Digital transformation and
 open innovation ecosystems in the tilm industry: the case of the Movieday platform

Digital technologies are transforming the film industry. Up until roughly a decade ago, the business model for film exhibition was based on theatrical release in combination with television sales and home cinema releases (video and DVD). Recently, many questions have arisen in response to the growing popularity of online Video on Demand (VoD), with numerous platforms competing for consumers including Netflix, Amazon Instant Video, and iTunes, as well as the diffusion of broadband Internet and connected devices that play movies (including Internet-connected TVs, tablets and mobile phones). Furthermore, business trends are transforming the value chain from supply-led to demand-led, altering the exclusivity of existing suppliers and gatekeepers. Thus, the “Cinema digital transformation” has accelerated an audience development approach, pushing cinemas to pursue more dynamic programming as the elimination of logistical issues associated with the physical distribution of 35 mm film reels allow greater programming flexibility. Consequently, cinemas are increasingly becoming a supply-led market where exhibitors are the gatekeepers for curating entry into the theatrical retail environment. Also, independent distributors have exploited the “film as an event” to provide additional value to the theatrical experience such as, e.g., “cinema on demand,” or “user driven cinema exhibition,” based on critical mass ticketing, which is facilitated crowdsourced theatrical film events platform (such as in Spain, and in USA, in UK, and Movieday in Italy). This article investigates the case of Movieday, an Italian startup founded in 2014. About 120 Italian cinemas are partnering and since the opening, over 200 screenings have been held (many sold out). Movieday challenges the top-down programming of film events through the creation of an open innovation ecosystem based on the platform and an extensive use of crowdsourcing. Programming is bottom-up, coming after the bookings, and is therefore based on personal purpose or even community purpose. In this way, customers share the power of the gatekeeper position, more “Push” than “Pull” mode, turning to social media for their decision-making and for programming.

Presented at:
4th Annual World Open Innovation Conference (WOIC2017), San Francisco, CA, USA, December 14 -15, 2017

 Record created 2017-12-18, last modified 2018-09-13

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