Searle (2011)

From Copyright EVIDENCE

Advertising Architectural Publishing of books, periodicals and other publishing Programming and broadcasting Computer programming Computer consultancy Creative, arts and entertainment Cultural education

Film and motion pictures Sound recording and music publishing Photographic activities PR and communication Software publishing (including video games) Specialised design Television programmes Translation and interpretation

1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)? 3. Harmony of interest assumption between authors and publishers (creators and producers/investors) 4. Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption) 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

A. Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right) B. Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction) C. Mass digitisation/orphan works (non-use; extended collective licensing) D. Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability) E. Fair remuneration (levies; copyright contracts) F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Source Details

Searle (2011)
Title: Changing Business Models in the Creative Industries: The Cases of Television, Computer Games and Music
Author(s): Nicola Searle
Year: 2011
Citation: Searle, N., 2011. Changing Business Models in the Creative Industries: The cases of Television, Computer Games and Music. Computer Games and Music (August 5, 2011).
Link(s): Definitive , Open Access
Key Related Studies:
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About the Data
Data Description: This paper reports on the findings of qualitative research into business models comprising six case studies from 25 semi-structured interviews, participant observation and literature sources. The research incorporates a literature review to establish the business model methodology and analyse the current state of research.
Data Type: Primary and Secondary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: No
Comparative Study?: Yes
Literature review?: No
Government or policy study?: No
Time Period(s) of Collection:
Funder(s):
  • This research is an ESRC, AHRC and IPO funded research project in the form of a placement fellowship. The fellowship places the researcher (Dr. Searle) in the Economics, Research and Evidence Team at IPO offices in London. This work was supported by the Economic and Social Research Council (grant number RES-173- 27-0219). It occurred in conjunction with the Scottish Funding Council funded Moving Targets project.

Abstract

This paper examines the business model response to the change from analogue to digital in the creative industries. Looking at both traditional and emerging business models, the paper researches three sectors: television, computer games and music. A series of six case studies, two from each sector, provide illustrative cases of the business model response to challenges to enforcement of copyright and advent of digital.

This paper reports on the finds of qualitative research into business models comprising six case studies from 25 semi-structured interviews, participant observation and literature sources. The research incorporates a literature review to establish the business model methodology and analyse the current state of research. The research findings show that the creative industries are in a state of business model experimentation. Furthermore, the evidence suggests that the Intellectual Property framework may be secondary to other influences on business models.

Main Results of the Study

The six business model case studies provide a snapshot of the current state of business models in three key creative sectors: games, music and television. Collectively, the case studies suggest four main themes: IP, change, differences between sectors and the role of intermediaries. While IP was not often identified as a direct influence on business models, it has an important secondary role. A strong theme was that of change and the fast paced evolution of business models. However, this was tempered by significant differences between the business models of the three sectors. Finally, the role of intermediaries is changing and the evidence suggests that more change may come.

Policy Implications as Stated By Author

The three creative sectors surveyed in this research imply that the creative industries are far from reaching equilibrium in business models. Researchers and policy makers should expect further, rapid changes in business models as the technology evolves and content adapts. The case studies presented here evidence both disintermediation and intermediation. They do not support a dominating trend of disintermediation which would lead to an overall reduction in intermediaries. Indeed, examples such as the market dominance of iTunes in the music sector and the success of Facebook suggest that the digital era is creating fewer, more powerful intermediaries. As privately owned, for-profit corporations, these intermediaries have significant power as gatekeepers. If the trend continues, it suggests that these platforms may function as natural monopolies. All six of the case studies presented in this report some form of public support. For most of the firms, the support stems from regional development assistance or grants. Given the small sample size, it is possible that that public support is over represented by the SME nature of the case studies and Scottish government’s goals of economic development in these sectors. Nonetheless, the ubiquity of public funds supporting these firms suggests that the business models may not be sustainable in a purely private market.



Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)
Coverage of Evidence Based Policies
Issue Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Fair remuneration (levies; copyright contracts)
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Datasets