Free Essay: An Analysis of the Movie Industry

Published: 2023-01-26
Free Essay: An Analysis of the Movie Industry
Type of paper:  Research paper
Categories:  Advertising Social activities Movie Strategic marketing
Pages: 7
Wordcount: 1845 words
16 min read

The American movie industry has had a global dominance; in recent years, there have been many changes in profits, the number of film producers, and even the method of distribution. Effect on the operations means that there are less profits and a lack of proper understanding of how the industry is currently operating. By analyzing the major reasons for a film's success, the paper can portray the current position of Hollywood, the impact of technology, and the current changes in the modes of operations. It concludes by stating how Hollywood can leverage on its strengths to bring a turnaround in its dwindling revenues.

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While Hollywood remains to be the biggest global movie producer o the globe, producing a movie and being successful remains a challenge to many players. Many movies have been called off before shooting as the thought that they will not be successful holds the producers back. In the recent years, there has been much advancement in how movies are produced; starting from the script to the final cast, there has to be much consideration on the potential audience and the ultimate success of the movie. Current data shows that there is much competition in regards to the ratings, total revenues, and the number of viewership. For producers, the time when the movie is released or even the actors used play an essential role in the success of the film. Thus, the question of what is the reason behind the success of Hollywood movies arises. The paper will examine various factors such as revenue, ratings, keywords release dates, and the castors to determine the success of movies in the Hollywood movie industry. Recommendations and conclusions will provide an overview of the entire industry and the best way forward.

Current operations

Recently, there have been many startups that want to make use of the established brand name to grow themselves and make it big in the movie industry. The adoption of AI as a wise producer and its licensing of historical data show the new company's ability to perfect its performance compared to current players. The strive to better future movies entails uncovering hidden patterns and identifying of best actors to play a movie is an essential role in ensuring that the projected goals are achieved.

Through artificial intelligence, it is possible to have several inputs such as movie genre, key words, projected release date, and even actors, to determine the possible level of success of the movie. With there being a high level of competition in the market, it is essential to properly plan to determine whether it is ideal for producing a movie. Artificial intelligence makes use of the existing factors to help determine the level of success of a given movie. By modifying the various inputs, it is possible to determine the optimum period to release a movie.

Emerging issues such as the need to be diverse, new outlets to air the movies and other players, including Bollywood and Chinese filmmakers, are posing a new challenge to the traditional industry. For instance, the China cinema has expanded significantly over the past few years; this has coerced Hollywood to export revenue sharing movies to China to gain extra box office revenues. With the onset of globalization and the traditional domination in the film, the market is challenged. In China, Hollywood movies face cultural and political challenges while expanding. The Chinese cinema market is well established coming second to Hollywood at $8.6 billion in 2017 (Song, 2018). The expansion rate of the Chinese cinema market is unrivaled, with an estimated ten screens being added to the market every day (Song, 2018).

As a way to the future, changing current operation strategies is an ideal way into the future. Creation of diversity remains to be a major task to be accomplished. The need for higher ratings from audiences and the ability to reach a wider market has been shown to contribute to the much-accepted movies. New approaches that aim at reducing the existing stereotype and bringing about diversity are being taken as a measure to help improve the audience perception and help maximize sales.


American produced films tend to have a global appeal due to their long term domination in the industry. For decades, American film producers have been creating content that becomes generally accepted due to the wide audience, technological advancement, and marketing capability. The American film industry has, however, failed to dominate the Chinese market due to several factors such as the language barrier and the Chinese independent production capacity. In the paper by Song (2018), titled "Hollywood movies and China: Analysis of Hollywood globalization and relationship management in China's cinema market." it is evident that the expansion of Hollywood movies into the Chinese market is limited. Issues such as stacked up release, short promotion periods, and blackout periods are some of the factors that have hindered the expansion of the North American movies into the Chinese market.

The onset of globalization has enabled penetration into other markets much easier, for instance, the European, South American, Asian and African markets are emerging as great avenues to increase the revenue and ensure the success of all players. With over a billion people, the Chinese market only allows a 34% quota revenue sharing for foreign firms (Song, 2018). A movie import quota is a step intended to ensure that the domestic firm is protected. From a different perspective, it is estimated that removing the movie quotas placed by the Chinese governments will help the Chinese movies get a global outlook. Renegotiation of the current terms means that it will be possible for more films to be produced as there is a potential higher market.

Currently, the current market share is curtailed; the number of studios that are open, and the resultant revenue is low due to the upper curtain placed on global movie firms operating in China. Song (2018), states that Hollywood has been working to see that the amount of revenue gained from the Chinese market goes up to 28%. With the current censorship and other players including Indians trying to get a share of the Chinese market, it is evident that the major players have little chance of dominating the industry as they did years ago (Song, 2018). With a desire to get a higher share of the box office revenues, it is evident that international firms have a long way to go before they can get a significant share of China market. Currently, there is much trade tension between the United States and China; this means that there is a possibility that the prospective market will not be fully opened as many would expect.

Another challenge facing the movie industry is the diversity issue. King (2016), argues that being inclusive has been a top priority for movie producers; however, it has not attained the intended purpose as the issue of stereotyping has always emerged. King, (2016) states that the movie industry has not been a clear depiction of the society; it either exaggerates or diminishes some essential areas that are of concern to society. For instance, there is the depiction on the failure of journalism, financial issues, and even insensitivity. The paper by Richeri, (2016) titled "why more Oscar diversity won't solve Hollywood's whiteness problem" is a perfect depiction of the diversity issues at the American movie industry. For instance, all movies depicting the global financial recessions focus on the American nation. Movies like The Big Short, Wall Street, Money Never Sleeps are a clear depiction that despite the desire to appear more diverse, the content is still tied down to the American culture. Systematic failures should include the impact that they had on both the local and global audience to create mass appeal.

As per King (2016), the future and success of the movie industry are pegged on the ability to use emerging technologies to reduce the cost of production and estimate what will be accepted by the masses. Moreover, technology promises to level the playing field and thus more opportunities for new and better players who will be able to tell new, diverse and original stories that may long have been ignored by the big players. King (2016), concludes by stating that diversity will be essential in helping reduce the impact of the big players and influence and perception created by the Hollywood awards.

Hill and Kawashima (2016) explore the impact of film policy in a globalized cultural economy. To them, film production is devoted to the dynamic economic and technological aspect in which film production happens. To them, the policy responses have been responsible for the pursuit of cultural objectives that will shape the global film industry. To them, the movie production industry is affected by several factors, including the general economic position of the nation, technology and political shifts and even independent events affecting policy adoption. Hill and Kawashima (2016) reveal that while the policyholders and governments have been directed to adapt to economic and technological changes brought by globalization, they also reveal the variations in creation of film policy creating tension between economic, cultural and personal objectives.

The past two decades have witnessed many revolutions in the creation and distribution of films and films content. Globalization and technological advancements have helped American film makers establish their position as the dominant players in the market while becoming more international. On the other hand, regional film producers such as the Indian and Chinese producers have also received a fair share of the market. They have re-emerged to form new collaborations bringing about more complexity from the production to consumption stage. The movie industry has faced new changes, including shooting, distribution, and the exhibition. The use of digital screens has transformed the mode of delivery, posed new economic and cultural challenges and improved the level of thinking on how content is to be conceived and implemented (Hill and Kawashima, 2016).

Richer (2016), examines the global film market, regional problems, the media, and China. One thing noted is that China is gaining more global popularity in the movie industry as compared to other players. As per Richeri (2016), Chinese companies and their associates can make more business abroad every year as compared to the European and American filmmakers who seem to be flat with an ever-increasing production cost. With both entities making efforts to venture into the Chinese film market through cooperation with Chinese firms, it is evident that they still have a long way to go since the strategies adopted are not fully compatible with Chinese regulations. For European firms, they still have a lot of issues at the home market including domination by Hollywood movies, few financial resources and lack of blockbusters that will push their content into the Chinese box office. However, European film producers are a great source of cultural and creative competencies, but they do not meet the requirements needed for the Chinese market.

Ibbi (2013), in his article titled "Hollywood, The American Image and The Global Film Industry," the Hollywood movie industry is described as an octopus spreading its tentacles across the globe. The North American movie industry is not n overnight success story; it has evolved gradually by overcoming several hurdles.

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