The film industry

The film industry

15 marks, industry question. Audience is not tested. The two films that we will look at are Shang-Chi and Snow White.

Hollywood is Americas film industry, and is the most important in the worlds film production. The USA is bigger than the film industries of China, Japan, the UK, and India.

The biggest companies are getting bigger and buying out their rivals. The industry is dominated by sequels and repetitions of franchises.

The big 5

1. Disney - Marvel - Pixar - Disney XD - National Geographic - Disney Jr
2. Warner Bros -  Cartoon Network
3. Paramount - MTV
4. Universal - Hulu
5. Sony - Columbia

Horizontal and Vertical integration

Vertical integration - Buying out all companies at all levels of production.

Disney+ is a classic example of vertical integration. Previously, Disney would have had to make a deal with Netflix; thanks to vertical integration, they no longer need Netflix. 

Horizontal integration - Buying out competing companies in the same industry.

Risk

Risk is particularly high in the cultural industries because of the difficulty in predicting success, high production costs, low reproduction costs and the fact that media products are 'public goods' - they are not destroyed on consumption but can be further reproduced. This means that the cultural industries rely on 'big hits' to cover the costs of failure.

As long as Disney+ churns out big IPs such as Loki, The Mandalorian, Wandavision to obtain subscriptions from its users, it pays for their failures, so that no matter what they do, they do not lose money. Disney has ruthless copyright, and will make anyone who uses their media pay the price. Disney used to artificially limit their supply of films through Vault Disney, which would allow them to drive up the demand of their products as well as raising the price; this gave the impression that Disney was precious to many.

The Daily Mail publishes over 2,000 articles online a day. Most fail spectacularly, but all they need is two or three big hits to make up for their failures, and turn a profit.

Producing a film

1. Development
2. Pre-production
3. Production (For a low budget film, production is the quickest process.)
4. Post-production
5. Distribution




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