Cultural Contents Industry (CCI) has recently attracted growing attention as a leading knowledge-based industry in the 21st century that is likely to generate high growth and profits with technological development. Development of digital technology ha...
Cultural Contents Industry (CCI) has recently attracted growing attention as a leading knowledge-based industry in the 21st century that is likely to generate high growth and profits with technological development. Development of digital technology has given rise to market rearrangement and incorporation as well as new value chain in CCI. Subsequently, companies in CCI are able to exchange their contents each other. This study establishes an analysis framework exploration and exploitation process by analyzing cultural contents systematically and combining the resource-based view with the knowledge creation theory. In addition to this, the change of the value chain has been explained in film industry, core of CCI, as digital technology introduced. Its management performance has also been analyzed empirically at an individual firm level.
The purpose is to derive suggestions to apply the logic of exploration and exploitation of core competence to cultural content strategically through establishing the analysis framework about the process of creating and utilizing content. The creating process for exploring new cultural contents is classified into two categories ‘transformation and ‘transmutation’. While the former does not change the fundamental attributes of existing content, the latter alters the existing characteristics through synthesizing over two different components. ‘transformation’ can be seen in the movie ‘Tazza’ (Korean gamblers) produced based on the cartoon ‘Tazza’ while sticking to the original scenario. On the contrary, as the case of ‘transmutation’, the musical ‘Lion King’ can be seen as a creation of integration of multi-source though its synopsis is borrowed from Shakespeare’s Hamlet. This example indicates that incorporating multiple sources of content implicitly is a more effective way to create new content. The way of using cultural content is classified as direct or indirect. The direct use of contents is the ‘expansion’ way which is re-using the original content in the value-added products markets. The velocity of expansion process based on the one source multi-use is accelerated and the range of it is also broadened as the digital technology is developed. Using the exampla of SKT that They extended the usage range of cultural content rapidly by using digital technology. The indirect usage of cultural content is divided into two types, ‘internalization’ and ‘externalization’. The former is incorporates the different values into the original content. PPL(procuct placement), indirect advertisement is one of the representative types of internalization’. In the case of PPL, the indirect exposure is more effective than the direct one. The ‘externalization’ is materialized as character products, theme park, movie tour, etc. When the intangible cultural contents are materialized, from the planning stage it is important to set up clear and broader area of commercialization. Given the above discussion, it can be derived the strategical implication that cultural content should be incorporated with multiple sources from creating process and be multi-used by direct or indirect to achieve more effective result.
This research is conducted to evaluate the effect of the value chain in the film industry with respect to the development in digital technology. We focused on what kind of value-added things would be created on each value chain process based on the digital technology, or how it would impact on the productivity and drew a proposition. The value chain of the film industry constitutes of four phases; 1) increasing the external capital in the investment phase; 2) importance of the physical switching cost and learning cost of manpower during the production phase; 3) promoting vertical integration strategy from the major companies with the economy of scale during the distribution phase; 4) and lastly during the screening phase, improving the procedure will increase the overall effectiveness of the management. Although the digital technology development calls for a huge start-up investment, once the stages that lead to the value chain becomes digitalized, the outcome of it would lead to higher productivity.
With resource dependency theory and transaction cost view, this research analyses effects on domestic or international performance in film industry which is achieved through the resource outsourcing strategy or in-house resource one. Firstly, in order to verify the performance of the interdependence strategy amongst firms which outsource some of their resource, this study examines the differences between two cases: one is inter-majors cooperation and the other is inter-minors one. Secondly, this study measures the performance of vertical integration strategy as the way of resource internalization. As the result of empirical test, the performance of inter-major case is higher than that of inter-minor case. However, export performance is less likely to show that there is a significant difference between them. Regarding the vertical integration, the companies implementing the strategy show better performance than the others in domestic market but in export no notable consequences is detected.