Film process
- Someone has an idea for a movie.
- They create an outline and use it to promote interest in the idea.
- A studio or independent investor decides to purchase rights to the film.
- People are brought together to make the film (screenwriter, producer, director, cast, crew).
- The film is completed and sent to the studio.
- The studio makes a licensing agreement with a distribution company.
- The distribution company determines how many copies (prints) of the film to make.
- The distribution company shows the movie (screening) to prospective buyers representing the theaters.
- The buyers negotiate with the distribution company on which movies they wish to lease and the terms of the lease agreement.
- The prints are sent to the theaters a few days before the opening day.
- The theater shows the movie for a specified number of weeks (engagement).
- You buy a ticket and watch the movie.
- At the end of the engagement, the theater sends the print back to the distribution company and makes payment on the lease agreement.
During this period,1920s to 1950s, Hollywood film production was dominated by the studio system, which saw an ownership develop in which a handful of major studios competed with one another by signing and developing stars and using films as 'vehicles' in which to serve these stars up to the public. While some critics have argued that this resulted in highly processed, highly manufactured and highly repetitive films, it is an undeniable fact that some of the greatest Hollywood films of all time were created during this period. 'Gone with the Wind', 'The Wizard of Oz' and 'Casablanca' are just three of the classics released through the studio system, and it is also clear that the decline of the studio system in the 1950's and 1960's coincided with the end of Hollywood's dominance of the American film industry.
Horizontal integration means the merger of firms at the same stage of production in the same or different industries. For example, AOL and Time Warner.
Vertical integration means the merger of firms at different stages of production and distribution in the same industry. For example, Sony and Ericsson
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