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MGNT6140F Strategic Management

Jan 24, 2011

ANALYSIS OF THE ANALYSIS OF THE GLOBAL FILM GLOBAL FILM

INDUSTRY INDUSTRY

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Co-produced by:Andy

Benjamin Chiharu Hester

Ryan Vivek

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AGENDA:

Part I: Background -Definition-Industry Structure-Brief History-Category of Films-Box Office

Part II:Industry Analysis - CAPRI

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What is film industry?

Definition:

A) It involves in the creation and distribution of films as a product;

B) It is a worldwide phenomenon, but some countries have a greater role in production than others;

Brief Introduction of Film Industry

Source: WiseGEEK

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Film Industry: World Wide Phenomenon World Wide Phenomenon

The major business centers of film making are in the United States, India, Hong Kong and Nigeria.

Source: Wikipedia

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Brief Introduction of Film Industry

What is film industry?Definition:

C) It generally employs a wide number of people directly through production and distribution process, and it also employs a large number of people indirectly because of the money spent to produce films.

D) It is focused on films as a medium for entertainment, but sometimes for educational purposes as well.

Source: WiseGEEK

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Brief Introduction of Film Industry

What is film industry?Structure: The film industry consists of the technological and commercial

institutions of filmmaking. i.e.:-- Film production companies-- Film studios-- Cinematography-- Film production-- Screen writing-- Pre-production-- Post-production-- Film festivals-- Distribution-- Actors, film directors & other film personnel.

Source: Wikipedia

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Brief History of Film Industry

• The first feature film ever made was in ‘Australia’ – The story of the Kelly Gang, 1906

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• By 1911 other countries started making films.

• First studio in USA called the Nester Studio founded in 1911.

• The famous Hollywood Sign originally read "Hollywoodland." It was erected in 1923.

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• First academy awards were started on May 16, 1929.

• Various prominent movie industries and names– USA – Hollywood– India – Bollywood– New Zealand – Wellywood– Nigeria – Nollywood………..

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Categories of Films

• Creative Type:

factual, contemporary fiction, fantasy etc

• Source:

book, play, original screenplay

• Genre:

drama, horror, documentary etc

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Global Film Revenue Distribution – Component Wise

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Global Revenue Distribution - Regional

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Industry Analysis

• C - Industry Competition (5 Forces Model)

• A - Maturity

• P - Growth and Future of the Industry

• R - Regulation

• I – Importance of the Industry for our Firm

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Competition

5 Forces Model

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Bargaining Power of Suppliers

• Studios-low

• Actors-high

• Directors-medium high

• Funding/investors/sponsors–high

Competition

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Bargaining Power of Buyers• Distributor (movie theater, video, VCD,

DVD, internet): High

• End Consumers: High

• Copy right merchandise manufacturers/ branded goods/ licensee: Low

• Promotion <commercials, PR, advertising>

Awarding institutes, TV channels: Low

Competition

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Threat of Substitutes

• All kinds of entertainment: gaming, live sports, TV, amusement parks, concerts, internet ): High

Competition

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Threat of New Entrants• Low – high barrier to enter-high funding ,

reputation, know-how, regulations• Increasing-technology is easier and cheaper• Increasing-more technicians from gaming

industry• Increasing-more acceptance on niche products• Increasing-Internet makes distribution easier

Competition

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Industry Competition and Rivalry

• High

• Sony, Walt Disney Company, Time Warner, and News Corporation represents 26.2 percent of the industry.

Competition

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Potential - Global Films Entertainment Market by Region

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Potential - Global Filmed Entertainment Market by Components

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Age(“Maturity”) of IndustryPotential growth rate:

medium 3.2%(in 3-5years)

Potential growth rate: high 7.2%

(in 3-5years)

developing country

developed country

stage

sales size

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Regulation• Censorship - Cutting

Reasons: ethic, military, political, company

• MPAA(us) - Rating System

• Screen Quota

a minimum number of screening days of domestic films in the theater each year to protect the nation’s films