/// THEORY3 Digitisation, Disruption and Convergence

Digitisation

 The ongoing but advanced process of moving from analogue (eg VHS, 35mm film) to digital production, distribution and exchange, which has reduced costs and led to convergence and disruption

Disruption

 Radical changes to the established methods of distribution, often leading to new competitors arising

Convergence

 The reducing gap between professional and amateur/consumer/prosumer level equipment; the shrinking distinction between audience and producers as old top-down approaches and passive audiences are replaced by active audiences (web 2.0!!!) and a dynamic two-way flow (UGC); the blurring of once clear divides between media industries - film and TV are notable, and think about how both now extend across web and smart devices too, plus VR

E.G

Film4 and the BBC are UK TV channels/producers with limited funds for film production. Where Amazon and Netflix spend billions worldwide, and over $100m just in the UK, the combined TV/film budget of all traditional UK TV channels (and their film wings) is far less than Netflix's UK spend alone. They pay upfront for rights to low budget films like Warp's output. This, combined with non-repayable grants from the likes of the UK Film Council(today that is the BFI) and its regional wings like EM Media and Screen Yorkshire(using government and National Lottery funding), or EU funds. These grants ensure cultural diversity in film production, which would be impossible on raw commercial terms - US movies would simply take up almost all UK screen time otherwise. What box office prospects does She, A Chinese or Tyrannosaur have?!

Warp generally struggle to get UK theatrical distribution for their movies, never mind international (let alone China...). However, you will see Optimem Releasing on several of their movies - a StudioCanal subsidiary that has now been relaunched as StudioCanal UK, forming an unlikely link with WT!