Motion Picture Production & Distribution

Motion Picture Production & Distribution

Brief Excerpt from Industry Overview Chapter:

Companies in this industry produce and distribute motion pictures, videos, television programs, or commercials. Major companies include Fox Corporation, Paramount Pictures, Sony Pictures, Universal Pictures, Walt Disney Studios, and Warner Bros, as well as streaming services Amazon and Netflix (all based in the US). Outside the US, major companies include Reliance Entertainment (India), Toho Studios (Japan), Village Roadshow (Australia), and Wanda Media (China).

COMPETITIVE LANDSCAPE

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 rights to broadcast television account for about 40% of industry revenue, followed by licensing rights to broadcast feature films for about 20%, and licensing rights to broadcast feature films to other markets for about 15%. Not classified products and services account for about 10% of the industry revenue, and licensing to distribute audiovisual works account for about 5%. 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.