04.04.2007

Tampere research confirms the change:
Success in the audiovisual business means transforming your business model

Research accomplished at the Tampere Polytechnic University of Applied Sciences confirms that in the next few years information technology will transform the ways of doing business in cultural and scientific content production and distribution. In the last ten years Internet-based information networks have developed into easy-to-use and socially connecting media platforms when anyone can not only be a producer of new content but also a global distributor.

Cai Melakoski, Principal Lecturer at Tampere Polytechnic University of Applied Sciences (left) and Timo Vuorensola, Director of the company Energia Productions are knowledgeable about social media. High resolution image (348 Kb) Photo: Kalle Heiska

Ever easier usability of Internet tools has inspired at least the slightly younger working-aged generation in the audiovisual field. They have just realised that by distributing free of charge as part of an Internet-based community they can achieve familiarity which may well turn into profitable business activity.

In the audiovisual field there is interest in novel social media business activity. Thanks to information network communities, films, books, pictures and recordings otherwise considered marginal can locate among global consumers an economically highly profitable number of buyers for products and services. Enterprises in the field need training and finance for their development work as they appreciate the risk of a decline in their conventional business without considerable remodelling of business operations.

The TAMK research demonstrates that there are a few enterprises among culture and science content producers who have already succeeded in taking advantage of the new business opportunities based on communality based social media. In the media field this can be seen in the form of interactively established blogs providing subjects for new content. The media also partially support their own basic business operations by purchasing user rights to digital pictures publicly offered in consumers’ communal networks.

Profitable communal business has been achieved in games and films, examples being Habbo Hotel and Star Wreck. These are open activity platforms where consumers can participate in content production. At the same time those maintaining the content have created a new basic business from chargeable additional functions. For example, free viewing of the film Star Wreck was found surprising, but international “free viewing” and becoming known ultimately turned out to be profitable business.

Social media can also be seen as novel business in the field of music. The pop group Kooga recently topped the UK Top 40 charts, and their music had been disseminated over the Internet – not a single CD recording has been published. With social information network technology more and more music professionals are “liberated” from the recording companies and CD recordings and sell their recordings over the Internet direct to consumers.

The TAMK research on new business models in the audiovisual field is part of the participatory economic research project led by the Hypermedia at the University of Tampere. This involves Aina Group, A-lehdet, Tuotantoyhtiö Energia, Ericsson, Professia Oy, COSS, Mediamaisteri Group and TEKES as a partial funder.  The project is due to end in 2008.

Additional information:  www.tamk.fi/kirjasto/Parteco_selvitys2007_MelSirTir.pdf