Friday, December 08, 2006

Reflections on the third case study: AtomShockwaves

The third case study was about Atom Films, Shockwave and the merged AtomShockwave. The case descriped how the AtomFilms was founded by Mika Salmi and how the business model and business environment of AtomFilms and later on AtomShockwave evolved. The case was interesting example showing that just great creative content isn't enough, but also the management side and business model are important. Where to get profit?

Problem in this case was that Atom Films heavily depended on the income from advertisements. The advertisements markets have been down since the IT bubble and the Atom Films doesn't seem to have very good alternative business models. The Shockwave part seems to have potential. What should be done in order to make the whole company very profitable and maintain the growth?

I guess all of us on the course were thinking about breaking up the company and selling the Atom Films part. I agreed on this, but when coming back to the case for reflections I realised that one short film market has been existing only few years and will start growing rapidly: Mobile multimedia. Nokia has started its own line of products called Multimedia computers. This can be taken as a sign of time, effort and money that is currently put to make multimedia content truly mobile. Could this be one answer for the Atom Films?

Former CEO of Atom Films, Mika Salmi, has already made his own decision and has started his new work as president of Global Digital Media for MTV Networks. This really makes me think that which one is more important: quality content or good business model. An example on working business model with lower quality content is YouTube.

Atom Films was very creative business, but it failed to stay creative and adjust to constantly changing business environment. One creative burst isn't enough to create anything more than a fairly successful product on some niche market.

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