1. Hollywood Why is Hollywood such a successful film industry?

2. Hollywood

3. Vertical integration of the Hollywood film industry Vertical integration was a key feature of the Hollywood studio system up to 1948. The ‘Big Five’ studios were:

4. "The Big Five," major studios realized they could maximize their profits by controlling each stage of a film's life: production (making the film), distribution (getting the film out to people), exhibition (owning first-run cinemas in major cities).

5. "The Little Three" studios also made pictures, but each lacked one of the crucial elements of vertical integration. Together these eight companies essentially controlled the entire market.

6. They also controlled the terms under which you could see their films. Prestige or “A-Movies” used studio stars and lavish production values, and then could only be seen initially in studio-owned, first-run cinemas. When the studios released these films to cinemas they didn't own, they forced those owners to buy A-pictures in combination with a number of, often mediocre, B- pictures (no stars, bargain-basement genre pictures) and shorts, a practice called "block booking." Moreover, the studios often made the exhibitors buy the films blind, not allowing them to see what they were getting before they got it.

7. The end of Hollywood's Golden Age In 1948 the studios were ordered to give up their cinemas, opening the market to smaller producers. This, coupled with the advent of television in the 1950s, seriously compromised the studio system's power and profits. Hence, 1930 and 1948 are generally considered bookends to Hollywood's Golden Age, the period when these eight companies secured 95 percent of all film rentals and close to 70 percent of all box-office receipts.

8. So, Vertical integration has gone, making the Hollywood studios more competitive?

13. Case study:

15. All owned by Rupert Murdoch

16. TypeSubsidiarySubsidiary of News CorporationNews Corporation IndustryFilm FoundedMay 31, 1935, [1] by merger of Fox Films (founded in 1915) and 20th Century Pictures, Inc. (founded in 1929) [1] Founder(s)William Fox Joseph M. Schenck Darryl F. Zanuck Raymond Griffith William Goetz HeadquartersFox PlazaFox Plaza, Century City, Los Angeles, California, United StatesCentury City, Los AngelesCalifornia ProductsMotion picturesMotion pictures, television filmstelevision films Owner(s)IndependentIndependent (1915–1985) News Corporation (1985–present) News Corporation ParentFox Entertainment Group Divisions20th Century Fox Animation Fox Animation Studios 20th Century Fox Animation Fox Animation Studios Fox 2000 Pictures SubsidiariesFox Searchlight Pictures Fox Atomic Fox Interactive 20th Century Fox Home Entertainment Fox Television Studios Blue Sky Studios 20th TelevisionFox Searchlight Pictures Fox Atomic Fox Interactive 20th Century Fox Home Entertainment Fox Television Studios Blue Sky Studios 20th Television/20th Century Fox Television Fox Star Studios20th Century Fox Television Fox Star Studios Websitewww.foxmovies.com

17. TypeSubsidiarySubsidiary of News CorporationNews Corporation IndustryFilmFilm, televisiontelevision Founded1990s HeadquartersFox PlazaFox Plaza, Century City, Los Angeles, California, United StatesCentury City, Los Angeles Key peopleJim GianopulosJim Gianopulos, Chairman, CEO ProductsMotion picturesMotion pictures, Television programsTelevision programs Revenue $13.28 billion USD (2004)USD Operating income $2.9 billion USD (2004)USD Net income $1.85 billion USD (2004)USD Owner(s)News Corporation Employees12,500 (2004) ParentNews Corporation

18. TypePublic Traded asNASDAQNASDAQ: NWS NASDAQ: NWSA ASX: NWS ASX: NWSLV NASDAQ-100 Component S&P 500 Component S&P/ASX 50 ComponentNWS NASDAQNWSA ASXNWS ASXNWSLV NASDAQ-100 Component S&P 500 Component S&P/ASX 50 Component IndustryMass media FoundedAdelaideAdelaide, Australia (1979) [1][2] Delaware, United States (12 November 2004) [3] [1][2] Delaware [3] Founder(s)Rupert Murdoch Headquarters1211 Avenue of the Americas1211 Avenue of the Americas, New York, NY 10036, USA New YorkNY Area servedWorldwide Key peopleRupert Murdoch (Chairman and CEO) Chase Carey (President & COO)ChairmanCEO Chase Carey ProductsCable network programmingCable network programming, filmed entertainment, television, direct broadcast satellite television,publishing, and otherfilmed entertainmenttelevisiondirect broadcast satellitepublishing Revenue US$ 33.706 billion (2012) [4] [4] Operating income US$ 2.212 billion (2012) [4] [4] Net incomeUS$ 1.179 billion (2012) [4] [4] Total assets US$ 56.663 billion (2012) [4] [4] Total equityUS$ 24.684 billion (2012) [4] [4] Employees48,000 (2012) [4] [4] SubsidiariesList of subsidiaries WebsiteNewsCorp.com

20. Some of those names for this year: BV = Buena Vista – a subsidiary of Disney P/DW = Paramount Dreamworks Gold = Samuel Goldwyn Studios (ex- MGM)

21. The interesting one: LGF = Lionsgate – (Canada) the most commercially successful independent company in North America

22. TypePublic Traded asNYSENYSE: TWX S&P 500 ComponentTWX S&P 500 Component IndustryMass media Predecessor(s)Time Inc. Warner Communications Founded1990 HeadquartersTime Warner CenterTime Warner Center, 10 Columbus Circle, New York City, New York,United StatesColumbus Circle Area servedWorldwide Key peopleJeffrey L. Bewkes Jeffrey L. Bewkes (Chairman & CEO) ProductsTelevision, movies, entertainment, cable,broadcasting, radio, web portalsbroadcastingweb portals Revenue US$ 28.7 billion (2012) [1]billion [1] Operating income US$ 6.1 billion (2012) [1] [1] Net income US$ 3.5 billion (2012) [1] [1] Total assets US$ 68.304 billion (2012) [1] [1] Total equity US$ 29.954 billion (2011) [1] [1] Employees34,000 (2012) [1] [1] SubsidiariesList of subsidiaries Websitewww.TimeWarner.com

23. US Weekend box office February 15-17, 2013

24. UK Box Office for 2012

25. Momentum Pictures – a successful British film Distributer ……Owned by Paramount Pictures.

26. British Involvement?

27. Most of these films have British actors, many in the lead role. Is it important to British audiences to see British stars on screen?

28. Media Ownership Have the big studios managed to find a modern equivalent of vertical integration? Why do you think that the big studios own smaller production companies? Why not just focus on making big, mainstream releases? Can the British film industry compete?

29. Case Studies Find out what information you can about at least one American film production company. Do they have links to wider media ownership? Do the same for a UK film production company hint: Aardman, Film4, New Line Cinema, etc Look at co-productions