Toront®, medi@ ©ity
™
Creative destruction, structural
adjustment, and growth of small media
firms in a second-tier media city
Charles Davis
Faculty of Communication & Design, Ryerson University
24 November 2006
agenda
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What are the media industries?
Media cities and media clusters
Toronto’s position as a media city
Media value chain
Creative destruction in media industry
Structural adjustment of Canadian television
industry
• Measuring firm-level capabilities in media
firms
Charles Davis
Faculty of Communication & Design, Ryerson University
24 November 2006
Media industries
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Filmed entertainment
Television distribution: broadcasting, cable, satellite
Radio
Recorded music
Advertising
Internet access
Business information
Magazine publishing
Newspaper publishing
Consumer book publishing
Educational and professional books and training
“new media” (old multimedia)
Charles Davis
Faculty of Communication & Design, Ryerson University
24 November 2006
Key literature on media cities and
media clusters
• Scott: LA film/tv cluster
• Nachum & Keeble: linkages of London media
firms
• Goldsmith & O’Regan: urban studio complexes
• Gasher & Elmer: Contracting Out Hollywood
• Bathelt: Leipzig’s media industry
• Britton, Smith, Tremblay: new media
• Tinic, Gasher, Coe: Vancouver film/tv cluster
• Kratke, Global Media Cities in Worldwide Urban
Network
Charles Davis
Faculty of Communication & Design, Ryerson University
24 November 2006
Toronto’s position as media city (Kratke & Taylor)
Charles Davis
Faculty of Communication & Design, Ryerson University
24 November 2006
Creative destruction in media industry
Aris & Bughin, 2005
Charles Davis
Faculty of Communication & Design, Ryerson University
24 November 2006
An effect of creative destruction in television distribution
IBM, The End of Television as We Know It, 2006
Charles Davis
Faculty of Communication & Design, Ryerson University
24 November 2006
CFTPA, 2006
Charles Davis
Faculty of Communication & Design, Ryerson University
24 November 2006
Kratke, 2004
Charles Davis
Faculty of Communication & Design, Ryerson University
24 November 2006
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Dramatic TV series (TV-S)
* Variety series (TV-V)
* Magazine/Lifestyle series (TV-ML)
* Comedy series (TV-C)
* Animation - adult series (TV-A)
* Animation - children's series (A-CH)
* Animation/live-action children's series (A/L-CH)
* Live-action - children's (LA-CH)
* Reality series (TV-R)
* TV special - (SP)
* Documentary one-off (DOC)
* Documentary series (DOC-S)
* Factual series (FAC-S)
* TV movie (MOW)
* Miniseries (MS)
* TV series pilot (TV-P)
* Theatrical - dramatic (T-DR)
* Theatrical - documentary (T-DOC)
* Theatrical - animated (T-A)
* Short (SH)
* Short - animated (SH-A)
* Large format (LF)
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Charles Davis
Faculty of Communication & Design, Ryerson University
24 November 2006
Animation - children's series (A-CH)
Animation/live-action children's series (A/L-CH)
Live-action - children's (LA-CH)
0.7
0.6
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0.1
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2001
2002
2003
2004
2005
Children’s tv production firms with
at least one production/year
Charles Davis
Faculty of Communication & Design, Ryerson University
24 November 2006
Understanding firm-level capabilities: the
business platform model (Davidsson & Klofsten)
• Formulation & clarification of
the business idea
• Development of finished
product
• Definition of market
• Development of an
operational organization
• Core group competence
• Customer relations
• Other relations
• Tv production firm -> Kids’
media entertainment firm
• 30 min tv show –>
multiplatform
• Tv -> any kids’ product
• Creative artist -> executive,
entrepreneur
• Creativity ->market,
business development
• Broadcaster -> any mediausing company
• Partners, esp. for animation
& graphics
Charles Davis
Faculty of Communication & Design, Ryerson University
24 November 2006
Thank you!
Questions?
Charles Davis
Faculty of Communication & Design, Ryerson University
24 November 2006