New Millennium of Filmmaking
In the New Millennium of filmmaking, Hollywood operates according to a synergy marketing strategy. This is because the new Hollywood of Today is no longer controlled by the former studio giants founded during the studio system that was prevalent from the early 1920s to the 1950s. Columbia, Warner Brothers, Twentieth Century-Fox, Universal, RKO, Paramount Pictures, and Metro-Goldwyn-Mayer are not structured in the same way they were years ago. Today, the Hollywood film industry is quite different.
For example, the majority of the profits from a motion picture release do not come from box office ticket sales as they did during the studio system years. The bulk of the profits come from a myriad of other marketing avenues. In the Hollywood of Today, film production companies give official, legal permission to market their movie characters and corresponding stories to other business markets for increased profits. These businesses include sale of books, music, clothing, games, digital streaming and downloads of movies through television, sale of optical disk media, amusement parks as well as a multitude of other synergistic sales avenues.
This was not the case during the earlier studio system where the majority of profits came from ticket sales. Therefore, even though a studio in Hollywood today may look the same physically on the outside, it operates to a completely different way of business on the inside.
Film Studio Ownership by Large Businesses and International Conglomerates
Hollywood film studios and independent filmmaking companies are now owned by large businesses and international conglomerates. These large corporations have a myriad of business industries under single ownership. As a result, motion picture production and distribution is just one of the many types of business aspects that these huge firms receive money from on a regular basis. Examples of the transition of independent film studios to large business firms include:
(1) Columbia Studio is now owned by Sony Pictures Entertainment, a subsidiary of Sony Corporation,
(2) Warner Brothers is now owned by Time Warner, Inc.,
(3) Twentieth Century-Fox is now a subsidiary of News Corporation,
(4) Universal Studios is a subsidiary of NBC Universal which is now owned by General Electric,
(5) Paramount Pictures is now owned by Viacom International, and
(6) Metro-Goldwyn-Mayer (MGM) is partly owned by Sony Corporation along with several other large business firms.
Business Structure and Operation in the New Millennium of Filmmaking
In the Hollywood of Today, Hollywood film studios are no longer independent. They are now owned by large international firms and businesses. Therefore, Hollywood film production and distribution is only one of a multitude of different types of commerce these huge conglomerates participate in on a daily basis. Hollywood film revenues represent only one portion of a large corporation’s business dealings. As a result, this new business structure and commercial framework has resulted in a blockbuster/sequel frame-of-mind upheld by a synergy marketing strategy.
With the many different types of marketing avenues now available through the commercial enterprises of large business firms and international conglomerates, the Hollywood of Today has transitioned to a film style and mode of production that capitalizes on the concentrated synergistic effect of film-related sale of merchandise and other media offshoots.