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Michael Noone, Jonathan Young, Jake Mikucki, and Tucker McIlwrath
Movies
During the 19th century, political and economic factors helped to critically determine the direction of the industry. The rise of finance capitalism, during this period, and concentration of wealth into great industrial corporations, trusts, and cartels eventually proved a model for the film entrepreneurs who transformed the motion picture from its earlier chemical, mechanical, and electrical origins into a potent national cultural force.
Between the years of 1900 and 1920, thousands of hopeful film production companies had been incorporated in America and more followed in what has been described as a “cinematic goldrush” (Epstein, 2005). As early as 1915, estimated half billion dollars was invested in the industry, with both business magazines and established Wall Street brokerage houses, beginning to take a new look at the burgeoning film marketplace (Epstein, 2005).
As paradoxical and absurd as it sounds, it’s cheaper for a Hollywood studio to make a big-budget action movie than to make a shoestring art film like Sideways. Paramount’s action flick Lara Croft: Tomb Raider. On paper, Tomb Raider’s budget was $94 million. In fact, the entire movie cost Paramount less than $7 million. How did the studio collect over $87 million before cameras started rolling? (Epstein, 2005)
It is estimated that by 2020, Global box office revenue’s will increase by eight billion dollars (Statista, 2016). The percentage of revenues an exhibitor gets depends on the contract for each film. Many contracts are intended to help a theater hedge against films that flop at the box office by giving theaters a larger cut of ticket sales for such films, so a deal may have the studio getting a smaller percentage of a poorly-performing film and a larger percentage of a hit film’s take (Zipin, 2017). Studios and distributors generally make more from domestic revenue than from overseas sales because they get a larger percentage. Still, overseas ticket sales are incredibly important, especially today (Zipin, 2017). It’s why you’re seeing more sci-fi, action, and fantasy films, and why superhero movies are such a phenomenon: They’re easy to understand, whether you’re in Malaysia or Montana.
Television
Television is a billion-dollar industry. There was a time when there were only three channels. Companies can now provide thousands of channels. Of course, some channels are the same and are not available because they are meant to broadcast a live event. Cable companies like Comcast and Spectrum, make their money by selling package deals. These companies have no problem showing any sport event, political event, or movie just for a couple more dollars.
Televison channels make their money by company’s buying air time to advertise and from the cable companies that sells certain packages with their channel in it. The most profitable way for channels is selling air time. Depending on the event, these channels can ma