Question

The economy of movies is changing ? Give reason:

Answer 1

Film has a uniquely powerful ubiquity within human culture. In 2009, across major territories, there were over 6.8 billion cinema admissions (compared against a world population of roughly the same number) creating global box office revenues of over US$30 billion. The convergent nature of film creates consumption across a number of channels. In the same year combined DVD and Blu-Ray sales in the United States, Canada and European Union alone were US$32.5 billion (amounting to over 1.1 billion units sold). When you start to then consider revenues and audience figures from those who consume digitally, via television, repeat view content they already own and view through the highly illegal but vast black-market in films, the figures become truly staggering.

Answer 2

Like other major innovations such as the automobile, electricity, chemicals and the airplane, cinema emerged in most Western countries at the same time. As the first form of industrialized mass-entertainment, it was all-pervasive. From the 1910s onwards, each year billions of cinema-tickets were sold and consumers who did not regularly visit the cinema became a minority. In Italy, today hardly significant in international entertainment, the film industry was the fourth-largest export industry before the First World War. In the depression-struck U.S., film was the tenth most profitable industry, and in 1930s France it was the fastest-growing industry, followed by paper and electricity, while in Britain the number of cinema-tickets sold rose to almost one billion a year (Bakker 2001b). Despite this economic significance, despite its rapid emergence and growth, despite its pronounced effect on the everyday life of consumers, and despite its importance as an early case of the industrialization of services, the economic history of the film industry has hardly been examined.