Motion Picture Production & Distribution
Companies in this industry produce and distribute motion pictures. Major companies include the big US-based studios Disney, Fox, Paramount, Sony Pictures, Universal, and Warner Bros. Newer, but increasingly significant, entrants in the field include streaming services Netflix and Amazon. Outside the US, major companies include Reliance Entertainment of India, Toho of Japan, and Village Roadshow of Australia, as well as Wanda Film, the movie production operations of China's Wanda Group.
The Asia/Pacific region accounts for the greatest share of global movie box office revenue, at about 40%, followed by the US and Canada at nearly 30% and the Europe/Middle East/Africa region at about 25%, according to the Motion Picture Association of America (MPAA). Latin America accounts for the remainder. Global box office grew just 1% from 2017 to 2018. China, with a 12% increase in box office dollars, was the primary driver of growth, offset by declines from Argentina (-41%) and Brazil (-22%).
The US motion picture production and distribution industry includes about 14,600 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $65 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 for exhibit, broadcast, renting, and other distribution of motion pictures accounts for about 35% of industry revenue; other products
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms