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Industry Divide: The Interdependence of Traditional Cinematic Distribution and VOD in Poland

Publication at Faculty of Arts |
2020

Abstract

This chapter focuses on the mutual relations and influences between the VOD market and traditional cinematic distribution in the case of the local Polish market. The main topic is the separateness of both fields in the aspects of business logic and corporate control.

According to these factors, the VOD market is much closer to traditional TV and cinematic distributors are cut off from the main flow of revenues from VOD. They are selling rights at cheap prices or are forced to sell large packages of numerous films.

The current growth of profits in Polish cinematic distribution is caused by the expanding traditional market. The Polish VOD market is more concentrated around the most powerful players and has much higher barriers to entry than the traditional cinematic distribution market.

The revenue stream is more tightly controlled by the entities dominating the VOD market, acting mostly in the interest of their own and their superior corporate structures, unwilling to share it with outside content providers. Therefore, the traditional cinematic market players-distributors and, indirectly, producers-are largely cut off from the stream of VOD revenue and are looking for alternative development models.