Abstract
This chapter outlines the essential characteristics of the film market. First, the characteristics of films as an economic media and as a cultural good are introduced. Subsequently, the most important parameters of the recipient market and the essential procurement markets are dealt with. In this context, the differences to other media genres will be highlighted. The project-based value creation in the film industry is presented as a network. Current trends in the industry with regard to changes in production and distribution in the course of digitalization are also considered. Finally, the chapter looks at the cinema as a traditional distribution channel for feature films and highlights its opportunities.
This chapter is a translation of a German text written in 2016.
Notes
- 1.
Sections 2 and 3 are largely based on chapters “The History of Media Economic Thought in the German-Speaking World Up to the Year 2000” and “Classical Political Economy” in von Rimscha (2010), condensed and updated to the time of writing this chapter in 2016.
- 2.
Exact figures are hard to come by, as many employees work in both the cinema and TV production markets.
- 3.
The figures refer to the data stock in November 2016.
- 4.
The value refers to the period 2000–2013.
- 5.
For German films in 2000, the revenue share of theatrical exploitation was 22% according to Seufert (2002, p. 90) – less than TV (28%) and funding share (33%). More recent figures are not available.
- 6.
- 7.
This ideal-typical sequence applies in particular to major productions. In addition, there are many other “informal” ways for recipients to obtain films or for providers to distribute their films (Lobato, 2012).
- 8.
However, the German (§ 20 FFG) and Austrian film funding laws (§ 11a Filmförderungsgesetz) continue to prescribe blocking periods for funded films, also to protect cinemas from competition. There is no such regulation in Switzerland.
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von Rimscha, M.B., Ehrlich, G.L. (2022). Film and Cinema in the Age of Media Convergence. In: Krone, J., Pellegrini, T. (eds) Handbook of Media and Communication Economics. Springer, Wiesbaden. https://doi.org/10.1007/978-3-658-34048-3_40-2
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