ANALYSIS OF THE

GLOBAL FILM
INDUSTRY
MGNT6140F Strategic Management

Jan 24, 2011

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 Co-produced by:
Andy
Benjamin
Chiharu
Hester
Ryan
Vivek

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 AGENDA:
Part I: Background
-Definition
-Industry Structure
-Brief History
-Category of Films
-Box Office

Part II:
Industry Analysis - CAPRI

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 Brief Introduction of Film Industry
What is film industry?
Definition:

A) It involves in the creation and distribution of films as a

product;
B) It is a worldwide phenomenon, but some countries have
a greater role in production than others;

Source: WiseGEEK

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 Film Industry: World Wide Phenomenon

The major business centers of film

making are in the United States,
India, Hong Kong and Nigeria.

Source: Wikipedia

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 Brief Introduction of Film Industry
What is film industry?
Definition:

C) It generally employs a wide number of people directly

through production and distribution process, and it also
employs a large number of people indirectly because of
the money spent to produce films.

D) It is focused on films as a medium for entertainment, but

sometimes for educational purposes as well.
Source: WiseGEEK

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 Brief Introduction of Film Industry
What is film industry?
Structure:
The film industry consists of the technological and commercial
institutions of filmmaking. i.e.:
-- Film production companies
-- Film studios
-- Cinematography
-- Film production
-- Screen writing
-- Pre-production
-- Post-production
-- Film festivals
-- Distribution
-- Actors, film directors & other film personnel.
Source: Wikipedia

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 Brief History of Film Industry
• The first feature film ever made was in
‘Australia’ – The story of the Kelly Gang,
1906

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 • By 1911 other countries started making films.
• First studio in USA called the Nester Studio
founded in 1911.
• The famous Hollywood Sign originally read
"Hollywoodland." It was erected in 1923.

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 • First academy awards were started on May
16, 1929.
• Various prominent movie industries and
names
– USA – Hollywood
– India – Bollywood
– New Zealand – Wellywood
– Nigeria – Nollywood………..

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 Categories of Films
• Creative Type:
factual, contemporary fiction, fantasy etc
• Source:
book, play, original screenplay
• Genre:
drama, horror, documentary etc

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 Global Film Revenue
Distribution – Component Wise

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 Global Revenue Distribution -
Regional

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 Industry Analysis
• C - Industry Competition (5 Forces Model)

• A - Maturity

• P - Growth and Future of the Industry

• R - Regulation

• I – Importance of the Industry for our Firm

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Competition

5 Forces
Model
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 Competition
Bargaining Power of Suppliers
• Studios-low
• Actors-high
• Directors-medium high
• Funding/investors/sponsors–high

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 Competition
Bargaining Power of Buyers
• Distributor (movie theater, video, VCD,
DVD, internet): High
• End Consumers: High
• Copy right merchandise manufacturers/
branded goods/ licensee: Low
• Promotion <commercials, PR, advertising>
Awarding institutes, TV channels: Low

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 Competition
Threat of Substitutes
• All kinds of entertainment: gaming, live
sports, TV, amusement parks, concerts,
internet ): High

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 Competition
Threat of New Entrants
• Low – high barrier to enter-high funding ,
reputation, know-how, regulations
• Increasing-technology is easier and cheaper
• Increasing-more technicians from gaming
industry
• Increasing-more acceptance on niche products
• Increasing-Internet makes distribution easier

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 Competition

Industry Competition and Rivalry

• High
• Sony, Walt Disney Company, Time
Warner, and News Corporation represents
26.2 percent of the industry.

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 Potential - Global Films
Entertainment Market by Region

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 Potential - Global Filmed Entertainment
Market by Components

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 Age(“Maturity”) of Industry
sales size Potential growth rate:
medium 3.2%
(in 3-5years)

Potential growth rate:

developed
high 7.2% country
(in 3-5years)

developing
country

stage

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 Regulation
• Censorship - Cutting
Reasons: ethic, military, political, company
• MPAA(us) - Rating System

• Screen Quota
a minimum number of screening days of
domestic films in the theater each year to
protect the nation’s films

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