Dubbed or Duped? Path Dependence in the German Film Market

Abstract Dubbed or Duped? Path Dependence in the German Film Market An Inquiry into the Origins, Persistence and Effects of the Dubbing Standard in Germany by Miika Blinn DFG-Graduiertenkolleg "Pfade organisatorischer Prozesse" FB Wirtschaftswissenschaft, Freie Universität Berlin, Garystr. 21, D-14195 Berlin Abstract Motivation Dubbing has been the dominant technique in Germany for preparing foreign-language films for the film market. At the same time, dubbing is increasingly perceived as a suboptimal standard; subtitling is preferable in terms of costs, cultural diversity and acquiring foreign- language skills – but nobody seems to know how to break this long-standing code. Therefore the major research Question is: Why and how did dubbing become the dominant language transfer technique in Germany, what explains its persistence and how does the dubbing standard compare to a subtitling standard in terms of economic efficiency? Theory The explanations pursued in this paper build on the theory of path dependence (Arthur 1989; David 1985, 1997; Arrow 2004). In more detail, the process of becoming path dependent can be distinguished in three stages (Sydow, Schreyögg and Koch 2005, p. 9): Phase I: The initial phase – the triggering phase – can be characterized as contingent. Different alternatives are competing in a market and it is not foreseeable which one will prevail. At the core of the first stage are triggering events, sometimes called a “small event”. Such critical events do not correspond to pure randomness: they are decisions taken for distinct reasons but without knowing the far-reaching consequences. Phase II: At the core of the second phase are self-reinforcing mechanisms, in particular increasing returns (Arthur 1994). Positive feedback mechanisms multiply initial decisions (critical events) in favour of one solution. Possible alternative standards (e.g. subtitling) are increasingly put to disadvantage over time. So, once a standard gains a head start positive feedback tends to increase the returns dramatically and favour a single alternative (Arthur 1989, p. 116). Phase III: After a while alternatives tend to disappear; the dominant solution gets “locked- in” (David 1985). These conditions of rigidity or inertia constitute situations in which choices for alternatives to the dominating market standard become unfeasible (Sydow, Schreyögg and Koch 2005, p. 6) or highly unlikely. The model of path dependence is combined with the theory of habituation by Stigler and Becker (1977): In economic analysis behaviour is defined as habitual if past and present consumption are positively correlated. In the Stigler and Becker (1977) model consumption skills are the mechanism causing this correlation: Consumption of a specific good is accompanied by (incidental) acquisition and accumulation of complementary specific consumption skills that facilitate – and thus increase – consumption of this specific good in the future. In this case the basic unit of analysis is the individual consumer and his consumption of and exposure to foreign-language films. Consumers’ habituation in the case of language-transfer methods is the becoming of a relative rigid pattern of choice, biased to a specific language-transfer format. Its repetitive and rigid nature is brought about by the accumulation of a language transfer format-specific consumption skill portfolio that increases utility from – and in turn consumption of – the corresponding complementary specific language-transfer format. Design/methodology This research design is conceived as a historical single case study. The focus is on the German film market, the identification and analysis of the processes and historical events that lead to the prevalence of dubbing and the potential inefficiencies of dubbing. The single case study design serves the testing and application of the path dependence theory to the markets of cultural consumer goods. The data sources employed in the analysis were studies on film history and language transfer, consisting of monographies, academic-journal publications and industry journal articles. In addition data was gathered from current and historical film-industry statistics and surveys, current and historical consumer survey data, and journal archives. The volumes 1929 to 1939 of the (then) daily German-film-industry trade publication Film Kurier are used as a major source for the reconstruction of the historically critical years after sound film has been introduced and the identification of critical events. Further historical statistical data on the film industry in Germany was obtained from film-statistical handbooks. Current industry statistics were taken from various recognised official bodies and academic publications in the European Union. Additionally semi-structured expert interviews were conducted with executives in the film industry, primarily in Germany. Findings The adoption of dubbing in Germany actually constitutes a path dependent process. All major elements of path dependent process are given: Contingency in the film market with respect to language transfer in the early 1930s and triggering events in the political-economic realm (censorship policies, contingency laws, post-war allied film policies, use of double shooting) gave dubbing a head start in the market during Phase I. Self reinforcing mechanisms were identified. These propelled dubbing to domination during Phase II; these mechanisms were learning-by-doing effects, habituation and transaction costs dynamics and network effects. Then the market is found to be locked into dubbing and these self-reinforcing effects continue to cements dubbings domination in the market. This lock-in occurred in the Third Reich or at latest in the post-war period and still lasts until today. The origins of lock-in are to be found in consumer habituation that limits the leeway of action of film distributors and exhibitors. Additionally in the television market license arrangements limit the larger stations ability to employ subtitling freely. The lock-in to the dubbing standard constitutes a cost inefficiency compared to subtitling, particularly for small and medium sized film distributors. The lock-in to dubbing negatively affects cultural diversity in the film market. At last, consumption of 2 subtitled original versions of films and TV programmes promotes the acquisition of foreign language skills of the audience. Under the dubbing standard this does not occur. Therefore the dubbing standard constitutes inefficiency as increasing the populations foreign language skills is a desirable policy goal in Europe. [1] Arrow, K.J. (2004) “Path Dependence and Competitive Equilibrium”, in Guinnane, T.W., Sundstrom, W.A. and Stanford, W. (Eds.) (2004) History Essays on Economic Growth, Technology, and Demographic Change, Stanford University Press, 2004. [2] Arthur, W.B. (1989) “Competing Technologies, Increasing Returns, and Lock-In by Historical Events”, in The Economic Journal, Vol. 99, No. 394, pp. 116-131. [3] David, P.A. (1985) “Clio and the Economics of QWERTY”, in American Economic Review, Vol. 75, No. 2, Papers and Proceedings of the Ninety-Seventh Annual Meeting of the American Economic Association, (May, 1985), pp. 332-337. [4] Arthur, W. B. (1994) Increasing Returns and Path Dependence in the Economy, Ann Arbour: University of Michigan Press. [5] Sydow, J. Schreyögg, G. and Koch, J. (2005) “Organizational Paths: Path Dependency and Beyond”, Paper presented at the 21st EGOS Colloquium, June 30 – July 2, 2005, Berlin, Germany. [6] Stigler, G. J. and Becker, G. S. (1977) “De Gustibus Non Est Disputandum”, The American Economic Review, Vol. 67, No. 2., pp. 76-90.