Industry Stats Flashcards
Number of private sector jobs supported by Motion Picture & TV Industry in 2010
2.1 million
Total wages (direct & indirect) paid by Motion Picture & TV Industry in 2010
$42.1 billion direct, $143 billion indirect
Percent average salary in MPTI is above national average in 2010
32% higher
Number of jobs in core business of producing, marketing, manufacturing and distributing motion pictures & tv shows in 2010
282,000 jobs
Average salary of core MPTI job & percent above average nationwide salary in 2010 (emphasis on core jobs)
$82,000 and 74% higher than avg nationwide salary
Core businesses of MPTI
Producing, marketing, manufacturing, distributing
Indirect businesses supported by MPTI
Eg’s: caterers, dry cleaners, florists, hardware and lumber suppliers; other consumer-related businesses like DVD retailers, theme parks, tourist attractions
Number of businesses related to MPTI nationwide
95,000 businesses located in every state of the US
Amount of taxes generated by MPTI in 2010
$15.6 billion
Amount of services exports from MPTI in 2010; how does that compare to 2009 and 2006?
$13.5 billion in exports (one of the few that consistently generates a positive balance of trade; down 2% from 2009, up 6% 2006
Amount of services trade surplus MPTI was responsible for in 2010; percent of overall private sector services trade surplus
$11.9 services trade surplus, or 7% of total US private sector trade surplus in services
By comparison, the MPTI services surplus is larger than the surpluses in these other industries
Telecommuniations, management & consulting, legal, medical, computer, and insurance services
Major Motion Picture Studios
Walt Disney, Sony Pictures, MGM, Paramount Pictures, 20th Century Fox, Universal Studios, Warner Bros
Average number of films distributed in US per year
~480, or somewhere between 460 and 510 feature films
Average number of films distributed by major studios
Less than half of the ~480 distributed in the US
Percent of box office revenues made by major studios
> 95%, despite the fact that they distribute less than half of the ~480 features films per year
Number of films that made over $50 million in 2001
52
Number of major theatrical films that lose money, break even, and/or are profitable out of 10, on average
6-7 are unprofitable, 1 breaks even, 1-2 are profitable. though, over time, most films will earn substantial revenue from ancillary markets such as home video, cable television, international release, and merchandising.
Major causes leading to the breakup of the old “studio system” of movie production
1) Supreme Court breaking up studios from theatre chains in 1948
2) Invention of television in the 1950s lead to reduced attendance at movies, leading studios to diversify from simply movies to tv, music and theme parks
3) Unions, agents and attorneys protecting the interests of the writers, actors and directors that the studios used to practically own
Negative results of the studio system breaking up and MBAs taking over
1) Hollywood is risk-averse. The goal is to make money and so a desire to make the safe bet takes precedence over making the bet w/the biggest upside
2) Hollywood Execs try to avoid risk, so they make films they can justify to their boards; they take similar story lines and attach popular directors and actors to make the film, thus presenting an impressive-looking package with some “insurance”.
3) Hollywood Execs inserting themselves into the creative process because they see a correlation between that and the ability to negotiate a good deal, AND b/c they are the ones whose asses are on the line
4) The movies that do best are distinctly original (Star Wars), not re-treads
Positive results of the studio system breaking up and MBAs taking over
Reducing risk has let to creative ways to finance films:
1) Pre-sale agreements w/cable and home-video co’s, or by cutting deals w/outside investors, much risk has been eliminated from the filmmaking process
2) Today’s films are no more profitable than they were during the studio system days
