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MGNT6140F Strategic Management
Jan 24, 2011
ANALYSIS OF THE ANALYSIS OF THE GLOBAL FILM GLOBAL FILM
INDUSTRY INDUSTRY
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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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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;
Brief Introduction of Film Industry
Source: WiseGEEK
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Film Industry: World Wide Phenomenon 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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Bargaining Power of Suppliers
• Studios-low
• Actors-high
• Directors-medium high
• Funding/investors/sponsors–high
Competition
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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
Competition
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Threat of Substitutes
• All kinds of entertainment: gaming, live sports, TV, amusement parks, concerts, internet ): High
Competition
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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
Competition
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Industry Competition and Rivalry
• High
• Sony, Walt Disney Company, Time Warner, and News Corporation represents 26.2 percent of the industry.
Competition
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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 IndustryPotential growth rate:
medium 3.2%(in 3-5years)
Potential growth rate: high 7.2%
(in 3-5years)
developing country
developed country
stage
sales size
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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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