Motion Picture Production & Distribution Industry Profile

The US motion picture production and distribution industry includes about 11,000 companies with combined annual revenue of about $60 billion. Major companies include Disney, FOX, MGM, Paramount, Sony Pictures, Universal, and Warner Bros. The industry is highly concentrated: the 50 largest companies account for about 80 percent of revenue.

The top motion picture studios are generally part of larger media companies. Most companies in the industry engage in both production and distribution of motion pictures; about 500 companies are solely distributors. Production and distribution of television programs is included in the industry but discussed in a separate profile.

Motion picture production and distribution generates roughly $120 billion a year globally, according to separate reports by the Motion Picture Association of America (MPAA) and PricewaterhouseCoopers. Europe, the Middle East, and Africa represent nearly half of international box office revenue, while the Asia/Pacific region represents more than 20 percent. Leading companies based outside the US include Spain's Promotora de Informaciones, Toho Co of Japan, and Danish firm Egmont International Holding.

COMPETITIVE LANDSCAPE

Consumer spending drives demand. The profitability of individual companies depends on creativity, marketing, and distribution. Large companies often have the advantages of long-term contracts with key actors and directors, a permanent staff of technical employees, and wide distribution networks. Small companies can compete successfully by creating marketable movies, often for niche audiences, on low budgets. The industry is capital-intensive: average annual revenue per ...