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Motion Picture Industry: Movies
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In this article, the authors use real-world data to investigate market dynamics of the motion picture industry. A key contribution of this research is the use of a dynamic simultaneous-equations model to provide new insights into the drivers of and the interrelationships among the behaviors of movie audiences, studios, and exhibitors. Specifically, in contrast to prior research, the current study treats advertising expenditure as well as screens and (expected) box office revenues as endogenous variables to examine previously unexplored interaction roles of advertising expenditure and sequels on box office revenues. The findings extend the movie literature, which has only partially examined the influence of sequels and advertising expenditure on box office revenues. An interesting result of this study is the positive interaction between sequels and ad expenditures. This implies that the same level of ad expenditure has a more positive effect on quality perception and, consequently, a greater boost to box office revenues for sequels than for nonsequels.
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The motion picture industry is ... concerned about piracy of its work, which can occur in several ways. For example, as the power and speed of the Internet grows, more movies are being downloaded directly into homes, causing declines in theater attendance and losses in revenue from ticket sales. The industry estimates that it loses billions of dollars annually due to piracy which could, potentially, have an adverse affect on employment. The Motion Picture Association of America has enacted a number of measures to combat this trend, including lawsuits, lobbying Congress for legislation, and new in-theater security measures. Digital transmission of motion pictures from studios directly to movie houses for exhibition will also work to prevent some piracy problems, but it also has high start-up costs—expensive digital projectors and the added costs to install transmission and distribution technology and security software.
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Box Office Essentials is the motion picture industry's original real time data collection and analytical service. Box Office Essentials was developed in 2004 as a result of working closely with studio and exhibition executives to design and successfully implement state-of-the-art proprietary and secure technology that gathers box office ticket sale information from more than 6,100 theatre locations across the U.S., Canada, India and Hong Kong. Box Office Essentials provides each studio with password-protected, real-time, web browser-based and 24x7 access to data pertaining specifically to their movie release titles. A sophisticated toolset allows studio distribution executives to view and analyze the information at different levels of detail and across a multitude of attributes (by theatre circuit, DMA, time zone, etc.), enhancing their ability to make faster, better informed decisions. Additional features include online school calendars (K-12 and college), interactive release schedule and 24-hour subscriber support.
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The Motion Picture Association of America (MPAA) has made estimates that 90% of films that appear in P2P on the Internet come from theatre goers making their own versions of the movie with their camcorders. And there have been attempts to curb this. Laws have been passed in many states that punish violators of camcorder piracy in theatres. But is this enough?
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The early motion picture industry adopted two markedly different exhibition formats. Motion pictures were either shown to individual spectators through small viewing devices such as the Edison peephole kinetoscope or to large audiences through theatrical projection. Ancestors of both modes of exhibition were popular before modern motion picture technology became available. The peephole kinetoscope and the mutoscope, which used a series of flip cards, allowed a single viewer to see pictures with the illusion of movement. These were preceded by the stereoscope, which enabled individual spectators to see photographs with the illusion of depth. Photographic images were ... projected "life-size" during the second half of the 19th century by means of the magic lantern, a forerunner of the modern slide projector.
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ShoWest is the largest annual convention for the motion picture industry. It is the only international gathering devoted exclusively to the movie business and the single largest international gathering of motion picture professionals and theatre owners in the world. The 2006 edition of ShoWest will be held March 13 –16, 2006 at Bally’s and Paris Las Vegas and is expected to draw more than 5,000 members of the motion picture industry. Each year, ShoWest attracts delegates from more than 50 countries in North and South America, Europe, Asia and Australia. ShoWest is managed by the VNU Expositions Film Group, a division of VNU Business Media.
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