Split Screens

Split Screens

With the Oscars on tonight, it is interesting to take a look at the economics of Hollywood; both film and television. The market for movies is adapting to our changing culture and the model for film is drastically changing. The movie industry is declining, and growing slower than television, mostly due to advertising and fees from cable providers, which film cannot do. This leads to a stable and profitable business, the opposite of what the film industry relies on. The main reason for this decline is the way people view media and entertainment. They don't even have to leave their homes to have it anymore. The rising cost of films and declining sales are caused by new businesses like Redbox and Netflix that cut into DVD and Bluray sales. Flops have become scarier due to rising costs because of more effects and less content. This trend has really hit the businesses in film hard, and have caused them to consider skipping the release of films into cinemas all-together, instead releasing them straight to a streaming service. The Oscars are a huge event that garners a lot of attention, but it is interesting to note that this industry is declining and is not as successful as it appears.