Industry DescriptionThe video production, videotaping, photography, and photo editing services fit into the services industry.
Industry Segment Within the services industry, video production and videotaping services form a growing segment. TMM will be targeting video and photo production for dance recitals, dance competitions, theatrical productions, weddings, and video biographies. Most of the consumer spending for this segment comes from the recreation category and according to the Canadian “Market Research Handbook 2005” this spending category grew by 4.9% between 2003 and 2004 which is a continuation of a longer trend where spending rose by 39.3% between 1998 and 2004 to total $721.2 million dollars.
Growth and Trends The last 5 years have seen video and computer technology become much more affordable. Rather than requiring $20,000 for professional cameras or computers, they are now available for less than $5000. Professional internet forums also give access to resources and accomplished people like never before. This means that one can learn from the experts from home.
Rapid changes in technology offer not only challenges but also opportunities. Opportunities come when one is prepared for change. Preparedness comes from keeping in the information loop such as online forums, industry conventions, and industry associations.
The next wave of technology will include Hi-Definition (HD) cameras and the other associated hardware, such as Blu-Ray disks and more software to support HD. Managing the change to the new technology will be an exciting challenge. When discussing these industry changes with competitors, forums, and others in the business the general consensus is that conversion to HD for most businesses is still two years away.
Barriers to Entry The low cost of equipment now makes it easier for someone to get into the video production business. The barrier to getting into this type of business is skill and knowledge. One needs the creative and technical skills to film and edit and these skills take some time to develop. One also requires great marketing skills otherwise the business will never make it beyond a hobby.