Deck 2: A Business Overview of Film

Question 1

What is the value of the intellectual property of film?

Answer 1

The value is the right to exploit it, make copies of a film and license and sell it.

Question 2

As intellectual property, what elements within a movie can be further exploited?

Answer 2

Characters, story elements, licensing of production elements, spinoffs and other media.

Question 3

What does the complex and collaborative nature of filmmaking rely upon?

Answer 3

It relies on the successful collaboration of creative artists, and large financial investment.

Question 4

Why does film take a long time to make and sell?

Question 5

What is the structure of the film industry now, monopoly or oligopoly?

Question 6

How is movie consumption cyclical?

Question 7

What is price elasticity?

Question 8

How are movie tickets price elastic?

Question 9

What are 2 of key characteristics of the movie industry?

A) Film is intellectual property
B) Managing creative talent
C) Film is a global product
D) Film takes a long time to develop, produce and market
E) Market Structure - Oligopoly versus Monopoly
F) Cyclical
G) Price elasticity

Question 10

What are the principal functional sectors of the industry?

A) Production
B) Movie Sound Stage
C) Distribution
D) Actor
E) Exhibition

Question 11

Which description does NOT describe the studios:

A) Owned by a public company
B) Paramount Pictures
C) Don't work together to control technology and pricing
D) Horizontally and Vertically Integrated
E) Oligopoly

Question 12

Disrupters to the film industry consist of:

A) Online streaming services aggressively producing content
B) Netflix
C) Amazon
D) Smartwatches

Question 13

If a studio is vertically integrated, what do they control? Some aspect of each of movie:

A) Production
B) Exhibition
C) Word of Mouth
D) Distribution

Question 14

Production consists of the actual shooting of a film.

Question 15

Studios with their resources, experience and expertise, do not dominate film distribution.

Question 16

Exhibition takes place at a retail level where viewers pay to see a movie.

Question 17

Netflix is a streaming service is no threat to the studios.

Question 18

Netflix and Amazon are spending aggressively on production, disrupting the studios.

Question 19

Telco companies AT&T, Verizon and cable giant Comcast are not interested in getting into movies and pose no potential competition to the studios.

Question 20

Netflix and Amazon do not exert pressure on the industry; in fact, these companies are making things much easier for the studios.

Question 21

Television hurt the movie industry, creating significant competition to movies.

Question 22

Indie filmmakers could benefit from new media players as they spend capital on movie content.

Question 23

Describe why studios may be threatened by the new media players creating movie content.