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Home > Consumer Products > Consumer Products & Retail > Entertainment
Motion Picture Production and Distribution
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| Published Date:
September 2008
Published By:
First Research, Inc.
Page Count:
10
Order Code:
R3470-1827
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The US motion picture production and distribution industry includes about 11,000 companies with combined annual revenue of $33 billion. Major companies include Disney, Sony Pictures, MGM, Paramount, FOX, Universal, and Warner Bros. The top motion picture studios are generally part of larger media companies. The industry is highly concentrated: the 50 largest companies account for about 80 percent of industry revenue. Most companies are small and privately held. Most of the industry, including many independent firms, engages in both production and distribution; about 500 firms are solely distributors.
COMPETITIVE LANDSCAPE
Consumer spending drives demand. The profitability of individual companies depends on creativity, marketing, and distribution. Large companies often have the advantages of long-term contracts with key actors and directors, a permanent staff of technical employees, and wide distribution networks. Small companies can compete successfully by creating marketable movies, often for niche audiences, on low budgets. Although production work is labor-intensive, the value of the product results in high average annual industry revenue of $300,000 per employee.
PRODUCTS, OPERATIONS & TECHNOLOGY
The motion picture industry produces mainly first-run movies and secondary releases, distributed first through theatres and later on various media through a variety of commercial outlets. Secondary releases, mainly on DVD through wholesale and retail channels, contribute 50 percent of industry revenue, while first-runs account for about 20 percent. Other products include commercials, music videos, special features, and post-production and technical services. Some ...
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