Competitive Capabilities in Film Distribution Market: The Case of Filimo

Abstract

In the Iranian film industry, movies have been traditionally distributed for many years through a physical market in the form of CDs or DVDs after they satisfied their theatrical exhibition. Virtual space however has provided rival companies with an opportunity to gain a share in the movie distribution market. A notable rival here is Saba Idea Company. As a small media entrepreneur, the company has launched a film distribution website, dubbed ‘Filimo’, in a bid to fetch a portion of the distribution market. Having enjoyed the assistance of two cell phone companies and a major ADSL service provider in Iran, Filimo has already presented a major rivalry to the physical movie distribution system. This paper follows Kranenburg and Ziggers’ innovation-centered business model to discuss a set of capabilities that might have helped the small media entrepreneur in I.R.Iran to develop a strategy that is promising for its competition in the film distribution market. In the meantime, I discuss the business environment of film distribution in Iran with a focus on challenges facing the traditional models of distribution following the emergence of the Internet.