FILM INDUSTRY

Your Starting Point (and also a good introduction!!)

“The film Industry is dominated by an oligopoly formed from the 6 major film companies. All are vertically and horizontally integrated meaning they control production and distribution of film and have many related businesses within each stage of the process of making material available for consumption, These companies are part of globalised multi media conglomerates able to exploit economies of scale and synergy to sell their films to a mass audience. Yet beneath this layer of dominance are a series of smaller, independent companies who are able to produce films (albeit in a different fashion) that offer a sense of challenge and diversity.”



ABOVE THE LINE


Costs are ‘direct’ and largely fixed – in other words they must be paid irrespective of what happens during the production. They refer to the fees for all the principal creators of the film and the cost of acquiring the original intellectual property (e.g. A successful novel, play etc.). Studio pictures are often expensive because of the fees paid to stars (actors, directors and writers).

BELOW THE LINE

Costs are indirect and refer to the goods and services purchased/hired as required for production activities – the ‘running costs’ of the production. The efficiency of the producer, director and crew during shooting and post-production can increase or reduce these costs.