Charles DavisFaculty of Communication & Design, Ryerson University

24 November 2006

Toront®, medi@

©ity™

Creative destruction, structural adjustment, and growth of small

media firms in a second-tier media city

Charles DavisFaculty of Communication & Design, Ryerson University

24 November 2006

agenda• 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 DavisFaculty of Communication & Design, Ryerson University

24 November 2006

Media industries• 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 DavisFaculty 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 DavisFaculty of Communication & Design, Ryerson University

24 November 2006

Toronto’s position as media city (Kratke & Taylor)

Charles DavisFaculty of Communication & Design, Ryerson University

24 November 2006

Creative destruction in media industry

Aris & Bughin, 2005

Charles DavisFaculty of Communication & Design, Ryerson University

24 November 2006

IBM, The End of Television as We Know It, 2006

An effect of creative destruction in television distribution

Charles DavisFaculty of Communication & Design, Ryerson University

24 November 2006

CFTPA, 2006

Charles DavisFaculty of Communication & Design, Ryerson University

24 November 2006

Kratke, 2004

Charles DavisFaculty of Communication & Design, Ryerson University

24 November 2006

• * 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)

Charles DavisFaculty of Communication & Design, Ryerson University

24 November 2006

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

2001 2002 2003 2004 2005

Animation - children's series (A-CH)Animation/live-action children's series (A/L-CH)Live-action - children's (LA-CH)

Children’s tv production firms with at least one production/year

Charles DavisFaculty 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 media-using company

• Partners, esp. for animation & graphics

Charles DavisFaculty of Communication & Design, Ryerson University

24 November 2006

Thank you!

Questions?