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.