Langues appliquées - Anglais : Economie, gestion, droit, AES - 4e - 27

movie macroeconomics

But because movies - each uniquely designed and packaged - are not stamped out on cookie-cutter
assembly lines, the economic structure is somewhat different. Here, instead, we find a combination of
large oligopolistic production/distribution/financing organizations regularly interfacing with and being
highly dependent on a fragmented assortment of small, specialized service and production firms.
Exhibition
In the United States, exhibition is dominated by several major theater chains which operate
approximately 25,000 of the best-located and most modern urban and suburban (e.g., shopping mall)
movie screens, with most of the other 15,000 or so older theaters still owned by individuals and small
private companies. As such, the chains control about 60% of the screens, but they probably account
for at least 80% of the total exhibition revenues generated.
Production and distribution
Theatrical film production and distribution has evolved into a multifaceted business, with many
different sizes and types of organizations participating in some or all parts of the project development
and marketing processes. Companies with important and long-standing presence in both production
and distribution, with substantial library assets, and with some studio production facilities have been
collectively and historically known as the "majors". These companies produce, finance and distribute
their own films, but they also finance and distribute pictures initiated by the so-called independent
filmmakers, who either work directly for them or have projects picked up after progress towards
completion has already been made.
Many smaller production companies also have significant distribution capabilities in specialized
market segments and can occasionally produce and nationally distribute pictures that generate boxoffice revenues large enough to attract media attention. The enduring presence of so many different
production and service organizations underscores the entrepreneurial qualities of this business. The
many "independents" have been a structural fact of life since the industry began, and they add
considerable variety and verve to the filmmaking process.
Production starts and capital
Without access to capital, no project can get off the ground. It should thus come as no surprise to
find that the number of movies started in any year may be sensitive to changes in interest rates and the
availability of credit. Moreover, because the industry ordinarily depends on a continuous flow of cash,
when credit is restricted by the Federal Reserve Bank, sources of funding for movie projects rapidly
dry up. No matter what the monetary environment, however, in theory (but not always in practice) only
the worthiest projects are supported.
Exchange-rate effects
Between 45% and 65% of gross rentals earned by the majors usually are generated outside the
so-called domestic market, which includes both the United States and Canada. Swings in foreigncurrency exchange rates may therefore substantially affect the profitability of U.S. studio/distribution
organizations.
Trade effects
Although every region of the world produces and distributes film and television programming, the
United States has long been the dominant exporter, with a net trade balance for these products of at
least $6 billion a year. This domination can be explained as a function of historical happenstance,

Table des matières de la publication Langues appliquées - Anglais : Economie, gestion, droit, AES - 4e