Comm306_Croaching_Tiger - 306 Croaching Tiger This paper...

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306 Croaching Tiger This paper will analyze the dynamic change that globalization is bringing to the International Knowledge Society and the businesses related to that economic sector. Over the past twenty years the American economy has made its final transition from the industrial age to the information age. To look at the export sector, the dominance of the Knowledge Economy is even more striking. Large Media, Software and Pharmaceutical firms dominate the American export economy . The conventional wisdom assumes that the economies of scale that benefit classic manufacturers will also enhance the competitive position of firms that deal in the more intangible outputs of ideas, creativity and soft power . However, there are several countervailing forces that might slow the dominance of American firms in the world knowledge economy. The first is the rise of potent knowledge economies in Asia, Russia and Europe. The second relates to the The US development of sophisticated digital special effects has created a unique franchise that has allowed American films to amaze the world’s audience. When a film like Jurassic Park can simulate photo-realistic dinosaurs, the need for culturally specific story-telling skills is obviated by the wonder created by the special effects. As we will see, this special effects expertise is beginning to be diffused and there is strong evidence that in New Zealand, Russia, China and France there are ample large* computer generated effects “shops” in place to challenge this American specialty. The “cultural discount” for English language films is lowered every year as English as the world’s second language infuses itself into school curriculums in most countries. 4. The US has the most mature legal copyright environment in which to exploit (use) ancillary (second source) revenues (DVD, Video On Demand) for feature films. While Indian and Chinese films may perform well in theaters, they generate relatively little revenue in the DVD market. Hollywood films While all of these factors have kept Hollywood in the driver’s seat ( Figure 1 ) in the past, there is no reason to believe that any of these (with the possible exception of the English language cultural discount) are not undergoing profound changes in the globalization climate of today Challenges to American Cultural Dominance In assessing the long-term dominance of Hollywood, several key factors aside from the ones previously mentioned, stand out as potential weaknesses in the American market. 1. The U.S. movie market is relatively mature with flat YOY ticket sales (
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This note was uploaded on 05/31/2010 for the course COMM 306 taught by Professor Taplin during the Spring '07 term at USC.

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Comm306_Croaching_Tiger - 306 Croaching Tiger This paper...

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