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Risk Management in Film Industry in Russia and USA

Student: Vikentij Chevtaev

Supervisor: Ilya Kiriya

Faculty: Faculty of Media Communications

Educational Programme: Master

Year of Graduation: 2014

<p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p align="center"><strong>The master thesis summary</strong></p><p align="center"><strong>&laquo;</strong><strong>&nbsp;Risk Management in Film Industry in Russia and US</strong><strong>A</strong><strong>&raquo;</strong></p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p align="right"><u>Faculty of Media Communication</u></p><p align="right"><u>Media production in the creative industries</u></p><p align="right"><u>Group 745J</u></p><p align="right"><u>Chevtaev V. A.</u></p><p>Russian film industry &ndash; is one of the youngest significant film industries in the world, which experiences permanent crisis, while the film industry of the USA remains most powerful and successful in the world and continues to earn money both on the American and on the Russian audience.</p><p>This master thesis is devoted to consideration of one of the most important aspects of a problem of controllability in the Russian film business &ndash; risk management.&nbsp; Conceptual method of this work is the comparison of a domestic cinema to the film industry of the USA for consecutive and comparative research of problems of risk management in domestic film production.</p><p>Here is the attempt to study the basic principles of the mechanism of risk management in film project. It is made in theoretical and practical aspects.</p><p>The purpose of the master thesis &ndash; to interpret and prove the main methods and tools of risk management in the film industry, to reveal the key features of risk management in the film industries of Russia and USA.</p><p>&nbsp;</p><p><strong>Research objectives:</strong></p><p>&bull;&nbsp; To study methods and risk management tools,</p><p>&bull; To formulate the main theoretical provisions of a risk management in relation to film production</p><p>&bull; &nbsp;To reveal branch features of a risk management in film business</p><p>&bull; To give a general characteristic to the film industries of the USA and Russia</p><p>&bull; To describe methods and tools of a risk management &nbsp;which are applied in the film industries of the USA and Russia and to define the main distinctions</p><p>&nbsp;</p><p><strong>Research hypothesis </strong>&ndash; Economic tools, which are based on the theory of risk managment are differently applied nn the film industries of the USA and Russia.</p><p>&nbsp;</p><p>&nbsp;</p><p><strong>Theoretical methods of research:</strong></p><p>&bull; Studying the scientific and special economic literature about management and marketing, risk management, innovative design.</p><p>&bull; Studying the special literature about &nbsp;cinema, the film industry, design activity, including articles and publications on the Internet</p><p>&bull; Comparative and comparative analysis</p><p>&bull; Classification method</p><p>&nbsp;</p><p><strong>Empirical methods of research:</strong></p><p>&bull; Analysis of statistical data</p><p>&bull; Expert interview</p><p>&nbsp;</p><p><strong>Empirical base of research:</strong></p><p>&bull; Annual reports information (Nevafilm)</p><p>&bull; Publications in mass media (RBC daily, Broadcasting.ru, &quot;Vedomosti&quot;, The Variety, The Hollywood Reporter, etc.)</p><p>&bull; Data from web-sites about media and film industry (nevafilm.ru, kinopoisk.ru, etc.)</p><p>&bull; The results of expert interview</p><p>&nbsp;</p><p><strong>Results of the work:</strong></p><p>The most burning issues of risk management in comparison to the main competitor (USA) are established as a result of the analysis in the Russian film industry:</p><p>Branch infrastructure is inferior regarding risk management. The branch isn&#39;t attractive to solid banks and financial funds, large insurance companies.</p><p>Lack of the branch mechanism of risk management doesn&#39;t allow film companies to carry out full strategic planning and to develop &n

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