Economics case study analysis

American film industry has the advantage of possessing an international reputation for making entertaining films. Images from American films are iconic, spanning from Clint Eastwood's urging to "make my day," to Jack Nicholson's grimacing "Here's Johnny." Production and studio apparatus are already built up within the Hollywood area. Distribution agreements exist between studios and movie chains around the world. However, fewer and fewer people are watching their films in the theater or even on television. It is not just that Netflix or DVDs offer alternative venues for watching standard Hollywood or even independent films. Free, independent content, often more perfectly tailored to the viewer's interests is available streaming online. And the Internet itself offers another, more interactive mode of entertainment to compete with film.

Q2. Film has been critical in the development of America's unique national culture. Unlike European and Asian nations, American is relatively young, and its birth as a distinct modern culture coincided with the birth of film. This is not to say that America lacks great composers, writers, and artists in its history, but because of the ancient nature of these arts, other nations have a longer tradition of these creative processes. This is in contrast to filmmaking, which really 'took off' as an industry in the United States. Film created a common point of reference for all Americans for many years.

Q3. Institutionalized filmmaking is likely to be less important in the evolution of cinema in coming years. Making films has become more democratic than ever before, with digital technology. Filmmakers can post their works on the web, and use webpages and other methods of promotion to drawn an audience. Filmmakers from around the world, including poorer nations that once lacked a filmmaking industry entirely, can now compete with American films.

Q4. One of the greatest obstacles in the film industry is the financial barrier for viewers. Going to the movies is getting more and more expensive. It is difficult for the average American consumer to justify the additional expense, when he or she has entertainment online or on the television screen at home (usually at a monthly price far cheaper than seeing a film in the cinema every week with a family). This reduces the potential revenue of the film industry. Renting DVDs and Netflix is far cheaper than going to the movies as well. The Internet culture and the culture of multiple cable television stations has caused people's interests to grow far more scattered and diffuse, making it more difficult for filmmakers to reach a coherent, large audience base.