New economics of creativity

My keynote speech to film and TV producers in Finland (video below) referred to the changing business environment for creative enterprises. Consumers are now also creators and marketers; technology is advancing and becoming cheaper at the same time; global communication and distribution are easieir than ever before.

These new realities bring both threats and opportunities. The old order is threatened by the loss of control. They no longer have a monopoly on the means of production in TV, film and video. New distribution networks are available online. And this new ‘democratised’ landscape enables new business models to emerge. My message was that established businesses must change or die.

On the positive side, this new economics opens up opportunities for new entrants in the world of video, film and TV.

One of the main factors is easier access to technology. At the conference I used my HD Fliip video camera to make YouTube quality video at the same time as the conference was being filmed with highly expensive TV cameras. Different definitions of quality for different purposes.

Making a feature film used to require cameras costing £100,000 GBP. Now, for £1,500 GBP you can use a Canon EOS 5D Mark II. This camera has been used to make an episode of House, the documentary ‘The Road to Coronation Street’, and the BBC series ‘Shelfstackers’.

Of course it takes more than equipment to make a film. As a creative industries management consultant advising talented film-makers, I know film-making needs a huge amount of creativity and dedication. It used to also require a huge amount of money, but this is no longer the case. The message in this article in the Observer is that we need to be creative with budgets. With the demise of the UK Film Council, more and more filmmakers will have to change their mindset away from public funding towards the new economics of creativity.

Combine this lower cost with opportunities to raise funds creatively using crowd-financing and film production is within the reach of the many, not just the few. For people involved in video, film and TV, there has never been a better time to think creativiey about business models and grasp the opportuity of the new economics of creativity brought about by inexpensive technology and online distribution.


David Parrish’s keynote speech at the Media & Message conference in Finland on the subject of ‘New Business Models in the Creative Industries’, including crowd-sourcing, viral marketing, crowd-financing and other business developments relevant to the creative industries.