Motion Picture Production & Distribution
Brief Excerpt from Industry Overview Chapter:
Companies in this industry produce and distribute motion pictures. Major companies include the big US-based studios Disney, Fox, Paramount, Sony Pictures, Universal, and Warner Bros. Newer, but increasingly significant, entrants in the field include streaming services Netflix and Amazon. Outside the US, major companies include Reliance Entertainment of India, Toho of Japan, and Village Roadshow of Australia, as well as Wanda Film, the movie production operations of China's Wanda Group.
Consumer spending drives demand. The profitability of individual companies depends on creativity, marketing, and distribution. Large companies often have the advantages of attracting key actors and directors, a permanent staff of technical employees, and wide distribution networks. Small companies can compete successfully, despite lower budgets, by creating movies that appeal to niche audiences. The US industry is concentrated: the 50 largest companies account for about 80% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Licensing of rights for exhibit, broadcast, renting, and other distribution of motion pictures accounts for about 35% of industry revenue; other products include commercials, music videos, special features, and post-production and technical services. Some companies sell merchandise or earn fees from licensing brand names to third-party manufacturers. Distribution of previously released products is through theaters; wholesalers and retailers; network, local, cable, and satellite TV; the internet; and other distributors.
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