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The American Film Industry 
Lesson Objectives: To be aware of the historical development of the American 
film industry, and the contemporary structure of the industry.
General Introduction 
1. For the exam you should be prepared to 
understand and write about the processes of 
film production, distribution, marketing and 
exhibition. 
2. The nature of audience consumption and 
the relationships between audiences and the 
film industry.
General Introduction 
• In addition, you need to know about: 
• the issues raised by ownership in the contemporary film industry; 
• the importance of convergence and synergy in production, 
distribution and marketing of films; 
• the new technologies that have been introduced in recent years at 
the levels of production, distribution, marketing and exchange; 
• the significance of proliferation in hardware and content for film 
institutions & audiences; 
• the importance of technological convergence for film institutions 
and audiences; 
• the issues raised in the targeting of national and British audiences 
by international or global film institutions; 
• the ways in which your own experiences of media consumption 
illustrate wider patterns and trends of audience behaviour.
General Questions 
• How do different films get produced and what is the 
‘production process’? 
• How do films get distributed and what does film 
distribution involve? 
• What does the exhibition of films involve? 
• How do audiences ‘consume’ films and how has this 
changed? 
• How does the film industry, and particular film 
production companies more specifically, attempt to 
develop the relationship between institutions and 
audiences?
How to approach this exam - Case 
Studies 
• These will involve the study of a specific studio or production company 
within the contemporary film industry that targets a British audience. 
• These might be based in the US (Hollywood), in Britain (Film4, BBC 
Films, Working Title), or part of World Cinema (Bollywood). 
• They will include the study of a studios patterns of production, 
distribution, exhibition and consumption by audiences. 
• They will also be accompanied by study of how contemporary films are 
distributed (digital cinemas, DVD, Blu-Ray, downloads, etc) and how 
this has changed the production, marketing and consumption of films.
Hollywood Studios 
• How many logos for Hollywood studios can 
you recognise?
The Origins of the American Film 
Industry 
• The origins and development of the American 
film industry are the period from 1895 to 
1930. 
• During this time the emerging industry 
developed into an important popular medium, 
organised into clearly defined exhibition, 
production, and distribution elements.
The Studio Era 
• The period from 1930 to 1949 in American 
film is known as the Studio Era. 
• By 1930 the American film industry was 
dominated by five companies known as the 
‘Majors’ or the ‘Big Five.
The Big Five
Vertical Integration 
• All of the Big Five studios were vertically 
integrated. 
• Vertical integration – where a company is 
organised so that it oversees a product from 
the planning/development stage, through 
production, to marketing, and distribution, 
through to the consumer.
Vertical Integration 
• During the studio era the Big Five owned the 
production studios, the distribution 
companies, and most of the cinemas in the 
US. Production Studio 
Distribution 
Cinemas
The End of the Studio Era 
• In 1949 the major studios were forced to sell 
off the cinema chains that they owned by the 
US government, after a court ruling that their 
practices were monopolistic. 
• The American film industry declined further in 
the 1950s due to the rise of television. 
• It wasn’t until the late 1980s that Hollywood 
studios fully recovered.
The Contemporary American Film 
Industry 
• The American film industry is now dominated 
by six major film companies. 
• The contemporary Big Six account for nearly 
90% of the North American film market. 
• All of these companies are subsidiaries of 
major media conglomerates.
The Big Six 
• Who do you think are the Big Six film studios 
in the contemporary American film industry? 
Major Studio Subsidiaries 
Warner Bros Pictures 
20th Century Fox 
Paramount Pictures 
Columbia Pictures/Sony 
Walt Disney/Touchstone Pictures 
Universal Studios
Ownership 
Do you know which 
conglomerate owns which 
film studio?
Conglomerate Parent Division Major Studio Subsidiary 
Time Warner Warner Bros. Entertainment Warner Bros. Pictures 
News Corporation Fox Filmed Entertainment 20th Century Fox 
Viacom Paramount Motion Pictures 
Group 
Paramount Picture 
Sony Corporation of America Sony Pictures Entertainment Columbia Pictures 
The Walt Disney Company Walt Disney Motion Pictures 
Group 
Walt Disney 
Pictures/Touchstone 
Pictures 
General Electric/ Vivendi NBC Universal Universal Studios
Related Division and Brands 
• Match the following subsidiary companies to their parent 
company. 
Universal Animation Studios New Line Cinema, HBO, Castle Rock 
Entertainment, Turner 
Entertainment, Warner Bros. 
Entertainment 
20th Century Fox Animation 
Nickelodeon Movies, MTV Films 
Pixar Animation Studios, Hollywood 
Pictures. Marvel Studios 
TriStar Pictures, Destination Films
Market 
• Which of the Majors do you think is the most 
successful. 
• Rank the studio’s market share: 
– 20% 
– 16% 
– 14% 
– 14% 
– 12% 
– 10%
11995500ss--11997700ss 
• Declining audiences 
– 4,000m (1946) - 800m (1973) 
FFiillmm IInndduussttrryy 
• Reduced output 
• Expensive overheads sold off 
• Stars released from contracts
TTeecchhnnoollooggiiccaall RReessppoonnsseess 
• WWiiddeessccrreeeenn:: CCiinneerraammaa,, VViissttaaVViissiioonn 
• CCoolloouurr 
• SStteerreeoo ssoouunndd 
• EEppiicc ggeennrreess aanndd ssttyyllee:: hhiissttoorriiccaall,, 
bbiibblliiccaall,, WWeesstteerrnnss -- llaannddssccaappeess 
• SSppeeccttaaccllee 
• 33DD 
• GGiimmmmiicckkss:: SSmmeellll--oo--VViissiioonn,, AArroommaa 
RRaammaa
Cinerama
CCoonngglloommeerraatteess 11996600ss--???? 
• HHoorriizzoonnttaall iinntteeggrraattiioonn 
This is whereby films can be made by a number 
of different sources/investors so that it is a 
team effort and not just one “vertical” 
company doing all the work. 
2)This one pays to distribute it in AMERICA 
1)These two companies fund the movies 
2)This one in EUROPE 
3)This company is responsible for 
putting it in the cinema/On DVD
JJaawwss 11997755 
DDiirreeccttoorr:: SStteevveenn SSppiieellbbeerrgg,, 
DDiissttrriibbuuttoorr:: UUnniivveerrssaall PPiiccttuurreess 
BBuuddggeett:: $$1122mm,, ggrroossss pprrooffiitt $$888899mm 
6677mm AAmmeerriiccaannss,, ffiirrsstt ssuummmmeerr bblloocckkbbuusstteerr 
KKeeyy IImmaaggee 
PPrree--rreelleeaassee pprroommoottiioonn:: bbooookk ttoouurr ((PPeetteerr BBeenncchhlleeyy)),, ssnneeaakk pprreevviieewwss 
NNaattiioonnwwiiddee pprroommoottiioonn:: 2255 3300--sseeccoonndd aaddvveerrttss nniigghhttllyy oonn pprriimmee ttiimmee 
nneettwwoorrkk TTVV ffoorr 33 nniigghhttss bbeeffoorree pprreemmiieerree 
FFrreeee nneewwss jjuunnkkeettss –– 220000 iinntteerrvviieewwss dduurriinngg llooccaattiioonn ffiillmmiinngg 
BBllaannkkeett rreelleeaassee 
LLaarrggee mmaarrkkeettiinngg bbuuddggeett:: $$11..88 
TTiiee--iinnss:: mmeerrcchhaannddiissiinngg:: 550000,,000000 TT--sshhiirrttss,, 22mm ppllaassttiicc ttuummbblleerrss ssoolldd iinn 
ffiirrsstt 88 wweeeekkss..
VViirraall mmaarrkkeettiinngg
Timeline 
• Create a timeline identifying key stages in the 
American film industry.

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Film industry

  • 1. The American Film Industry Lesson Objectives: To be aware of the historical development of the American film industry, and the contemporary structure of the industry.
  • 2. General Introduction 1. For the exam you should be prepared to understand and write about the processes of film production, distribution, marketing and exhibition. 2. The nature of audience consumption and the relationships between audiences and the film industry.
  • 3. General Introduction • In addition, you need to know about: • the issues raised by ownership in the contemporary film industry; • the importance of convergence and synergy in production, distribution and marketing of films; • the new technologies that have been introduced in recent years at the levels of production, distribution, marketing and exchange; • the significance of proliferation in hardware and content for film institutions & audiences; • the importance of technological convergence for film institutions and audiences; • the issues raised in the targeting of national and British audiences by international or global film institutions; • the ways in which your own experiences of media consumption illustrate wider patterns and trends of audience behaviour.
  • 4. General Questions • How do different films get produced and what is the ‘production process’? • How do films get distributed and what does film distribution involve? • What does the exhibition of films involve? • How do audiences ‘consume’ films and how has this changed? • How does the film industry, and particular film production companies more specifically, attempt to develop the relationship between institutions and audiences?
  • 5. How to approach this exam - Case Studies • These will involve the study of a specific studio or production company within the contemporary film industry that targets a British audience. • These might be based in the US (Hollywood), in Britain (Film4, BBC Films, Working Title), or part of World Cinema (Bollywood). • They will include the study of a studios patterns of production, distribution, exhibition and consumption by audiences. • They will also be accompanied by study of how contemporary films are distributed (digital cinemas, DVD, Blu-Ray, downloads, etc) and how this has changed the production, marketing and consumption of films.
  • 6. Hollywood Studios • How many logos for Hollywood studios can you recognise?
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  • 17. The Origins of the American Film Industry • The origins and development of the American film industry are the period from 1895 to 1930. • During this time the emerging industry developed into an important popular medium, organised into clearly defined exhibition, production, and distribution elements.
  • 18. The Studio Era • The period from 1930 to 1949 in American film is known as the Studio Era. • By 1930 the American film industry was dominated by five companies known as the ‘Majors’ or the ‘Big Five.
  • 20. Vertical Integration • All of the Big Five studios were vertically integrated. • Vertical integration – where a company is organised so that it oversees a product from the planning/development stage, through production, to marketing, and distribution, through to the consumer.
  • 21. Vertical Integration • During the studio era the Big Five owned the production studios, the distribution companies, and most of the cinemas in the US. Production Studio Distribution Cinemas
  • 22. The End of the Studio Era • In 1949 the major studios were forced to sell off the cinema chains that they owned by the US government, after a court ruling that their practices were monopolistic. • The American film industry declined further in the 1950s due to the rise of television. • It wasn’t until the late 1980s that Hollywood studios fully recovered.
  • 23. The Contemporary American Film Industry • The American film industry is now dominated by six major film companies. • The contemporary Big Six account for nearly 90% of the North American film market. • All of these companies are subsidiaries of major media conglomerates.
  • 24. The Big Six • Who do you think are the Big Six film studios in the contemporary American film industry? Major Studio Subsidiaries Warner Bros Pictures 20th Century Fox Paramount Pictures Columbia Pictures/Sony Walt Disney/Touchstone Pictures Universal Studios
  • 25. Ownership Do you know which conglomerate owns which film studio?
  • 26. Conglomerate Parent Division Major Studio Subsidiary Time Warner Warner Bros. Entertainment Warner Bros. Pictures News Corporation Fox Filmed Entertainment 20th Century Fox Viacom Paramount Motion Pictures Group Paramount Picture Sony Corporation of America Sony Pictures Entertainment Columbia Pictures The Walt Disney Company Walt Disney Motion Pictures Group Walt Disney Pictures/Touchstone Pictures General Electric/ Vivendi NBC Universal Universal Studios
  • 27. Related Division and Brands • Match the following subsidiary companies to their parent company. Universal Animation Studios New Line Cinema, HBO, Castle Rock Entertainment, Turner Entertainment, Warner Bros. Entertainment 20th Century Fox Animation Nickelodeon Movies, MTV Films Pixar Animation Studios, Hollywood Pictures. Marvel Studios TriStar Pictures, Destination Films
  • 28. Market • Which of the Majors do you think is the most successful. • Rank the studio’s market share: – 20% – 16% – 14% – 14% – 12% – 10%
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  • 38. Timeline • Create a timeline identifying key stages in the American film industry.

Notas do Editor

  1. Prompt students – Why did this decline happen? CLICK THROUGH – THE TV SET! This begins the idea of the films industry’s relationship with technology as a response to loosing audiences/making more money (see 3D and imax today)
  2. Television: small, black & white, unreliable transmission Colour available for decades but studios didn’t want huge expense of converting film laboratories
  3. 1960s to early 1970s a time of financial hardship and takeovers for some by non-related industries e.g. MGM – Kirk Kirkorian – bought the studio lot to build a car park Others became part of other entertainment and electrical groups -
  4. First film to realise the power of marketing: seen as the first blockbuster Marketing budget can now be 25%-50% of a film’s costs Studio production reduction to 6/7 high concept films annually (60 ‘A’ features annually in Studio System days) spend big to make big