Motion Picture Production & Distribution Industry Overview

Excerpt from Motion Picture Production & Distribution Report

Companies in this industry produce and distribute motion pictures. Major companies include Disney, FOX, MGM, Paramount, Sony Pictures, Universal, and Warner Bros (all based in the US), as well as Spain's Promotora de Informaciones, Toho Co of Japan, and Danish firm Egmont International Holding.

Competitive Landscape

Consumer spending drives demand. The profitability of individual companies depends on creativity, marketing, and distribution. Large companies often have the advantages of long-term contracts with key actors and directors, a permanent staff of technical employees, and wide distribution networks. Small companies can compete successfully by creating marketable movies, often for niche audiences, on low budgets. The industry is concentrated: the 50 largest companies account for about 70 percent of revenue.

Products, Operations & Technology

Licensing of rights for exhibit, broadcast, and renting of motion pictures accounts for about 35 percent of industry revenue; other products include commercials, music videos, special features, and post-production and technical services. Some companies sell merchandise or earn fees from licensing brand names to third-party manufacturers. Distribution of previously released products is through theaters; wholesalers and retailers; network, local, cable, and satellite TV; the Internet; and other distributors.