The Movie Entertainment Industry ( Current Issues ) Research Paper

The Movie Entertainment Industry ( Current Issues ) - Research Paper exerciseThe strategy is quite simple movies became more larger than life, splashier and argon made to impress in set out to attract the public who have become more sophisticated in their tastes. This has become the blockbuster form that has worked for major studios. By 2002 the annual ticket sales peaked at $1.6 billion.1 After this period, however, one rouse no longer say the same. In 2008, the figure dropped to $1.3 billion while the audience registered a unremitting decline in size across all segments of the movie-going public except teenage boys.2 Hollywoods formula for blockbuster films - one that has so far succeeded in impressing the audience and keep them coming corroborate - relies much on technology because it is crucial in providing flashier visual effects, which has been proven to appeal to a broader audience. emphasize gibe to Vanhala (2011), the average production cost of a movie from a major s tudio is $55 million with an additional $27 million to advertise and market, a total of almost a one C million per film.3 Big productions that almost often assure recession-office success could cost a studio up to 300 million dollars such(prenominal) as with the courtships of Spiderman 3 and Pirates of the Caribbean 3. The figures be humungous and one could often hear producers regret around the viability of moviemaking and of the way films lose even with a decent performance at the box office. The bang is not entirely unfounded. A detailed explanation has been offered by Vanhala as it was suggested that domestic box office, home plate video, DVD, television and cable revenues often toilettenot collectively cover the invested money in a film unless it is a major blockbuster.4 Pricewaterhouse-Coopers reported that the major studios revenues can be broken down as follows 1) theatrical box office 24.6 percent 2) television 28.8 percent and 3) Home Video 46.6 percent.5 at tha t place are those who would argue that former(a) means of revenues could make up for box office losses but this is not always the case. According to the Motion Pictures Association of America most films never recoup their initial investment.6 A case in point is Princes (2002) discussion of movie revenue in which he stressed There is little home video revenue left over to pay back the substantial contradict cost still on the books from a theatrical flop. Home video success in such a case is significant for the companys cash flow and especially for its home video profit center, but profit participants due a percentage on the theatrical flop are unlikely to be close to paydirt.7 It is not surprising, hence, when both academics and economists brand moviemaking in American as a risky affair. The dynamics by which film financing are undertaken with their complex and elaborate risk-sharing schemes underscore this point. Today, films are no longer produced by one studio or entity. Investor s are pooled, which include corporate entities and former(a) third-parties such as A-list actors, directors and producers.8 Out of all of the dismal statistics cited, however, it is interesting to note that Hollywood still makes about 400-600 films each year.9 The answer to this puzzle is crucial in identifying the effect of technology in movie-making. Understanding them can help outline the importance of technology in American filmmaking today. There are two determine drivers to the American film industrys profitability blockbuster films and the international market. These two areas proved to be not just the