The Hollywood Film Industry (Case Study)
Q1. Given the forces on
the Hollywood movie industry is it likely we will see a decrease in the
production of regional and U.S.-centered movies, or will small independent
movie producers pick up a higher share of the domestic U.S. market? Please
explain.
The
global push has changed how Hollywood does business. More than ever, studios
tailor marketing campaigns to other countries taste and make casting decisions
with the international audience. Many industry insiders
have argued that during the 1990s, and possibly even later, the U.S. market has
been over-screened, that it's the total number of theater screens was
disproportionately high given the size of its movie-going population, their
frequency of going to the movies, and the supply of movies. Therefore, it's
expected that there will be a decreased number of regional movies produced, and
small independent movie producers may see it as an opportunity for them to
produce US-centered movies, as they don’t have the ability to produce
global-wide movies and the local market will be a good focus for them to sell
their movies.
Q2. What alternatives could movie
producers develop to help combat the piracy of first-run movies and follow-on
DVD and Internet releases?
Hollywood
loses billions of dollars a year on illegally sold copies of movies. The losses
are impossible to calculate accurately, of course, since it’s unclear how many
of the people who download copies over the Internet. A
large portion of piracy occurs in the distribution channel that is before the
film is stamped on the DVD. Hollywood itself is the source of large
quantities of the leaks of music and movies because people who have direct
access to the original masters of the media make copies of them before any
anti-piracy technology is even applied. Therefore,
studios and theatre owners are eager to find ways of safeguarding their
intellectual property. Hollywood should take extreme steps to stop their movies
from being pirated by obtaining a court order that restrains thousands of
websites from making available copies of their films, a move which the company should
approach to reduce piracy regionally and internationally.
Q3. How would you prioritize which
nations to expand distribution into if you were working for a major Hollywood
movie studio?
Hollywood has to be careful.
It can’t afford to reinforce old stereotypes if it wants to make money in the
international marketplace. Movies have to be made as sensitively as possible
and not offend any particular country.
According to recent figures from the
Motion Picture Association of America almost 70 percent of the studios’ annual
revenue from box office now comes from international markets. Hollywood movie's content
has been shaped accordingly. They’re making films that have fairly universal
ideas and themes, they’re not really culturally specific. A good example might
be the released action film Fast & Furious which has already gained in
almost twice as much revenue overseas as it has in the US.