Value creation and competitiveness in small European markets

This report examines the competitive dynamics of small European film ecosystems through the lens of the Small European Film Ecosystem Model (SEFEM). SEFEM identifies four key avenues—production services, cultural resonance, exports, and cinematic arts—pursued by these ecosystems in varying ways, with different levels of intensity and in different constellations. The model differentiates these avenues based on factors such as legitimacy, success criteria, policy frameworks, financing logic, primary challenges, exposure to external competition, and key competitive factors. While SEFEM is rooted in the context of small European film ecosystems, its framework holds broader potential applicability. The report builds on data from Small European Film Markets: Portraits and Comparisons, enriched with updated data from for instance the European Audiovisual Observatory and Eurostat. New case-specific data from CresCine markets provide deeper insights into the challenges and dynamics of small film ecosystems. Empirical findings are drawn from diverse case studies that examine different avenues and markets. These chapters investigate topics such as production incentives, cultural resonance, film distribution, Video-on-Demand (VoD), and the concept of “collective agility” as a competitive advantage for small markets.

Key insights: The report highlights that small film industries are highly susceptible to volatility from internal and external changes and are often dependent on factors outside their control. Competitiveness depends on the ecosystem’s orientation and strategic aims, with each avenue facing unique obstacles, such as limited cinema infrastructure or unequal access to global VoD platforms, yet also unique possibilities. The report connects empirical evidence with the SEFEM framework to illustrate how small film industries navigate their challenges, offering actionable insights into policy and infrastructural improvements that can enhance their resilience and competitiveness.