The Business of Film, 2nd Edition

Chapter 2

A Business Overview of Film

 

The film business has certain characteristics that distinguish it from other types of commercial enterprises, and that demand expertise in, and mastery of, the business consequences that flow from these attributes.

Key Characteristics of the Industry

While the technological side of the film industry has changed dramatically from the very beginning, certain business characteristics remain constant, and patterns have emerged regardless of technology.

These characteristics include:

• film is intellectual property;

• managing creative talent;

• film is a global product;

• film takes a long time to develop, produce, and market;

• market structure—oligopoly versus monopoly;

• cyclical;

• price elasticity.