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Motion Picture Production and DistributionPublished by: First Research, Inc. Published: Oct. 12, 2009 - 10 Pages Table of Contents
AbstractThe US motion picture production and distribution industry includes about 11,000 companies with combined annual revenue of $33 billion. Major companies include Disney, FOX, MGM, Paramount, Sony Pictures, Universal, and Warner Bros. The industry is highly concentrated: the 50 largest companies account for about 80 percent of industry revenue.The top motion picture studios are generally part of larger media companies. Most companies in the industry engage in both production and distribution of motion pictures; about 500 firms are solely distributors. COMPETITIVE LANDSCAPE Consumer spending drives demand. The profitability of individual companies depends on creativity, marketing, and distribution. Large companies often have the advantages of long-term contracts with key actors and directors, a permanent staff of technical employees, and wide distribution networks. Small companies can compete successfully by creating marketable movies, often for niche audiences, on low budgets. Although production work is labor-intensive, the value of the product results in high average annual industry revenue of $300,000 per employee. PRODUCTS, OPERATIONS & TECHNOLOGY The motion picture industry produces mainly first-run movies and secondary releases, distributed first through theatres and later on various media through a variety of commercial outlets. Secondary releases, mainly on DVD through wholesale and retail channels, contribute 50 percent of industry revenue, while first-runs account for about 20 percent. Other products include commercials, music videos, special features, and post-production and technical services. Some companies sell merchandise or earn fees from licensing ... Get Full Details About This Report >> |
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