This paper investigates how nuances in national copyright law affect the efficiency of online cop... more This paper investigates how nuances in national copyright law affect the efficiency of online copyright enforcement in the Scandinavian countries. The particular type of enforcement studied is copyright holders’ ability to have websites facilitating piracy blocked by broadband ISPs. A comparative institutional analysis identify differences in the implementation of EU’s Infosoc-directive and suggests that these have created significant variance in the efficiency of copyright protection between the countries.
Culture and Languages. He has just completed his doctoral dissertation in strategic management wh... more Culture and Languages. He has just completed his doctoral dissertation in strategic management where he does an in-depth transaction cost analysis of joint value creation in the motion picture industry.
In a white paper to the parliament the Norwegian Ministry of Culture and Church Affairs in 2004 n... more In a white paper to the parliament the Norwegian Ministry of Culture and Church Affairs in 2004 noted that while many of the recent national films could show a healthy return on its private capital of more than 50 percent there seemed to be a notable lack of participation from the traditional investment community in the financing of these films. This report explores the economic reasons for the lack of involvement applying a project financing perspective. A financing and performance review of all the Norwegian films that were theatrically released in 2005 reveals that while these films collectively lost 20 percent of their private capital some showed very strong returns for their private investors and others produced severe losses. Generally, the distribution of performance outcomes did not converge to an average and extreme outcomes were common. It is also demonstrated how positioning within a film's structured finance affects investment risk, and how the conditions to which public funding is offered affects conditions for private financing. The findings indicate at least two possible reasons as to why the traditional investment community in Norway may be hesitant to participate in feature film financing: An overall negative return on private capital and extreme performance outcomes for the individual projects. However, the analysis also shows that the right application of layered finance may open for investment opportunities more attractive to risk-averse investors from outside the film industry.
This chapter explores key issues in film financing from the perspective of organizational economi... more This chapter explores key issues in film financing from the perspective of organizational economics. It examines the contractual relationships between investors and producers, and analyzes how these relationships affect the formation and implementation of a single film project strategy. I argue that contracting problems can arise as a “natural” part of the financing process and can harm the project strategy in two important ways: (1) Through an incomplete alignment of objectives, which may lead to the formation of ambiguous strategies, and (2) through a weak governance structure with insufficient contractual safeguards for the strategy implementation, which may result in deviations from the agreed strategy. Based on an examination of these two problem areas, I suggest a contracting-dependent model that leads to four generic film project strategies, and further discuss the performance implications for each of these. Finally, to demonstrate the likely effects in a Scandinavian context...
This dissertation is concerned with expanding the scope of transaction cost theory from its prima... more This dissertation is concerned with expanding the scope of transaction cost theory from its primary concern with governance alignment to also encompass transaction value. The aim is to provide strategic management guidance, not only on how transactors best can structure their transactions, but also on how they can maximize the joint value created through these transactions.
The technocultural disruption triggered by digitization has radically changed the way in which we... more The technocultural disruption triggered by digitization has radically changed the way in which we consume films outside cinemas and transformed content providers’ business models. In Norway, between 2010 and 2016, DVD/Bluray and subscription-based streaming services switched places as major and minor platforms for home video consumption. Hence, home video consumption has migrated from a high-yielding platform at the head of the home video release cycle to a low-yielding platform at the tail end, where films also face tougher competition from drama series and international content tends to surpass local content. A case study of the earnings generated by local films released by a major distributor in this period suggests that home video revenues have diminished, making local films much more dependent on theatrical revenues and vulnerable to changes in cinema-going behaviour.
Various forms of public funding are used to encourage national film production, and one important... more Various forms of public funding are used to encourage national film production, and one important quality of such funding is its ability to attract complementary private financing and thus maximize the resources available for national film. When the Norwegian government restructured its film support system in 2001, it was an explicit goal to attract more private investments into national films. Yet three years later, the government observed that while many national films now could show a healthy return on their private capital of more than 50 percent, there seemed to be a notable lack of participation from the traditional investment community in the financing of these films. The present article explores the economic reasons for the lack of involvement by applying project financing and transaction cost perspectives to a microanalysis of the financing and performance of all Norwegian films released theatrically in 2005.
Culture and Languages. He has just completed his doctoral dissertation in strategic management wh... more Culture and Languages. He has just completed his doctoral dissertation in strategic management where he does an in-depth transaction cost analysis of joint value creation in the motion picture industry.
Sammendrag Denne rapporten belyser fjernsynssportens økonomiske egenskaper ut fra eksisterende me... more Sammendrag Denne rapporten belyser fjernsynssportens økonomiske egenskaper ut fra eksisterende medieøkonomisk teori. Rapporten drøfter de viktigste økonomiske egenskapene ved fjernsynsprogrammer generelt og fjernsynssport spesielt. Blant annet belyser den hvordan fjernsynssportens spesielle kostnadsstruktur skaper stordriftsfordeler og et sterkt incentiv til naermest for enhver pris stadig å utvide seergrunnlaget og søke inntreden på nye markeder.
Nordicom Review Nordic Research on Media Communication, 2009
Various forms of public funding are used to encourage national film production, and one important... more Various forms of public funding are used to encourage national film production, and one important quality of such funding is its ability to attract complementary private financing and thus maximize the resources available for national film. When the Norwegian government restructured its film support system in 2001, it was an explicit goal to attract more private investments into national films. Yet three years later, the government observed that while many national films now could show a healthy return on their private capital of more than 50 percent, there seemed to be a notable lack of participation from the traditional investment community in the financing of these films. The present article explores the economic reasons for the lack of involvement by applying project financing and transaction cost perspectives to a microanalysis of the financing and performance of all Norwegian films released theatrically in 2005.
In a white paper to the parliament the Norwegian Ministry of Culture and Church Affairs in 2004 n... more In a white paper to the parliament the Norwegian Ministry of Culture and Church Affairs in 2004 noted that while many of the recent national films could show a healthy return on its private capital of more than 50 percent there seemed to be a notable lack of participation from the traditional investment community in the financing of these films. This report explores the economic reasons for the lack of involvement applying a project financing perspective.
This dissertation is concerned with expanding the scope of transaction cost theory from its prima... more This dissertation is concerned with expanding the scope of transaction cost theory from its primary concern with governance alignment to also encompass transaction value. The aim is to provide strategic management guidance, not only on how transactors best can structure their transactions, but also on how they can maximize the joint value created through these transactions.
While there may be a substantial potential for media and entertainment products in new electronic... more While there may be a substantial potential for media and entertainment products in new electronic market channels, content producers and owners remain sceptical and are cautious to utilize these new market opportunities. Piracy and the fear of losing control over their property in the new channels constitute the basis for their scepticism. Applying a public good approach to the economic analysis of this problem reveals that there is no easy way of cir- cumventing the problem, but that it may be most successfully solved by increasing the degree of excludability for media and entertainment content also in these new channels. Excludability is a non- intrinsic economic product characteristic, which may be adjusted through a com- bination of property rights and technology. Further institutional and technological efforts towards establishing excludability will thus encourage e-commerce with media and entertainment products. While alternative solutions such as first release strategies and claiming payments from related markets may exist for certain con- tent categories, the excludability solution will enable the new electronic market channels to tap into vast libraries of recorded media and entertainment products and thus utilize the channels’ full potential.
This paper investigates how nuances in national copyright law affect the efficiency of online cop... more This paper investigates how nuances in national copyright law affect the efficiency of online copyright enforcement in the Scandinavian countries. The particular type of enforcement studied is copyright holders’ ability to have websites facilitating piracy blocked by broadband ISPs. A comparative institutional analysis identify differences in the implementation of EU’s Infosoc-directive and suggests that these have created significant variance in the efficiency of copyright protection between the countries.
Culture and Languages. He has just completed his doctoral dissertation in strategic management wh... more Culture and Languages. He has just completed his doctoral dissertation in strategic management where he does an in-depth transaction cost analysis of joint value creation in the motion picture industry.
In a white paper to the parliament the Norwegian Ministry of Culture and Church Affairs in 2004 n... more In a white paper to the parliament the Norwegian Ministry of Culture and Church Affairs in 2004 noted that while many of the recent national films could show a healthy return on its private capital of more than 50 percent there seemed to be a notable lack of participation from the traditional investment community in the financing of these films. This report explores the economic reasons for the lack of involvement applying a project financing perspective. A financing and performance review of all the Norwegian films that were theatrically released in 2005 reveals that while these films collectively lost 20 percent of their private capital some showed very strong returns for their private investors and others produced severe losses. Generally, the distribution of performance outcomes did not converge to an average and extreme outcomes were common. It is also demonstrated how positioning within a film's structured finance affects investment risk, and how the conditions to which public funding is offered affects conditions for private financing. The findings indicate at least two possible reasons as to why the traditional investment community in Norway may be hesitant to participate in feature film financing: An overall negative return on private capital and extreme performance outcomes for the individual projects. However, the analysis also shows that the right application of layered finance may open for investment opportunities more attractive to risk-averse investors from outside the film industry.
This chapter explores key issues in film financing from the perspective of organizational economi... more This chapter explores key issues in film financing from the perspective of organizational economics. It examines the contractual relationships between investors and producers, and analyzes how these relationships affect the formation and implementation of a single film project strategy. I argue that contracting problems can arise as a “natural” part of the financing process and can harm the project strategy in two important ways: (1) Through an incomplete alignment of objectives, which may lead to the formation of ambiguous strategies, and (2) through a weak governance structure with insufficient contractual safeguards for the strategy implementation, which may result in deviations from the agreed strategy. Based on an examination of these two problem areas, I suggest a contracting-dependent model that leads to four generic film project strategies, and further discuss the performance implications for each of these. Finally, to demonstrate the likely effects in a Scandinavian context...
This dissertation is concerned with expanding the scope of transaction cost theory from its prima... more This dissertation is concerned with expanding the scope of transaction cost theory from its primary concern with governance alignment to also encompass transaction value. The aim is to provide strategic management guidance, not only on how transactors best can structure their transactions, but also on how they can maximize the joint value created through these transactions.
The technocultural disruption triggered by digitization has radically changed the way in which we... more The technocultural disruption triggered by digitization has radically changed the way in which we consume films outside cinemas and transformed content providers’ business models. In Norway, between 2010 and 2016, DVD/Bluray and subscription-based streaming services switched places as major and minor platforms for home video consumption. Hence, home video consumption has migrated from a high-yielding platform at the head of the home video release cycle to a low-yielding platform at the tail end, where films also face tougher competition from drama series and international content tends to surpass local content. A case study of the earnings generated by local films released by a major distributor in this period suggests that home video revenues have diminished, making local films much more dependent on theatrical revenues and vulnerable to changes in cinema-going behaviour.
Various forms of public funding are used to encourage national film production, and one important... more Various forms of public funding are used to encourage national film production, and one important quality of such funding is its ability to attract complementary private financing and thus maximize the resources available for national film. When the Norwegian government restructured its film support system in 2001, it was an explicit goal to attract more private investments into national films. Yet three years later, the government observed that while many national films now could show a healthy return on their private capital of more than 50 percent, there seemed to be a notable lack of participation from the traditional investment community in the financing of these films. The present article explores the economic reasons for the lack of involvement by applying project financing and transaction cost perspectives to a microanalysis of the financing and performance of all Norwegian films released theatrically in 2005.
Culture and Languages. He has just completed his doctoral dissertation in strategic management wh... more Culture and Languages. He has just completed his doctoral dissertation in strategic management where he does an in-depth transaction cost analysis of joint value creation in the motion picture industry.
Sammendrag Denne rapporten belyser fjernsynssportens økonomiske egenskaper ut fra eksisterende me... more Sammendrag Denne rapporten belyser fjernsynssportens økonomiske egenskaper ut fra eksisterende medieøkonomisk teori. Rapporten drøfter de viktigste økonomiske egenskapene ved fjernsynsprogrammer generelt og fjernsynssport spesielt. Blant annet belyser den hvordan fjernsynssportens spesielle kostnadsstruktur skaper stordriftsfordeler og et sterkt incentiv til naermest for enhver pris stadig å utvide seergrunnlaget og søke inntreden på nye markeder.
Nordicom Review Nordic Research on Media Communication, 2009
Various forms of public funding are used to encourage national film production, and one important... more Various forms of public funding are used to encourage national film production, and one important quality of such funding is its ability to attract complementary private financing and thus maximize the resources available for national film. When the Norwegian government restructured its film support system in 2001, it was an explicit goal to attract more private investments into national films. Yet three years later, the government observed that while many national films now could show a healthy return on their private capital of more than 50 percent, there seemed to be a notable lack of participation from the traditional investment community in the financing of these films. The present article explores the economic reasons for the lack of involvement by applying project financing and transaction cost perspectives to a microanalysis of the financing and performance of all Norwegian films released theatrically in 2005.
In a white paper to the parliament the Norwegian Ministry of Culture and Church Affairs in 2004 n... more In a white paper to the parliament the Norwegian Ministry of Culture and Church Affairs in 2004 noted that while many of the recent national films could show a healthy return on its private capital of more than 50 percent there seemed to be a notable lack of participation from the traditional investment community in the financing of these films. This report explores the economic reasons for the lack of involvement applying a project financing perspective.
This dissertation is concerned with expanding the scope of transaction cost theory from its prima... more This dissertation is concerned with expanding the scope of transaction cost theory from its primary concern with governance alignment to also encompass transaction value. The aim is to provide strategic management guidance, not only on how transactors best can structure their transactions, but also on how they can maximize the joint value created through these transactions.
While there may be a substantial potential for media and entertainment products in new electronic... more While there may be a substantial potential for media and entertainment products in new electronic market channels, content producers and owners remain sceptical and are cautious to utilize these new market opportunities. Piracy and the fear of losing control over their property in the new channels constitute the basis for their scepticism. Applying a public good approach to the economic analysis of this problem reveals that there is no easy way of cir- cumventing the problem, but that it may be most successfully solved by increasing the degree of excludability for media and entertainment content also in these new channels. Excludability is a non- intrinsic economic product characteristic, which may be adjusted through a com- bination of property rights and technology. Further institutional and technological efforts towards establishing excludability will thus encourage e-commerce with media and entertainment products. While alternative solutions such as first release strategies and claiming payments from related markets may exist for certain con- tent categories, the excludability solution will enable the new electronic market channels to tap into vast libraries of recorded media and entertainment products and thus utilize the channels’ full potential.
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Papers by Terje Gaustad
is to provide strategic management guidance, not only on how transactors best can structure their transactions, but also on how they can maximize the joint value created through these transactions.
is to provide strategic management guidance, not only on how transactors best can structure their transactions, but also on how they can maximize the joint value created through these transactions.