Film Value Chain Analysis

The Film Value Chain

Introduction:

A value chain can be seen as a series of connected activities combined to create and deliver a product to the customers. These activities include research and development of the market, manufacturing of the product, its packaging, then marketing, and distribution of the product.

A value chain represents activities which can be carried out within a single company, whereas a value system represents activities being carried out by a series of different businesses acting together to create and deliver a product.

In case of a feature film/movie; it is not just made and delivered to its final audience by a single company instead there is a chain of companies and businesses all working on different elements

In case of distributor, this could be done as a collector’s edition; where the producer would release a director’s cut. These events generally occur on the tenth or twentieth year anniversaries of the film’s initial release.
Library rights also contain the rights to sequels, prequels or remakes. These rights are held by the producer and sometimes by the financiers and are not granted to the distributors. Today, sequels and remakes are becoming more common due to the fact that investors will fund these types of film. The reason being less risk, since the concept behind the film has already been put on the market. The investors can get an accurate estimate of how the next new film will perform, by looking at previous films from the series.

Limitations of the film value chain model:
A value chain model for the film industry also has several limitations like-:
• Inability to represent the importance of reputation and personal relationships;
• timescale;
• the levels of investment and return at different stages.

There are new methods of transporting and downloading them from device to device which include high speed home broadband connections, Wi-Fi networks, chips, cards, ultra portable hard drives, and new high capacity memory sticks. It is also possible that providers of the technology like cinema owners and chains, pay-TV operators and even video game operators, to become involved in generating and delivering content, thus operating at different points along the