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 Film value chain and innovation

Financing a film is in many ways the most difficult part of the process, and is certainly very complex. You’ve learned about some of the sources of finance, including private and public, and how this affects film’s cultural elements.

Maximising returns from adoption of digital models involves a number of new activities within the film value chain. These include early stage investment in audience engagement activities, such as building a buzz on social media (built into production budgets) and handover of some marketing control and data by the distributor to the producer.

Policy initiatives in the UK have explored the structural financial complexities of setting up similar, permanent joint ventures between producers and distributors. See the further reading section for information on the BFI joint venture scheme.

The value chain when viewed from an innovation perspective presents a sequential, three-phase process: idea generation, idea development, and the diffusion of developed concepts. Across all the phases, the creative film team must perform six critical tasks: internal sourcing, cross-unit sourcing, external sourcing, selection, development, and company-wide spread of the idea (Hansen and Birkinshaw, 2007). Each is a link in the chain.

To ensure the best value in a project, you need to take an end-to-end view of innovation efforts. To improve innovation and creativity, decision makers need to view the process of transforming ideas into commercial outputs as an integrated flow – rather like Michael Porter’s value chain for transforming raw materials into finished goods.

Coming up in Week 5

Next week you’ll see how all of this comes together, and how the film eventually gets produced. Go to Week 5 [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