Film industry Contribution to US Economy

Film industry Contribution to US Economy

According to the latest Motion Picture Association of America news, the US film and television industry supports more than 1.9 million jobs in the country. This includes writers, actors, accountants, dry cleaners, and more. Additionally, the film industry is a key driver of the US economy, creating a ripple effect throughout other creative sectors. Each year, the film and television industry contributes $41 billion in sales to local businesses while paying $16 billion in federal and state taxes.

As film and television shows grow in popularity, so does the amount of money spent on their production. Often many independent producers focus on planning and assembling film portfolios; other film companies sign contracts with them in order to finance them. They also market and distribute their films around the world. The production industry provides jobs in various sectors, including advertising, PR, and transport jobs. These figures show that the film Industry's contribution to the US economy is quite significant.

Streaming services: Recently, the Motion Picture Association of America (MPAA) released new figures highlighting the film and TV industry's positive contribution to the US economy. The organization analyzed data from the Bureau of Labor Statistics, a government agency. In 2015, the industry supported 2.1 million jobs and 400,000 local businesses, generating over $49 billion in local spending. As such, it continues to play an important role in the American economy, generating more jobs than any other industry.

While several streaming services first started as content clearinghouses, many have embraced production to their own ends. A notable example includes Amazon Prime Video's Transparent Hulu Originals. The Handmaid's Tale, which was wildly popular when it first launched, is another example. Evidently, this era of streaming also spawned new entrants. For instance, Netflix's rival Hulu introduced The Handmaid's Tale in 2017, and Amazon Prime Video launched Transparent in 2014.

Film quality: Undoubtedly, film production has long been a vital part of the US economy. However, its value has been in doubt for some time. Think of it: In the early years of the industry, movies were sold outright, and the cinema owner received marginal profits for each film sold. Thus, an extra film ticket sold meant pure profit for the cinema owner. You can guess that this discouraged consumers from buying short film packages. Gradually, with the rise of feature films, many producers began investing heavily in feature film portfolios. They purchased films by well-known actors, the rights to famous novels, extravagant sets, and starring directors. As a result, US cinemas began to become vibrant, even dominant.

Today the American film industry is far more profitable than its European counterpart. Interestingly, the typical US-made film costs around fifteen million euros to produce; it's almost a hundred percent privately funded. It may cost 58 million euros and reach a 10.5 million audience – this represents a seventy-fold difference. Moreover, the US film industry's gross return on investment and profit margin may be five times greater than its European counterpart.

Postwar entry strategy: In retrospect, the film industry made a major contribution to the US economy after World War II. This became evident after the veterans were able to start their own families and attend college on the GI Bill. They also began buying homes in the suburbs and investing. The film industry's contributions to the economy were substantial because they allowed the US to access a lucrative market, while British films would now compete with Hollywood movies. Moreover, these films would increase the overall income of the majors in both England and the United States.

Immediately after the Second World War, real box office revenue decreased sharply. It rebounded in the mid-1950s and then stabilized again, and remained at the same level until the mid-1990s. While real box office revenue per screen decreased during this time, the number of screens increased steadily after 1963. By the 1990s, the number of screens had doubled the amount it was in 1945. The proliferation of screens primarily coincided with a decline in capacity per screen; in turn, this helped segment the market. From 1945 to 1960, real box office revenue per screen dropped by nearly 50%. The 1960s, however, saw a rebound. From 1970, however, revenue per screen declined steadily.

Ultimately, the film industry's performance in the postwar era was not without its challenges. As a result, Hollywood had to deal with the emergent anti-Communist propaganda, a decline in global trade, and a host of other problems. In spite of these difficulties, the industry managed to hold its own in the midst of cold war tensions, the rise of the anti-Communist movement, and the implementation of protectionist policies in Britain, France, and Italy.