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Taking a Look at the American Film Industry

Decent Essays

After taking a closer look at the film industry in the current years, it is easy to see that the structure market of this industry is an oligopolistic market. This means that there are several big companies that contribute to more than fifty percent of the production of films produced each year. At the moment some of the companies that together combine for more than this fifty percent are Sony, Warner Brothers, Disney, and Paramount. These big production companies have a big hold on the market, and are able to produce movies each month to keep a tight grip on the market share. This makes them the leaders in this market, but there is still room for a private independent company to produce a film and have great success (“Leading domestic distributors”, 2013).

The film industry is in the business to entertain, so it falls under the entertainment business. This opens the competition to a much broader sphere. There are so many other competitors under this category that it is necessary to narrow it down to a more precise competition. When talking about the entertainment industry this includes sports, video games, theme parks, television shows, live theater, and music, but it’s not helpful to compare to the film industry with all these other entertainment sectors. The focus will be on television shows and video games, which are more closely related to the film industry. In 2010 this section of television, films, and video games had revenue of $30 billion. Out of those $30 billion

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