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How Entertainment Companies Are Changing Their Organization: an Analysis on Media-Franchise Management and How the Movies Distribution Could Change in the Future

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How Entertainment Companies Are Changing Their Organization: an Analysis on Media-Franchise Management and How the Movies Distribution Could Change in the Future Department of Business and Management Chair of Value Creation and Governance How Entertainment Companies are changing their organization: an analysis on Media-Franchise management and how the movies distribution could change in the future. SUPERVISOR CANDIDATE Prof. Francesca Tauriello Lorenzo Marmorato CO-SUPERVISOR Prof. Evangelos Syrigos STUDENT ID 707271 ACKNOWLEDGMENT Part of the journey is the end. It has been an amazing five years-long journey and I truly feel blessed and lucky considering the moments I lived and the people I’ve spent my time with. For this reason, it is the right moment to write some acknowledgments. I would like to thank professor Francesca Tauriello for the important opportunity she gave me letting me writing a thesis about what for it is a passion: she followed me during the entire writing process and giving me the best advices in order to do the best job possible. Her passion and her ideas are remarkable and they were inspiring during these months. A huge thanks also to doctor Luigi Nasta, who helped the professor Tauriello for the feedbacks, and to professor Evangelos Syrigos, who has been interested to this work since the first day and has been very kind since our very first meeting. A huge thanks also to all the professionals who participated in this research: Guido Tundis, executive sales director of Warner Bros.; Marco D’Andrea, sales director of Universal; Davide Dellacasa, CEO of Brad&K; Mario Fiorito, CEO of EmmeCinematografica; Vincenzo Mandova, entrepreneur of this industry. Giving me their support, their time and helping me to realise this little big dream they made me understand that before being a good manager, each of us should be a good human being. Thank you. During the past months I have had the chance to grow professionally and personally. This is due to the opportunity I was like to had to be welcomed in the Gucci family, in Maddalena Beltrami’s team. I will always be grateful to her and her team, especially to my tutor Rachele Zanon and to Barbara Pezzoni. I would have never thought to be so lucky to work in a such big company with those amazing people. But I did. Thanks to all of you. A big thanks to my entire family, which sustained and encouraged me during all the last five years I have spent in Rome before and in Paris then. Especially my mother, Carla, and my father, Antonello, deserve a huge acknowledgment for alla the sacrifices they made for me in order to realise one of my biggest dream. They’re my greatest example to follow and the biggest challenge of my life will always be trying to be like them. A special thanks to my closest friends from my hometown, Colleferro. In these hard times we’re living could happen that a young men and young women ask to themselves if all the sacrifices they’re doing are worth of nothing. Each minute spent with them is the answer: every sacrifice was worth of the pain because it made us what we really are, and we couldn’t be prouder of this. The people I have around me, all of them, are my biggest victory. Three of them deserve a special mention. Pierfrancesco, an engineering talent. Alessandro, a hard-working student. Francesco, a very good future journalist. I spend my time with the bests and this is a challenge to me in order to be as good as they are. In the last five years I have known a lot of amazing people and students. Some of them choose a different path from mine but we still had the opportunity to keep in touch. I won’t forget any of them. Moreover, a special thanks are deserved for Matteo and Alessandro, who endured me in all the five years: both bachelor and master. Poor them. During these last two years path, however, I had the opportunity to know other amazing students who became “buddies” for this “journey”: Davide, also known as “Big D”, Pier Giacomo, also named “Pierluigi”, a strange hybrid between Lisa Simpson and Captain Marvel named Stefania and Tiziana. Together with them I’ve spent amazing moments preparing the exams. For us the exams were like a villain. For this reason, sometimes happened to call us the “Avengers”. A special thanks to Augusto. He gave me a house to live in and letting me to live in the most beautiful city in the entire world. Without him and the opportunity he allowed me, I wouldn’t be the man I am today. 1 This master’s degree is, partially, his too. What Augusto doesn’t know is that the house where he made me live in became a sort of “operational base” with all the other colleagues previously mentioned. We spent entire days, preparing exams, in that house. We called it: The Avengers Tower. Also, thanks to that place we had the opportunity to better prepare each exam giving out best. Sometimes we also reached goals that the night before we thought were impossible. What a great memories I have. I can wish them the best for their careers and for their lives. There is just one last thing that I could write thinking about them and it is: Avengers…ASSEMBLE! For my bachelor’s degree I dedicated just few lines to my cousin. He sadly passed away on the July of the last year. So, I would like to dedicate this entire final thesis to the beloved memory of Francesco Trulli, my cousin. Last time I wrote how the books, the professors and the exams could scare us. But in life there are things that scare the most: this is not an excuse to stop fighting. This is not an excuse to stop trying to win. During the illness he showed us to live without fear. So, I questioned myself: if he wasn’t afraid to die, why we should be afraid to live? The answer is that we shouldn’t. Not even for a second. This is all I have. This is the best I can give. This is all yours. Lorenzo 2 Table of contents ACKNOWLEDGMENT ...................................................................................................................................... 1 INTRODUCTION ............................................................................................................................................... 5 CHAPTER ONE ................................................................................................................................................. 8 “AN ANALYSIS OF THE ENTERTAINMENT INDUSTRY” ..................................................................................... 8 1. OVERVIEW OF THE ENTERTAINMENT INDUSTRY ................................................................................................ 8 2. THE EVOLUTION OF THE INDUSTRY ...................................................................................................................... 9 2.1 HISTORY OF FILM INDUSTRY ......................................................................................................................... 9 2.1.1 The “Silent Era” ............................................................................................................................................ 9 2.1.2 Birth of Hollywood .................................................................................................................................... 12 2.1.3 The modern age of film industry: New Hollywood .......................................................................... 16 2.2 THE ROLE OF TELEVISION IN THE ENTERTAINMENT INDUSTRY ............................................................. 19 2.3 INTRODUCTION AND IMPORTANCE OF THE HOME VIDEO ................................................................ 22 2.4 AGE OF STREAMING ................................................................................................................................... 25 3. RELEVANT FACTORS ........................................................................................................................................... 27 3.1 MAIN PLAYERS .............................................................................................................................................. 28 3.2 STRATEGIES AND FINANCING ................................................................................................................... 29 4. AN ANALYSIS OF THE INDUSTRY: SWOT ........................................................................................................... 32 4.1 SECTOR’S STRENGHTS ................................................................................................................................. 32 4.2 WEAKNESSES OF THE INDUSTRY ................................................................................................................ 33 4.3 OPPORTUNITIES IN THE BUSINESS .............................................................................................................. 35 4.4 POSSIBLE THREATS ........................................................................................................................................ 36 CHAPTER TWO .............................................................................................................................................. 38 “THE FRANCHISING IN THE ENTERTAINMENT INDUSTRY” ............................................................................ 38 1. FRANCHISE ........................................................................................................................................................... 38 1.1 DEFINITION OF FRANCHISE ........................................................................................................................ 38 2. INTRODUCING THE MEDIA-FRANCHISE .......................................................................................................... 40
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