Some Economic Aspects of Motion Picture Production and Marketing

Abstract

I r THE motion picture industry is said to have a total capital investment of two billion dollars in the United States alone. value of its product, however, amounts to only 0.26 per cent of domestic manufactures. Considering this relatively small volume percentage, the industry would not be worthy of intensive discussion were it not for certain factors which set it apart. It assumes a position of particular economic interest because of (i) the rapidity of its development; (2) its geographic concentration; (3) its peculiar marketing and production problems; (4) its far-reaching influence upon social and economic standards and conduct. This infant so-called, has had a remarkable and interesting history, its growth having been nothing short of phenomenal. Out of this rapid development have come certain conditions which are particularly interesting to the student of economics. Consequently, a brief sketch of the highlights of the industry's evolution will make for clearer understanding of the existing state. In the history of the motion picture industry, the period up to I903 is not particularly important, due to the fact that the industry as such had as yet attained very little stature. year I903, however, saw the sudden increase in value of all devices connected with the industry. phenomenon giving rise to this condition was the discovery, with the production of The Great Train Robbery, that the motion picture could tell a story. demand for the photoplays subsequently produced was so great that theaters arose by the hundreds. Producers, distributors, and manufacturers of equipment became suddenly affluent. let-