Industrial economics, Hollywood case study

Since the 1920s, Hollywood dominates world cinema: the big Californian studios have developed a powerful industry whose ideological and economic efficiency has not really weakened. Indeed, the Hollywood industry is and has always been dominated by five or six big U.S. corporations. This hegemony is reflected by the control they used to exercise over the production and distribution, and their ownership on most of worldwide screens. During the 1950s, Hollywood entered a difficult period: From the economic perspective, the studios were forced by the U.S. government to split off from their cinema and they were fighting against a new competitor: the television.
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Plan :

The paper will be structured as follows: A brief and general overview the Hollywood industry in a historical perspective will be followed by a focus on the Major studios that dominate the sector by analysing carefully the Hollywood industry as a stable oligopoly. An attempt will be made to identify the portfolio effect of the Major studios giving them a certain advantage over the rest of the market. Finally, this essay will discuss the weekly figures and their impact on the market structure and the competitive process.
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Posté le 4 nov. 2014



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