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Innovation in Cultural Goods and Services: Meeting New Socio-Cultural Demands

Explore how innovation transforms cultural value chains & audience roles. Cases include Star Wreck, Opera By You, Gigswiz, & "Consumer radio." Discover the impact of crowdsourcing, open source approach, & technology in the industry.

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Innovation in Cultural Goods and Services: Meeting New Socio-Cultural Demands

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  1. Workshop 2A: From Innovation to Meeting New Socio-Cultural Requirements Dr Jari Muikku, Digital Media Finland

  2. Topics of the presentation • The changes in the traditional value chain of the production of cultural goods and services • The changes in the role of the audience • Four cases • Conclusions

  3. The traditional value chain CREATION  PRODUCT DEVELOPMENT / PACKAGING  PRODUCTION / MANUFACTURING  DISTRIBUTION  MARKETING  CONSUMPTION

  4. The value chain: changes • Traditionally a closed and linear system with little active input from audience/consumers • The interaction between technology, innovation, and audience has changed the situation • For example, the DIY culture in music business in late 1970s • The democratisation of production technology • Cheap and portable technology: c-cassette, Walkman, alternative values • The biggest change:internet and mobile devices • Means and level of interaction: new dimensions

  5. What has changed: buzzwords • Fragmentation – Traditional demographic segments do not apply any longer: multitude of user motives, values and preferences in consumption • Communality – Tribal behaviour patterns, shared stories • Interaction – Both horizontal and vertical • Crowdsourcing - Active participation in all aspects of the traditional value chain: creation, marketing, and distribution • Open source approach – Unformal and dynamic networks • No borders – Services and audience participation are no longer limited by country borders: important factor for the socio-cultural cohesion within EU

  6. Case 1: Star Wreck & Iron Sky • Star Wreck: a crowdsourcing-based Finnish movie (2005), which has been watched nine million times in internet • Production budget 15 000 €, took seven years • Produced by a group of five persons + 3000 volunteers • Iron Sky: a follow-up production with 10 000 volunteers and 60 000 – 70 000 fans • Fans help with creative parts (designing space ships), technical parts (making sets), and financing (micro investments) • Script by an esteemed Finnish novelist (Johanna Sinisalo), German actors (Udo Kier), music by Laibach (Slovenia) • Currently hundreds of crowdsourcing-based movie projects

  7. Case 2: Opera By You • A crowdsourcing project launched by the Savonlinna Opera Festival: ”We have the castle and the cast but no opera.” • World class singers, 80-piece choir, symphony orchestra + the medieval castle at anybody’s disposal • Currently the plot of the libretto is already chosen and is based on the winner among suggestions by the audience: more than 100 inputs • Next steps: set, decorations, and music in a similar manner • Final libretto and music will be put together by a team professionals based on the results of the project • Premier on July 2012

  8. Case 3: Gigswiz • Traditional pop/rock live music business: promoters or clubs/venues/festivals book bands for gigs based on their own views • Currently live music is a polarized business: few top earners • Gigswiz is a Finnish service based on the fans’ direct requests, and the tours are planned according to their requests • This information is backed up by localisation information e.g. info on which music has been listened in certain locations • Gives the bands a bigger share of the income and gives the audience more power in influencing who will play in their home cities

  9. Case 4: ”Consumer radio” • Traditional vs. DIY radio • The popularity of streaming services is increasing (Spotify) • There is potential for additional services to streaming services • Consumers can currently create and share their own playlists • Additional services can offer consumers possibilities to attach additional elements to their playlists: DJ introductions (Playdio, UK), news, weather forecasts etc. • From passive to active consumer • From competition to co-opetition

  10. Conclusions • The development of technology and online services – either as such or combined with other type of activities - will give the audience a much more important and active role in: • creation • innovation • business models • consumption • New type of consumption patterns and values require changes in the roles and business models of the other players of the value chains • The audience’s active participation will open up new type of possibilities for EU level socio-cultural cohesion

  11. Thank you! Dr Jari Muikku Digital Media Finland jari.muikku@digitalmedia.fi www.digitalmedia.fi

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