Online independent film distribution : what is missing?

Abstract

This thesis proposes a new model for online platforms for independent films. Today, platforms such as Netflix, iTunes, and YouTube are in the face of major industry challenges: more competitors are entering the market; consumers are demanding more diverse content and higher quality service; and cost of content acquisition keeps increasing. In addition, the independent film industry has a fragmented value chain, which makes it challenging for filmmakers to fund and distribute their films. By applying the platforms framework proposed by Prof. Annabelle Gawer, as well as the "coring and tipping" strategy outlined by Prof. Gawer and Prof. Cusumano, the analysis in this paper shows that a company can become a platform leader by integrating two sides of the value chain: distribution and funding. This strategy will incentivize filmmakers and distributors to use the platform instead of competitors; and it will solve the problem of industry fragmentation. This model can also give the platform access to new data on its consumers' preferences; and enable it to acquire films in its early stages at a lower cost.