Discuss the significance of technological convergence for the media industry you have studied. Technological convergence – a term which describes a single device doing the job of several devices, such as a PS3 being a games console and a bluray player, as well as having online streaming service – is of particular significance to the film industry, and it is revolutionising the ways in which films are distributed, exhibited and consumed. In this essay I will explore the effects technological convergence is having on the film industry in relation to my case studies of StudioCanal and LoveFilm, digital projection in cinemas (focusing upon Cinema City, a local independent cinema in Norwich), and digital marketing and the films Tinker, Tailor, Soldier, Spy, Contraband and Animal Kingdom, as well as digital distribution. I will also make use of a report from the BFI from September 2011 on the impact of digital technology on film consumption. One example of technological convergence is the devices that are used by audiences such as laptops, PS3s, iPads, and the proliferation of viewing platforms available for home entertainment/ home film viewing. The BFI reported that the use of these Video-on-Demand services such as iPlayer and LoveFilm have increase significantly in 2010-2011, and this is driving media institutions to distribute their products in new ways that enable them to access this growing market. StudioCanal, for instance, signed a deal with LoveFilm in September 2011 to exclusively distribute their films in the UK via online streaming to PS3s, iPads and PCs. This deal is a reflection of the way in which media institutions are responding to changes in audience behaviour brought about by technological convergence. Whilst this is an example of how distribution for home entertainment is being affected by technological convergence, technology is also leading to changes in distribution to cinemas. As distribution on film reels costs around £2000 per print and digital distribution by harddrive costs just £50, the cinema industry and distribution companies are seeking to invest in digital projection facilities to save costs and also offer greater diversity in their programming. Cinema City is an example of this: since 2006 the cinema has invested in 3 digital projectors, funded in part by the Digital Screen Network and Europa schemes, and this has enabled the cinema to compete with other chain cinemas in the city such as Vue and Odeon. The digital projectors are a form of technological convergence: not only can they project film, but they can also be used to project satellite-streamed theatre performances, large screen video gaming, as well conference and education presentations. Technological convergence has offered Cinema City the opportunity to diversify: their cinema no longer just exhibits films, but is able to be much more diverse, and therefore can compete with the chain cinemas. This offers new opportunities and content for audiences, and Cinema City is using this as a way of targeting new niche audiences, such as through their screenings of the New York ballet. The Digital Screen Network and Europa funding arrangements require the cinema to show a quota of specialist films, including archive films, documentaries, local interest films and foreign language films. In this way, we can see that technological convergence has driven the cinema’s programming, affecting the content that they exhibit.
The Digital Screen Network and Europa schemes, as well as the emphasis on distributing films digitally, has also boosted the independent and low budget film industry: smaller institutions are able to afford wider print runs, exhibiting their films in a larger number of cinemas. One example of this is the Australian film Animal Kingdom. This film was produced by Porchlight Films with funding from the Australian government, and was distributed in the UK by Optimum Releasing (now StudioCanal). The low budget of $5m limited their distribution opportunities, however the rise of digital cinema distribution enabled them to distribute to 66 cinemas in the UK. Distributing through Optimum, which as part of SutdioCanal has been able to distribute the film through the Lovefilm arrangement, has meant that the film has had even greater release and promotion within the home entertainment sector. Liz Watts, the film’s producer, has argued that digital distribution direct to audiences is the future of the industry, and that services such as LoveFilm will curate the content to ‘develop customized experiences’ for audiences. Animal Kingdom’s success can be directly related to the benefits of technological convergence: the digital distribution in cinemas and to homes via LoveFilm have significantly benefited the film. Liz Watts has also discussed how the film heavily used digital marketing as part of its promotion, and this is another way in which technological convergence is affecting the film industry. Watts has celebrated the importance of using cheap marketing through social networks as a way to promote low budge films. With the rise of smart phones, which are an example of the convergence of video-playing devices with communication devices, users can download apps (such as the LoveFilm app, or Facebook or Twitter) and engage directly with a film’s marketing, clicking through to view trailers, book tickets, or even purchase DVDs. Animal Kingdom made great use of this, but it is even more significant for the Working Title films Tinker, Tailor and Contraband. Both of these films heavily used Twitter and Facebook as part of their UK marketing campaigns, encouraging (cheap) word of mouth publicity through online competitions and stunts related to Facebook. These strategies, made possible by the technological convergence of smart phones, have meant that both films have been great successes, with Contraband making nearly 4 times its costs in box office sales. In this way, we can see that technological convergence is transforming film marketing. From my case studies, I have argued that the film industry is being transformed at the levels of distribution, exhibition, marketing and consumption by technological convergence.