Industry Analysis & Industry Trends
Operators in the Movie and Video Production industry grappled with mounting film production costs and dwindling theater attendance. Many movie producers increasingly invested in high-cost special effects in recent years, shifting the focus toward generating high ticket sales rather than increasing the number of dramas and comedies, which bring in comparatively small revenue. New distribution channels, particularly online content providers, will provide new opportunities for the industry; however, this will come at the expense of movie theater ticket sales, which historically generate very high profit margins for producers... purchase to read more
Industry Report - Industry Investment Chapter
The Movie and Video Production industry exhibits a moderate level of capital intensity, due to the significant costs associated with production gear, location shooting equipment and professional movie editing software. However, movie producers often rent shooting equipment for a fraction of its cost, which has helped limit the massive capital expenditures that would otherwise be necessary to produce major films. In 2016, for every dollar spent on labor, movie producers incur an estimated $0.15 in capital expenditures. Capital intensity has declined slightly over the past five years.
The industry still relies on highly skilled workers and artists in all facets of the production process, and talented employees are vital to plan, shoot, edit and distribute projects... purchase to read more