This website uses cookies to ensure you have the best experience. Learn more

American Film Industry; Oligopoly Essay

1310 words - 6 pages

The American Film Industry - A Model of Oligopoly
Kim R. Williamsbernard
Virginia College, Online

The American Film Industry - A Model of Oligopoly

Introduction
The American Film Industry or Hollywood refers to the successful oligopoly economy of the major Hollywood studios in the 1920s to the 1940s. The term implies that it studios, so the production of films constituted the decisive factor in the economic system. But the concept of system refers here to large companies, production, film distribution / sales and film screening at this time controlled.

Vertical Integration
The actual switching was indeed for most firms in New York City, but the company has ...view middle of the document...

Only in the largest American cities competed for the 'Big Five' with each other directly. Otherwise, the country was divided into areas where only one company was talking cinema. A film that was not given access to these cinemas could have no great popular success (Anderson, 1994).
Also integrated into the oligopoly was the "Little Three" Columbia Pictures , Universal Pictures and United Artists , but with less influence, because they did not have its own movie theater.
An independent production companies, for example appeared Republic Pictures and Monogram Pictures in appearance. Their main business was to "B-movies" to sell, which filled the theater program and it then usually in the "double" (double feature) with an elaborate "A Movie", produced by a major studio.
Together, it ensured the majors in the 1930s and 1940s for 90% of American film production and 60% of world production. The vertical integration of the functional areas (production, distribution and exhibition), the premiere took place in movie theaters, of course the oligopoly.

The Oligopoly of the MPPC
The first attempt to destroy free competition and an oligopoly to form was operated by means of patents. MPPC tried to impede the access of foreign companies by licensing fees through this difficult competition. In order to implement the system, should also be a high market penetration. At its height, the MPPC controlled via license most of the cinemas. Also, access to film footage was not possible without a license, as Eastman Kodak signed an exclusive contract was signed with the MPPC.
The Edison Trust attacked above all the points 2-4. The system finally failed with the cancellation of Edison's patents relating to the Supreme Court of the United States, but its decline had begun much earlier (Anderson, 1994).

The Movie Theater
The cinemas were a hierarchy of agreements according to their importance. In Los Angeles or New York had its premiere films in general and then underwent a period of time only in the local movie palaces ("first run"). In other major cities were then the largest centrally located cinemas, the second series of shows ("run second") instead. Then a movie was also in the smaller theaters in the neighborhoods ("Nabes") and finally, in fourth place in the rural areas and in seedy theaters ("grind houses"). Between the individual "runs" in each case there was a time, usually a month in which the film was not shown. The status of a movie theater in the wake of the tiered screening period was determined from specific geographical areas and territories.
Independent cinema operators were able to show you various Hollywood movies at will, but had to film an entire package "en bloc" book. In order to offer a great program and can earn profits, the cinemas were forced to book movie packages, even if this was often, buy a pig in a poke - especially since some films had to be booked before they were shot. An...

Other Papers Like American Film Industry; Oligopoly

Film Industry in Viet Nam Essay

644 words - 3 pages Entertainment industry is very concerned to develop in many countries. Because it can bring superprofit to the government and contribute to introduce to the tourists about their history and culture .Today, while film industry of many countries in the world are more and more developing, Viet Nam is still backward. Compared with other ASIAN countries such as Thailand, Singapore, Philippines…,the investment of Viet Nam in film industry is very

Pricing Strategy Essay

1885 words - 8 pages is the case with Visa operating in the credit payment industry. There are very few credit card companies. Visa has five main competitors, which are MasterCard, Discover, JCB, Diners Club and American Express. According to Samuelson and Marks (2012), entry into the oligopoly market can be high or moderate. These six credit card payment companies have been dominating the industry for years, so it is safe to conclude entry into this market is not

Airline Industry - A Study

2269 words - 10 pages to other businesses like banks, restaurants, and insurance companies. Customers are not given a product in return for the money they spend. There is no inventory created and stored for sale at some later date. MARKET STRUCTURE The American airline today is an oligopoly; with four major carriers dominate the industry, with a combined market share of 61.2%. These airlines are American Airlines, Delta Air, Southwest Airlines, and United

The Big 6 Media Conglomerates

604 words - 3 pages The holdings of the Big 6 Giants clearly prove that the media industry is dominated by a few firms in oligopoly. I am sure that most people are unaware of the fact that only a few conglomerates dominate mainstream media. Nonetheless, it is clearly true—the nine current media conglomerates together own more than 90% of the media market. In determining how oligopoly in the media industry affects the messages that people receive, it’s

Business Proposal

1468 words - 6 pages reinvent its products in order to remain the dominate firm in the building block toy industry. Business Model of LEGO According to Essentials of Economics there are four types of business models; Pure Competition, Monopolistic Competition, Oligopoly, and Pure Monopoly (McConnell, 2009). * Pure Competition: Involves several firms producing of standard products. As an example of a pure competition product would be rubber bands, copy paper, and

Forms of Industrial Organization

1965 words - 8 pages they dominate the market. In regard to non-pricing strategy, Microsoft’s innovative approach on software development puts them well ahead of the competition. Competitors such as the Linux and Macintosh systems are only substitutes. The service and high performance of Microsoft’s Windows programs far exceed the competition. Oligopoly Structure The airlines industry has long been known as an oligopoly. In recent years even more mergers

The Chinese Music Industry’S Plight And Future

4461 words - 18 pages the purpose of this essay, “Chinese music” shall not include those by Taiwanese or Hong Kong companies since they do not contribute to the Chinese national GDP. “Big Data” startup entrepreneur Ailuo Wang said during an interview, “With no money, there is no industry” (Song). Creative industries such as film and music must find routes to sustainable profit before they can begin expanding on their creative fronts. This is why the Chinese music

Akira Kurosawa

1815 words - 8 pages decades. His contributions to the Japanese film industry and film in general are more than apparent. Not the only Japanese cinematic giant, but undoubtedly the most famous and revered in the West, Kurosawa has made exemplary films of various genres: historical, Samurai, and contemporary (Cohen-Shalev, 2008). Kurosawa entered the Japanese film industry in the 1930s with the film Sanshiro Sugata. Kurosawa's maiden directorial effort, Sanshiro Sugata

Company Profiles - Distribution Channel

1872 words - 8 pages Picture) From the early 1920s through the early 1950s, the American motion picture had evolved into an industry controlled by a few companies, a condition known as a "mature oligopoly". The film industry was led by eight major film studios. The most powerful of these studios were the fully integrated Big Five studios: MGM, Warner Brothers, 20th Century Fox, Paramount Pictures, and RKO. These studios not only produced and distributed films, but also

Business Environment

5627 words - 23 pages management and sustainability of the companies in which they invest. [4] Anglo American has empowered each of its key operating businesses. These businesses manage within the context of its own industry within a framework of principles – The Good Citizenship Business Principles. This communicates its commitment to its stakeholders. It states that the Company seeks to make a contribution to the economic, social and educational wellbeing of the

Reel Injun

1025 words - 5 pages their culture and reinvented it in a way in which we pleased. The white people of Europe and the United States of America have always been against the “Red faces” throughout time and film has been the pivotal way in which the world sees this. Native Americans in film have been represented as the bad people whether it is in Disney animations or in documentaries and in each film it ends with the American white colonialized people taking over. The

Related Essays

Global Heat Resistant Release Film Industry 2015 Market Research Report

1879 words - 8 pages analysis, investment feasibility analysis, and investment return analysis. The report includes six Parts, dealing with: 1.) basic information; 2.) the Asia Heat resistant Release Film industry; 3.) the North American Heat resistant Release Film industry; 4.) the European Heat resistant Release Film industry; 5.) market entry and investment feasibility; and 6.) the report conclusion.” Part I Heat resistant Release Film Industry Overview

Hollywood Film Essay

1758 words - 8 pages Introduction Our analysis of Hollywood film industry show us the industry as an oligopoly and we decided to analyse its characteristics through the “structure conduct performance of this industry” (SCP) Industrial concentration has been a concern for economics studies, while analysing Hollywood film industry we found a significant amounts of concentration with the largest companies that give them an amount of monopoly power that they use on

Please Read Chapter 10 And Answer The Following Questions:

1226 words - 5 pages be identical can also be differentiated by support services. This is quite common in retail trade. Location * Spatial differentiation a consumers choose a firm based on transportation costs, which prevent switching for relatively small differences in price. 8.  In the news…Please click on the following and answer the question belowhttp://ethemes.pearsoncmg.com/0321445635/article_17/index.html  The American automobile industry is often

Beer Wars Essay

545 words - 3 pages Beer Wars is documentary about the American beer industry and how the 3 largest US breweries try to drive out the competition. This documentary covers how lobbyists are used to control the beer market and drive out smaller breweries such as Dogfish Head Brewery, Stone Brewery, and Moonshot: all producers of craft beer. The documentary describes how a 3 tier system was put into place to separate the powers of selling beer and prevent a monopoly