Economics of Film

One of the largest industries in the United States and worldwide, the movie industry pulls in tens of billions of dollars each year in the US alone. While it seems like there are hundreds of companies all making movies in Hollywood, there are only 6 companies that make up a large majority of the market share.

Image result for hollywood

In 2018, Disney held 16% of the market, and acquired 20th Century Fox which itself held over 11% of the market share in the movie industry. Warner Bros is another huge company in the market, with over 15% of market share.

We see an extremely similar industry setup in completely separate industries, such as food, where a small handful of corporations own dozens of smaller companies each, which at the surface resembles a competitive industry, however looking at it with any depth it is apparent that entry into the market is small even beyond the level of individuals wanting to share their ideas, but even new companies that want to enter the market.


Sources:

https://www.statista.com/chart/12307/market-share-of-major-film-studios/
https://deadline.com/2018/07/film-industry-revenue-2017-ibisworld-report-gloomy-box-office-1202425692/

Comments

  1. AnonymousApril 25, 2019 at 2:09 AM

    Nice post Naya, it's interesting how many of our entertainment and service industries tend to be oligopolies. While monopolies are often regulated by the government, oligopolies receive little to no attention yet can still have the same harmful effects on consumers as a traditional monopoly would have.

    ReplyDelete

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