Motion Picture Production & Distribution
Companies in this industry produce and distribute motion pictures, videos, television programs, or commercials. Major companies include Fox, 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 (Japan), Village Roadshow (Australia), and Wanda Media (China).
Globally, the overseas box office accounts for more than 80% of the industry revenue or about $16.8 billion, according to the Motion Picture Association of America (MPAA). The Asia/Pacific region accounts for the greatest share of global movie box office revenue followed by the Europe/Middle East/Africa region and Latin America and then US and Canada, with Latin America accounting for the remainder.
The US motion picture production and distribution industry includes about 14,400 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $66 billion.
The top motion picture studios are generally part of larger media companies. Most companies in the industry engage in both production and distribution of motion pictures; about 350 US establishments are solely distributors. Production and distribution of television programs is included in the industry but discussed more fully in a separate profile.
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.
Motion pictures compete for consumer time and disposable income with other forms of leisure activity, including sports, hobbies, concerts, amusement parks, museums, and zoos. Companies in the industry may also compete with other producers of media and information, such as publishing, music, video games, and internet content. Internet streaming companies are also producing original content to attract new subscribers and retain existing ones.
Products, Operations & Technology
Licensing of rights to others to distribute audiovisual works account for about 40% of industry revenue; followed by licensing rights to distribute motion
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms