The economic impact of the movie making industry in the United States

Résumé du document

Along with the main industries of the United States, such as the automobile or the pharmaceuticals industry, the American film industry emerged during the twentieth century as an industrialized mass entertainment activity. Every year, billions of movie tickets were sold in the US, and all over the world, cinema became a trend, and the number of consumers increased everyday. After both world wars, people seemed to seek a new type of entertainment, which helped movie makers make it one of the first sold services of all times. Movies were watched inside the US, but were also exported to the biggest cities of the world, and American movies became the most watched of other movies.

Fascinated by American movies, I chose to work on this topic because I always wanted to know more about the economic impact of the American Film Industry. As a result, this study is going to help us understand why is this industry vital for the American. Its impacts, seemed in fact deeper than what one could have imagined, not only the economy is affected but the whole American Model is being exported through the various movies the industry is constantly producing. In fact, exporting movies is like exporting the American culture and creating a massive international demand of American goods.

Extraits

[...] The cinema rented the movies, allowing movie producers to make money, and they sold tickets generating money themselves. Very high profits were generated, which encouraged producers to invest more in the industry; this is probably one of the reasons today of the amounts the stars get when they stare in important movies: producers paid more for movie stars, for very well decorated movie sets. Movie consumption increased in a spectacular way, people belonging to different social categories, different ages and sexes enjoyed the movies and The rise of Hollywood: Hollywood is a district of Los Angeles (pop: 250 000), California: on the west coast of the United States. [...]

[...] Source: www.census.gov As we notice, in the 2008 census, the State of California is ranked first in terms of GDP, compared to the other states. We will explain later in this study the importance of the movie industry and of the surplus it generates in the State of California. The rise of Hollywood was also due to a decline in the European filmmaking industry, which took place during the 1920's. A decline that was mainly the result of world war one: Europeans could no longer compete with American moviemakers in terms of quality, creativity, and production. [...]

[...] Universal Studios: founded in 1912, it is one of the main movie making companies in the world. With over 14000 employees , the company's annual sales are over 7,5 billion dollars a year. It is active in a variety of entertainment enterprises. One could see that those five companies not only offer jobs to the American market, they also generate huge amounts of money that is not only coming from the local market but most importantly from abroad. This example is meant to show how concretely the film making companies contribute to the American economy. [...]

[...] The independence of the movie industry could probably be one of the reasons behind its durable success. On the other hand, the government seems to have clearly understood the importance of the movie making industry nationally and abroad. It is true that movie making companies pay taxes to the government but, the government has always encouraged the industry, and this for example through incentives and through agencies that help film makers find movie locations or even find the means to produce their movies. [...]

[...] In fact, the most challenging issue is the one concerning piracy and copyright violation. Today, many Internet sites are stealing copyrighted content that belongs to the motion picture industry. Some of them are entirely dedicated to sharing and posting the film industry's exclusive products, which concerns and threatens the motion picture community. There seems to be a deficiency in terms of regulation, an absence of laws that could effectively avoid such violations. Movie Piracy is the illegal copying of movies for personal or commercial use. [...]