A team of five MBAs from the University of Cambridge Judge Business School recently completed a study which predicts the UK and German TV and film industries will monetise less than 15 per cent of the theoretical digital value in 2015 – leaving approximately 85 per cent “uncaptured”.
Their study, undertaken independently but with the support of Google, used creative industry data from the USA, UK and Germany to extrapolate “digital tipping points” – where digital revenues surpass physical revenues. To accomplish this, the team used music industry data as a benchmark to construct a predictive and dynamic model of film and TV industry revenues over time.
Their study suggests that the UK has been more successful in capitalising on digital revenues and capturing consumer value than other markets considered. The critical underlying factors for this growth are:
- a higher cultural propensity to embrace disruptive and innovative media in the UK
- a more flexible and open regulatory backdrop
The expectation is that other markets may utilise this information to help influence policy decisions to promote growth and digital adoption.