1. 1 Motion Pictures Chapter 9 © 2009, The McGraw-Hill Companies, Inc. All rights reserved.

2. 2 CHAPTER OUTLINE History of the Motion Picture Motion Pictures in the Digital Age Defining Features of Motion Pictures Organization of the Film Industry Ownership in the Film Industry Producing Motion Pictures Economics Feedback Movies at Home

3. 3 HISTORY OF THE MOTION PICTURE Motion pictures (including TV) are possible because of: –Phi phenomenon (consecutive light sources appear to be single source that moves) –Persistence of vision (see image for split second after it has disappeared)

4. 4 The Edison Lab Thomas Edison & William Dickson –Edison thought profits would come from hardware sales Kinetoscope (1889) –Camera and viewing device –Sprocket-fed film Vitascope (1896) –Edison’s projection-version –Generated novelty interest, didn’t last

5. 5 The Nickelodeons Public interest rekindled when films began to be used to tell a story (narrative films) –Stationary cameras (Melies’ A Trip to the Moon) –Editing and movable cameras (Porter’s The Great Train Robbery) Nickelodeons: 50-90 seat theaters –Demand for films soared –New film studios were created

6. 6 Zukor and Griffith Introduced long films Adolph Zukor: Queen Elizabeth (4 reels) D. W. Griffith: 1915 Birth of a Nation (3 hours) –In response to racist content, films targeting black audiences appeared The Realization of a Negro’s Ambition (George & Noble Johnson; 1916)

7. 7 Birth of the MMPC Motion Picture Patents Company (1908) Tried to restrict movie production and distribution to the 9 companies making up the MMPC –Leading film and equipment makers pooled their patents Attempt backfired; independent producers and smaller filmmakers appeared By 1917, MMPC was powerless

8. 8 The Star System Independent studios capitalized on popularity of particular actors and actresses –Florence Lawrence, Charlie Chaplin, Mary Pickford –United Artists: studio created by the stars Interest in stars led to longer movies and more comfortable theaters

9. 9 Consolidation and Growth Increased costs encouraged consolidation –Filmmakers became distributors and theater owners –Theater owners bought film studios Block booking: theater owners had to book some lower quality films if they wanted to get the top films By 1989, US filmmakers controlled 80% of worldwide film market

10. 10 The Roaring Twenties Salaries and production costs skyrocketed Untamed excesses Industry tried self regulation –Motion Picture Producers and Distributors Association helped avert government regulation

11. 11 The Coming of Sound The Jazz Singer (1927), Warner Brothers –Sound film possible since 1918 Studios hadn’t wanted to spend money experimenting with sound Double features –Response to Depression’s affect on profits Technicolor and animation –Additional efforts to encourage attendance

12. 12 The Studio Years 1930-1950: The studio years 1939-1941: most significant period for motion picture achievement –Gone With the Wind, The Wizard of Oz, Stagecoach, Citizen Kane Government brought suit against several studios –Charge: Studios’ vertical control over production, distribution & exhibition presented a monopoly. 1948 ruling: studios must divest themselves of at least one type of holding (most sold their theater chains) Block booking was also prohibited (deprived studios of guaranteed exhibition for all their films)

13. 13 The Film Industry Reacts to TV Late 1940s: TV cut into movie profits Hollywood fought back: –Refused to advertise films on TV; refused to show old films on TV; tried to bar film stars from appearing on TV Hollywood tried to woo audiences back –Technology: 3-D, Cinerama –Content: “spectacle” films, musicals, adult-oriented themes Eventually Hollywood started cooperating with TV –Late 1950s began supplying programs to network TV

14. 14 Realignments: The Film Industry from 1960-1990 Major studio power declines & independent productions increase Hollywood works more closely with TV Film controls loosen; switch from regulating content to regulating audiences –MPAA rating system (G-PG-R-X) Updated in 1985 (PG-13; replace X with NC-17) Film revenue and budgets increase

15. 15 Contemporary Trends in Motion Pictures Challenges: Piracy and illegal file sharing Admissions continue to decline –Box office revenue has increased but that is due to higher ticket prices DVD sales/rentals are chief sources of income Six big companies dominate the industry Modern film content is highly varied

16. 16 MOTION PICTURES IN THE DIGITAL AGE The digital revolution is affecting all elements of the motion picture industry

17. 17 Making Digital Movies Most special effects are digitally-generated In some films, only the actors are real In some films, not even the actors are real

18. 18 Digital Distribution to Theaters Traditional distribution (physical) –Duplicated copies of celluloid film are sent to theaters Digital distribution (electronic) –Can use disc, satellite, optical fiber, Internet –Eliminates scratches, dust, “gate jitter” –Drawback: cost of equipping theaters to handle digital content

19. 19 Digital Distribution to Home Multiple sources for digital film content –Apple TV, AOL, MovieLink, iTunes Long range popularity remains to be seen

20. 20 Digital Projection Not yet manufactured in large scale Challenges: –Ensure color/sharpness of traditional film –Cost ($150,000 per screen) –Relatively few movie screens are equipped with digital projectors

21. 21 Mobile Movies Movies are probably the least portable of all media, but there are options. –Portable DVD players becoming more popular –DVD players installed in vehicles –Download to laptops –Experimenting with films on cell phones

22. 22 User-Generated Content Given the nature of film production, user- generated content is not yet a major part of the medium

23. 23 DEFINING FEATURES OF MOTION PICTURES Most expensive mass media product: High production, marketing, distribution costs Dominated by conglomerates Strong aesthetic dimension; medium most discussed as art form Movie-going continues to be social experience

24. 24 ORGANIZATION OF THE FILM INDUSTRY The film industry can be divided into three areas

25. 25 Production Films produced by variety of organizations and individuals Major studios finance/distribute independent films Major studios typically organized around –Film production –Distribution –TV production –Administration

26. 26 Distribution Supplying prints of films to theaters –Also distributes TV programs & DVDs Film advertising and promotion Most distribution done by large companies

27. 27 Exhibition Exhibitors over-expanded in the late 1990s By 2007, about 37,000 screens –Upgrades include digital surround sound and stadium seating –Multiplex (12-18 screens per theater) are still the rule Some exhibitors target older market Improved soundproofing and concessions; valet parking

28. 28 OWNERSHIP IN THE FILM INDUSTRY The film industry is dominated by conglomerates –Walt Disney Company (Disney; Touchstone; Buena Vista) –Time Warner (Warner Brothers) –Paramount/Viacom –Sony/MGM –NBC Universal –News Corporation (20 th Century Fox)

29. 29 PRODUCING MOTION PICTURES There are three main phases in moviemaking

30. 30 Preproduction Writing the story: –Story ideas, treatments, scripts Meanwhile, producer works on: –Financing, talent, behind-the-camera personnel, locations, general investment interest

31. 31 Production Actual filming of movie $400,000 - $500,000 per day (moderate budget) –Average 70 days –Less than 2 minutes of usable film per day

32. 32 Postproduction Editing Special effects Sound Release print

33. 33 ECONOMICS Movies are expensive medium. In 2007, average film cost $100 million to produce and market Revenue comes from –US and foreign box office –DVD –Miscellaneous video sources

34. 34 Financing a Film Financing options: –Direct loan from distributor –Pickup –Limited partnership –Joint venture Distributing revenue: –Producer and distributor agree on dividing gross receipts –Distributor first to be paid –Lastly, actual production costs are paid

35. 35 Dealing with the Exhibitor Distributor’s license sets terms of exhibition –Run length, holdover rights, dates, clearance –Financial terms include: Split percentage Sliding scale 90-10 deal Concession sales are major revenue source for theater owners Onscreen advertising also generates revenue

36. 36 Promoting a Film First three days are critical Pre-opening media promotion and advertising tries to get people into theaters for opening weekend

37. 37 FEEDBACK Film companies get feedback in various ways.

38. 38 Box Office Variety magazine: weekly box-office figures –Data provided by Nielsen Entertainment Data Incorporated

39. 39 Market Research Audience research is influential –Test pilot lines –Test scripts –Test rough cut of films Focus groups are often used to get detailed analyses of audience reactions

40. 40 Motion Picture Audiences Average weekly attendance is declining About 60% of audience is under 40 Frequent moviegoers (at least 12/year) account for ¾ of admissions –Young, single, well-educated, middle class, urban Attendance highest in July/August, lowest in May and 1 st two weeks in December

41. 41 MOVIES AT HOME Home video (Hollywood’s biggest revenue source) –DVD revenue has not expanded much in recent years –High-definition HD might reinvigorate the market –Home video market driven by big hits –Interval between theatrical and home release is shrinking Pay-per-view (PPV) Premium cable channels