1. Film & Home Video Industry

2. Historically... Vertically Integrated Oligopoly Develop and evolve with new technology Intellectual Property (Patent/Copyright) Format/Standardization Synergism MPAA (trade/ratings)

4. Structure Production (markets?) Distribution Exhibition Majors: WB Disney Paramount Universal Sony/MGM 20 th Century Fox

5. Production Top 6=88.5% Produced, 82-85% of market WB= 18%, $11.7B Paramount=16%, $1.2B Sony Pictures=11%, $7.3B Universal=11% 20 th Century Fox=11% WD Motion Pictures=11% Majors' Divisions=11%

8. Vertical Integration

9. “Indies” Lionsgate ($1.58B) Dreamworks (ADA, $16B) Lucasfilm LTD ($1.5B in 2005) “Organic” maybe? Music/A&R?

10. Products Placed Transformers Placed “Greatest Movie Ever Sold”

11. Runaway Production Creative=plot/setting/preference Economic=reduced costs Hollywood production -50% since 1996 90% of US runaways in Canada

12. Turning a Profit? PG ratings/Family movies Remakes, Sequels Reduce risk, make safe films that will sell Repeat proven formulas MPAA, no average costs, $106.6M in 2007 1 hit=5 more productions (profit margin) 6150% return / $6M budget; $369M return Avatar, $1.85B

13. Reproduction

14. Online 77.8 percent of the total U.S. Internet audience viewed online video. The average online video viewer watched 327 minutes of video, or nearly 5.5 hours. 99.7 million viewers watched 5.9 billion videos on YouTube.com (59.1 videos per viewer). 47.4 million viewers watched 349 million videos on MySpace.com (7.4 videos per viewer). Hulu accounted for 2.6 percent of videos viewed, but 4.9 percent of all minutes spent watching online video.

15. Majors=82-85%