1. Movies and Their Audiences Movies may have more in common with how someone interacts with a book than with the TV. Today’s moviegoer is a teenager or young adult. What becomes of an important medium that has something to say and can challenge people? Can movies make art and make money?

2. The Scope and Nature of the Film Industry 1.3 billion people a year see a film in the U.S. (in 1946 4 billion). Three systems: Production, Distribution, and Exhibition  Production: about 900 movies are made in the U.S. per year (up 600 films from 20 years ago due to straight to DVD and overseas importance). The importance of digital special effects has dramatically increased the costs of production.  Distribution: Advertising and promotion now account for ½ the cost of a film (avg. is $40-50 million). A huge decision is the number of screens a film will be released to.  Exhibition: more than 36,000 theaters in the U.S. Deregulation of the industry. Many theaters are owned by studios or are chains. They make much of their profit on concessions.

3. The Studios Three Types:  Major studios: Warner Brothers, Columbia, Paramount, etc. (About a dozen).  Corporate Independents: produce movies that look and feel like independent films but they are owned by the major studios.  Independents: raise their own money and look for distribution deals. Can look for more creative or riskier projects. Major studios and corporate independents account of 80-90% of all box office revenue but produce only ½ of all U.S. films.

4. Trends and Convergence in Moviemaking Most of the major studios are parts of international, giant conglomerates. The operate on a “blockbuster mentality”: formulaic films, concept films, sequels, remakes, franchise films and tie-in films that are low risk, easy to sell overseas, and lower on plot, character, and dialogue. Studios rely heavily on focus groups and audience research. Film studios are heavily intertwined with TV studios, cable, satellite, DVD, etc. Many studios make back money on films through profit generated from cable and DVD sales. Theaters are SLOWLY going to digital projection. Directors are moving to using digital cameras. There may come a time when digital distribution will take place: films will debut in theaters, on the web, on demand simultaneously.

5. Why Don’t We Go to the Movies Anymore? Recent movies aren’t very good. Fewer successful blockbusters means people aren’t there to see trailers for new films. As people go less frequently they don’t think about going to the movies as an entertainment option. Desperate studios overhype every new movie as the next big thing, leading to disappointment. It’s expensive. It’s loud and rude. There are full length commercials. New digital technologies. A generational shift away from the movie going experience.