The History of Film Industry

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Film Industry - the area of commercial activity concerned with the production and distribution of films.

--The technological and commercial institutions of film making--

  • Film production (how the product is made)
  • Distribution (how the product gets to the retailer)
  • Circulation (hoe the product is consumed by the audience)


--Other things to consider--

  • the studio system (Hollywood)
  • actors (star theory)
  • finance (funding -> box office takings)
How has media changed over time?

In the late 19th century, the first motion picture camera was created by a man called Étienne-Jules Marey, paving way for the film industry to flourish. By 1903, multiple silent (usually accompanied with a live orchestra) movies such as George Méliès' 'Le Voyage dans le Lun' had been created and viewed worldwide. Soon after the golden age of Hollywood in 1915, came technicolor, animation and Disney, which quickly began to dominate the film industry. This allowed more detailed, HD movies to be shown and reviewed by millions of people. In the modern century, the global box office is now worth $41.7 billion, with the film industry thriving with the help of  significant technological advancements.

Horizontal Integration - where an organisation develops by buying up competitors in the same section of the market (such as Disney)
Advantages
  • Increased differentiation
  • Increased market power (raise lots of money)
  • Ability to capture new markets
  • Lower cost of production
  • Quality Improvement (identify areas of improvement and continuously improve the product quality)

  • Low demand-side risks (diverse products)

Disadvantages
  • Antitrust Issues
  • Reduction in flexibility
  • Destroying value
  • Success or failure of a single product can determine the fate of the entire company.
Media Conglomerate - a company which owns numerous companies involved in mass media enterprises (such a Disney)

Cinephile - An avid watcher of films. Someone who consumes films with a discerning and critical mind.

Arthouse - Independent films. Often experimental with complex narratives and difficult subject matter.

Blockbuster - Films that are targeted to mainstream audiences for maximum overturn of profit.

Vertical Integration - When a company owns the supply chain. The limits costs and makes he process of distribution quicker.

Saturation Distribution - When a film is released in all cinemas to crowd out other films and create a cultural event.

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