1. Ownership Issues
Issues Independent Studios Major Studios
1. How easily/
widely can films be
distributed?
Harder – They have a lower budget than larger
companies so with high prices to distribute and
the fact that they don’t have other integrations
puts them at a disadvantage.
It depends on the type of distribution and the price
of said method (e.g. television would be more
expensive than just DVD)
Easier – because of vertical integration it is possible
that they own a distribution company (e.g. Disney –
Disney Channel)
However if they don’t they have enough money to
distribute in means they wish.
2. How profitable
are the releases for
the company?
Low Profit – Instead of a larger productions, Niche
films are made so there is a lower target audience
so that would lead to lower profit.
Also there would be no reputation which would
also lead to less profit.
High Profit – Due to well known identity as well as
previous film reputation there is a larger target
audience and therefore a larger profit.
They also gain profit due to their other owned
companies such as TV and Theme-parks.
3. How much
creative control do
the makers of the
films have over the
films they produce?
Low Control – The company has to rely on others
for funding which could be withdrawn at any
moment.
They also have little money to spend on their
desired effects.
However they don’t have to rely on other
producers so they have more overall control.
High Control – The company has enough money for
their effects as well as hiring the cast and crew they
desire so it is under their control.
However, if the film is based of another form of
media (e.g. book) then there is less control as the
author has more control over the final production.
4. How easy is it for
them to get
funding?
Hard – Because they wouldn’t have much profit
form previous productions, they would possibly
have to go to many external sources to gain secure
funding as well as persuade external companies to
fund their project.
Some companies may look over the proposal as it
most probably won’ t be what appeals to the mass
market
Easy – The have high income from previous
productions as well as willing supporters due to
positive reputations and previous productions that
have appealed to high market audiences.
Also because of both horizontal and vertical
integration they have multiple sources of income
and popularity.