Miramax - Competitors

Miramax Competition

Now Viewing Miramax's competition in: Motion Picture Production and Distribution (primary)

Recent Developments

More Digital Projectors Coming - Digitally produced films require studios to invest heavily in new production methods, but the investment is worthless if the film is shown to audiences without a digital projector. Some studios, such as DreamWorks, say that they can increase ticket prices, and thus revenue, if digital projectors are in place. To speed the industry's adoption of digital projection, studios are increasingly willing to help theaters with financing, as illustrated by Fox's recent agreement to help several theater chains finance the installation of digital projectors.

Studios Look Harder for Funding - Many sectors of the US economy are hurting due to an increasingly strict credit environment, and it's becoming harder for many movie studios to get credit and financing. Deutsche Bank, a major investment bank, says that it won't invest in film projects, a decision that directly impacts Paramount, which was set to receive $450 million in financing. Industry experts note that Deutsche Bank's decision illustrates a larger problem in the industry, and that some studios are being forced to look for investors in other countries.

Independent Film Market Struggles - While the struggling US economy may be partly to blame, industry experts say that other factors are causing the market problems of independent films. Major studios, such as Warner Bros. and Paramount, have recently cut the staff in their independent film units; experts agree that many other independent film companies are in trouble. One major reason for the difficulty is that, according to one industry insider, too many independent films are being made, flooding the market.

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. Although production work is labor-intensive, the value of the product results in high average annual industry revenue of $300,000 per employee.

Full Industry Overview For Motion Picture Production and Distribution

Motion Picture Production and Distribution Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US motion pictures and videos is forecast to grow at an annual compounded rate of 5.2 percent between 2007 and 2012.

Motion Picture, Video Growth Uneven

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.