position as they are supplying the industry with the product or service it needs. Buyers are those paying for the talent, including the distributors.

The five forces framework can provide useful insight into the powers at play in the film industry. Your analysis of the industry throughout this course may well prompt many questions about the implications of these forces.

Coming up in Week 2

Next week you are going to take a look at the development process, the process that takes an idea for a story and turns it into a valuable film project worth investing in. You'll focus on what happens right at the very beginning of the value chain and meet some of the key players. Go to Week 2 [Tip: hold Ctrl and click a link to open it in a new tab. (Hide tip)] .

OUFL_1010

Take your learning further

Making the decision to study can be a big step, which is why you'll want a trusted University. The Open University has 50 years’ experience delivering flexible learning and 170,000 students are studying with us right now. Take a look at all Open University courses.

If you are new to University-level study, we offer two introductory routes to our qualifications. You could either choose to start with an Access module, or a module which allows you to count your previous learning towards an Open University qualification. Read our guide on Where to take your learning next for more information.

Not ready for formal University study? Then browse over 1000 free courses on OpenLearn and sign up to our newsletter to hear about new free courses as they are released.

Every year, thousands of students decide to study with The Open University. With over 120 qualifications, we’ve got the right course for you.

Request an Open University prospectus371