Competing in the creative industries: Two-sided networks and the case of Hollywood

Abstract

This paper explores whether the dominance of leading creative centres can be explained by two-sided markets. It is proposed that two-sided networks contribute to a high level of geographic concentration. The Hollywood film industry is used as an example of how contrasting forces tend to shape the structure of the creation and the production/distribution components of creative industries. This results in two separate but symbiotic groups. The mutual attraction of these groups creates a strong incentive for producers/distributors and creative artists to co-locate. This implies that success in creative industries may require an approach appropriate to a two-sided model. Attraction and inclusion are central to this approach. • Contrasting forces shape the structure of creation and production/distribution in creative industries. • Hollywood is a platform for the interaction of creative talent and production/distribution in film and television. • Struggles are often rooted in strategies and decisions that are wholly inappropriate for their industries. • Platform strategy consists of actively attracting members of both groups and proficiently facilitating their interaction. • The dynamics of creativity are particularly driven by the mutual attraction of those involved in the creative process.