![]() ![]() ![]() ![]() Last year, the Department of Justice announced that it was taking public comment on whether or not to undo the consent decrees it made with the film companies in that case. Paramount that America’s eight largest film companies engaged in illegal “price-fixing conspiracies” in order to “restrain and monopolize interstate trade in the exhibition of motion pictures in most of the larger cities of the country.” In essence, the major Hollywood film companies used their market power to take control over the film industry, all the way down to theaters themselves, in a process known as “vertical integration.” In 1948, the Supreme Court found in United States v. When theaters rely on a handful of films from the same companies to stay afloat, it gives those companies enormous leverage. Independent films and their groundbreaking, influential directors are increasingly relegated to smaller venues, which are also facing a crunch against declining ticket sales and an emerging theater oligopoly (AMC, Cinemark, and Regal) that controls half of all screens in America. As a result, the entire industry has become risk-averse. Movie theaters themselves are struggling to stay afloat, and thus have to rely on big-budget blockbusters that are guaranteed to earn a return. But while independent distribution companies like A24 have been responsible for some of the best and most well-received films in recent years, they increasingly struggle for a spot in major theaters. It may seem positive that independent films represent a greater share of overall movies released. This is despite the fact that these studios have been producing a smaller share of total films released for years now, with more and more coming from smaller studios. When you combine Disney’s massive share of the box office this year with the five next-largest studios, the current “Big Six” have taken in over 85 percent of box office sales this year. Disney’s emergence as a monopoly power in the film industry threatens the viability of creative independent films, places movie theaters under exploitative pressure, limits the diversity of films available, cheapens our culture, and worsens economic and political inequality.įirst comes the problem of independent film distribution. The harmful effects of this are far-reaching, with damage done to competition, wages, business formation, innovation, and more. economy is in the midst of a “ concentration crisis” in which industry after industry is being dominated by one company or a small handful of companies that control markets, and Hollywood is no different. ![]() Even if you consider yourself a dedicated Disney fan, this should concern you. Within the next couple of years, there is a good chance that the majority of all money made from wide-release movies will go into the pockets of the Walt Disney Company. And the 21st Century Fox deal gives Disney post-theatrical distribution rights for hundreds of major films, from Fight Club to Titanic. This isn’t lost on the increasingly franchise-focused company, as Disney is already planning for four more Avatar films. As a result, Disney now stands to profit from franchises like Avatar, Deadpool, Fantastic Four, Ice Age, Kingsman, Independence Day, X-Men, and more. This year, the Walt Disney Company finalized its purchase of most of 21st Century Fox’s assets, including the Fox film studio and Fox’s distribution deal with Regency Enterprises. Since then, Marvel Studios and Lucasfilm have been behind another 14 movies for Disney, earning hundreds of billions of dollars in ticket sales and countless billions more in merchandise and property tie-ins. By the end of 2015, Disney had surpassed its 1990s peak thanks to the release of ten wildly successful Marvel films and two Lucasfilm movies, including the start of its lucrative new Star Wars trilogy. ![]()
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