New Millennium of Filmmaking
In the New Millennium of filmmaking, Hollywood operates according to a synergism merchandising strategy. This is because the new Hollywood of Today is no longer controlled by the former studio giants supported during the studio system that was rife from the early 1920s to the 1950s. Columbia, Warner Brothers, Twentieth Century-Fox, Universal, RKO, Paramount Pictures, and Metro-Goldwyn-Mayer are not structured in the same way they were years ago. Today, the Hollywood film industry is quite different.
For example, the majority of the profits from a film release do not come from ticket offic ticket gross revenue as they did during the studio system years. The bulk of the profits come from a myriad of other merchandising avenues. In the Hollywood of Today, film production companies give official, legal license to market their film characters and corresponding stories to other business markets for inflated profits. These businesses let in sale of books, music, clothing, games, digital streaming and downloads of films through television, sale of optical disc media, amusement Parks also as a multitude of other synergistic gross revenue avenues.
DOWN MARKETING CAMPAIGN
This was not the case during the earlier studio system where the majority of profits came from ticket gross revenue. Therefore, even though a studio in Hollywood now may look the same physically on the outside, it operates to a all different way of business on the inside.
Film Studio Ownership by Large Businesses and International Conglomerates
Hollywood film studios and independent filmmaking companies are now closely-held by large businesses and international conglomerates. These large corporations have a myriad of business industries under single ownership. As a result, film production and distribution is just one of the many types of business aspects that these huge firms receive money from on a regular basis. Examples of the transition of independent film studios to large business firms let in:
(1) Columbia Studio is now closely-held by Sony Pictures Entertainment, a subsidiary of Sony Corporation,
(2) Warner Brothers is now closely-held by Time Warner, Inc.,
(3) Twentieth Century-Fox is now a subsidiary of News Corporation,
(4) Universal Studios is a subsidiary of NBC Universal which is now closely-held by General Electric,
(5) Paramount Pictures is now closely-held by Viacom International, and
(6) Metro-Goldwyn-Mayer (MGM) is part closely-held by Sony Corporation on with several other large business firms.
Business Structure and Operation in the New Millennium of Filmmaking
In the Hollywood of Today, Hollywood film studios are no longer independent. They are now closely-held by large international firms and businesses. Therefore, Hollywood film production and distribution is only one of a multitude of different types of commerce these huge conglomerates participate in on a daily basis. Hollywood film revenues represent only one portion of a large corporation's business dealings. As a result, this new business structure and commercial framework has resulted in a blockbuster/sequel frame-of-mind upheld by a synergism merchandising strategy.
With the many different types of merchandising avenues now available through the commercial enterprises of large business firms and international conglomerates, the Hollywood of Today has transitioned to a film style and mode of production that capitalizes on the concentrated synergistic effect of film-related sale of merchandise and other media offshoots.
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