Globalisation has significantly changed trends and patterns in the global film industry, at an estimated worth of $60 million annually film industry has become one of the most important in the creative businesses (Rosnan, H, Ismail, N.M., & Daud. N.M., 2010).
This research paper will cover the topic of the American film industry, globalisation and how globalisation has impacted on the change of the American film industry. I will also continue on to how the American film industry and its producers can integrate successfully internationally. American Film Industry
America has the oldest film industry, and also the largest in revenue. It has had a profound effect on cinema across the world since the early 20th century. The business of the film industry incorporates entertainment marketing and distribution strategies as well as corporate strategy, such as cost reduction initiatives in film financing, staff reorganisation, budgeting, and media technology (Film industry statistics, 2009).
The American film industry has always been an international business, and according to The Los Angeles (2011), with total box-office spending rising by one-third in North America in the past decade, and also doubling elsewhere, the business has dramatically increased. Globalisation of the American Film Industry
Despite the declining economy in America, the film industry stays strong, especially ‘Hollywood’ with impressive figures every year. Since the very beginning around the 20th century, the film industry has spread worldwide and grown exponentially while surrounding itself into everyday culture. World wide box office revenue came to approximately $29.2 billion; with the US taking up $10.6 billion, Europe, Middle East and Africa taking up $9.66 billion, Asia pacific taking up $6.46 billion, and Latin America taking up $2.66 billion. It is safe to say that the American film industry is very much a global organisation (Film industry statistics, 2009).
Globalisation is a process where local and international societies, e.g. cultures and economies become incorporate and become a ‘single world society’ (Croucher, S. 2004). The process of globalisation can be seen to be a movement supported by multinational corporations to gain larger financial profits by encompassing their commodities of goods and services across their own borders and reaching to supply a larger market, but at the same time misusing the cheaper labour market costs of third world countries. Globalisation is recognised as being driven by a mixture of economic, technological, socio cultural, political and biological factors (Croucher, S. 2004).
Globalisation can be seen as a positive way in creating opportunities for people, societies, organisations, cultures, and countries. It creates various prospects for sharing knowledge, social values, technology, and promoting developments at different levels, such as individuals, communities, and organisations across different borders and cultures. (Cheng, Y.C., 2000).
The American film industry is experiencing a substantial amount of transformation regarding globalisation. The majority of the transformation concerns consumption. That is, while exports of US films have been high for many decades, a growing number of Asian and European films are now exported globally, which creates some competition for the American film industry. The production of films is also regarded on the subject of the transformation towards globalisation. While the American film industry, namely ‘Hollywood’ have increased outsourced labour-intensive production activities to places such as Canada, India and other countries; European film productions are progressively becoming more worldwide or global (Lorenzen, M., & Vang, J., 2006).
The study of the film industry as a global phenomenon is a cluster of different and emerging strategies in building, and also sustaining competitive advantage at organisational, regional and national...
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Croucher, S.L. (2004). Globalization and belonging: the politics of identity in a changing world. USA: Rowan and Littlefield Publishers, Inc.
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Lorenzen, M. (2009). Creativity at Work: On the Globalization of the Film Industry. Retrieved May, 2011 from the Copenhagen Business School: www.cbs.dk/content/.../8-Lorenzen-Globalization_Film_Industry-08.pdf
Lorenzen, M., & Vang, J. (2006). Hollywood and Beyond: The Emerging Globalization of the Film Industry. Retrieved May, 2011 from Taylor and Francis Group: http://www.tandf.co.uk/journals/cfp/ciaicfp.pdf
Rosnan, H, Ismail, N.M., & Daud. N.M. (2010) The globalization of film business and its effect on the Malaysian film industry. Business Strategy Series, 11(5), 325 – 332.
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