Paramount Home Entertainment - Competitors

Paramount Home Entertainment Competition

Now Viewing Paramount Home Entertainment's competition in: Motion Picture Production and Distribution

Recent Developments

NY Proposes Stiffer Law to Fight High Piracy Rate - New York's Attorney General (AG) has proposed stiffer legislation to fight the illegal copying, distribution, and sale of copyrighted movies and live productions. The state's proposed Piracy Protection Act elevates infractions to a Class A misdemeanor and repeated offenses to a felony. Research indicates that over 50 percent of illegally recorded movies are filmed in New York, according to the AG's office.

US Movie Production Employment, Wages Decline - Movie production employment and wages decreased during first quarter 2008 compared to a year ago. US employment in motion picture and video production fell 1.9 percent in March 2008 from year-earlier levels and wages declined 4.5 percent. In contrast, average annual employment rose 0.3 percent in 2007 and wages increased 3.3 percent.

Asia-Pacific Region Investigates Over 36,000 Movie Piracy Cases - </strong>The international Motion Picture Association (MPA) cites a study that finds that its member studios lost $6.1 billion in 2005 due to illegal movie piracy. About 21 percent of the losses were the result of piracy in the US, and just less than 20 percent were from piracy in the Asia-Pacific region. MPA reports that its Asia-Pacific region investigated over 36,200 cases that resulted in over 10,000 legal actions in 2007.

Strike Affects TV Production Business Model - The three-month Writers Guild strike that ended February 2008 contributed to changes in TV program production that analysts predict could have long-term effects. Only half the typical number of pilot shows had received commissions as of May, according to <em>Variety</em>, leading networks to find alternatives for getting material ready to air. Some networks have reduced their total number of pilots, taken scripts straight to series, and increased reality and sponsor-branded entertainment shows. These approaches bypass the costly commission process and reduce production costs.

Summer Series Extend Viewing Season - Broadcast TV networks are following the lead of cable TV by extending the conventional autumn-through-spring season for original scripted shows. For summer 2008, CBS has two new scripted series, "Swingtown" and "Flashpoint," during months that typically feature reruns and reality shows. NBC is launching an original series in summers 2008 and 2009. Fox continues to either extend scripted programs beyond the season or start them early.

Consumer Prices Rise for Pay TV - Viewers are paying higher prices for pay TV. US consumer prices for cable and satellite TV and radio increased 3.6 percent in March 2008 from year-earlier levels. Average annual prices increased 19 percent in five years. Price changes reflect the market's willingness to pay for TV services.

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.