Short answer production of money authoritarian libertarian theory media theories impulses to keep info contained new vs old technology vertical integration control means of production control over their creative talent worked for the studio owned a bunch of theatres warner theater movie theater owned by warner brothers could make sure they could produce things the way they want landmark air conditioned owned by movie studios to theatres they didn t own booking if say yes to one movie need to say yes to 8 other ones in order to have that one movie The rise fall and rise of Hollywood the era of competition 1948 1975 fall 1948 paramount decision studios lose in supreme court vertical integrations ruled illegal engaged in anticompetitive behavior violated antitrust laws exercising vertical integration not okay forced to sell out all of their theaters paramount first name in list of studios being sue 1950 s the rise of TV movies lost their audience movie attendance per week how many sold per week movie attendance ticket sales cut in half in about 6 years half of revenue disappeared box office sales decrease number of movies decreased had problem of show inappropriate content action picture production code self regulatory code to keep ivies moral code became less important in Hollywood more provocative content decrease in moviegoers the rise and fall of Hollywood industry response Do what TV couldn t 1 sex 2 wide screens 3 color film 4 big budget extravaganzas a the ten commandments Ben hur Spartacus i Spartacus 14 million director hired the Spanish army expensive film to make 1960 made 110 mill in the box office prob weren t that many Spartacus films out there to make the trend Problem these failed to stop the decline in revenues what worked independent workers take over creative desires of things doesn t necessarily work for a particular studio could make movies for less money became financial backers for a lot of films rebirth 1975 Jaws targeted films to specialize audiences especially teens bulk of money comes from domestic box office lots of movies for younger audiences will actually go to the theater in the 70 s textbook ex George Lucas American graffiti teenage comedy films it at night old rock and roll songs very budget conscious keeps film to 750 000 budget tailored toward young audiences box office 115 million not a bad ROI return on investment changed Hollywood dramatically first summer blockbuster TV advertising up until this time TV was the enemy driving down ticket sales advertised a lot extra hype lead time before the film actually hit theaters first film to ever be released on 1000 screens multiple screens cost 12 million domestic gross just in the US 260m international gross 210 m one of the first films to do really well abroad set this formula wait to release film hype it up Rebirth of Hollywood 1977 present Rise significant developments 1977 through 1980 s 1 Merchandising and licensing had to wait four years before it was out only shown in the theatres a Star Wars 977 cultural phenomenon more tickets than any other film except gone w the wind people kept going back and seeing it again i ii iii iv George Lucas studios turned him down was going to call it the Star Wars alan ladd believes in george lucas hesitant about funding Lucas agrees to take large pay cut 50 if agree to make film Lucas gets to keep merchandising rights used to not mean much wanted to print up t shirts being ads for his movies control products made out of Star Wars merchandise domestic gross 322 merchandising 1 Billion all six total merchandising 8 billion b ex Harry potter merchandise 33 more holistic approach moves ways to produce a lot of money outside various means 2 Video and cable HBO big source of revenue inappropriate 3 return of movies for older audiences ex the color purple did well on video and cable lots of versions of films make a lot of money for films 4 international release 5 product placements new source of revenue during the 1980 s ET 1982 and reeses pieces didn t want Hersey kisses associated w alien let them use reeses pieces sales of reeses pieces increased dramatically analyze scripts and see whether they can advertise products if a star mentions and uses it have to pay more re birth 1977 by mid 1980s Hollywood was back synergy corp rite products across all customer s entities look at Hollywood domestic numbers then came conglomeration and synergy as many eyes as possible studios part of larger media corporations Important issues 1 technology changes ipads Netflix iTunes and new platforms for delivery a b Netflix moving toward streaming content on multiple platforms including net enables TVs soon to be carried on cable systems 2 blockbuster mentality rely on these films in the summer when young people have more time to go to the theater a frontloading opening weekend important market for success important that films do well i ii iii iv v why the amount of money changes from the time it is open in the theater money goes back to the theater only want to keep files that will have a long tail out longer make more money the longer the film is in risk averse green lighting the avengers cost 220 m 100 m marketing opening domestic 207 m on 4349 screens in theatres 22 wks 3 dvds and digital video downloads streaming a dads declining source of revenue influencing green light processes 4 digital piracy x men wolverine harry potter a wolverine movie critic in dallas watched illegal pirated movie and wrote review so review came out when film came out fox found out fired him b unique so that is one got out unique could sue that person if found responsible gain lose copyrights to stream the film sunken over 300 million in that film impax costs more than regular movie screen numbers get inflated why see so many movies character u already know already a fan base built into it Video games the industry today 74 billion worldwide 25 B US bigger than US box office console makers nintendo wii sony playstation and ms xbox dominate game publishers L activision Blizzard call of duty guitar hero WHOM 2014 revenue 4 8b electronic arts madden football Bejewelled blitz 2014 revenue 3 0 billion zynga words w friends current industry trends reliance on franchises console sales stagnant if like franchise take advantage of enjoyment of franchise sell things associated w it social mobile gaming hot barrier of entry hindrances from entering a particular industry few barriers of entry for small companies and