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The issue is that the product is scalable, desirable, profitable, and the work can be done by almost anyone. Industries like this are natural monopolies where

• Retric 3y ago
  Making profitable movies is really really difficult. Just look at the huge list of failed studios. It’s not just getting a good script it needs to be the right scrip at the right time, which can actually be filmed on an appropriate budget. A huge issue is you need a large team of world class people that all work together, and then the movie ends in a few weeks or months and all those people need to find work on the next project. Actors, costumes, lighting, props, etc generally end up being very expensive sub contractors which you need to schedule together because a studio has trouble just paying those people year round. So now each of those subcontractors is going to be one of a handful of people/companies also need enough work to keep going etc etc. And all of that isn’t even considered actors, post production, test audiences, promotion, etc.
  • scoofy 3y ago
    > Making profitable movies is really really difficult. Just look at the huge list of failed studios. You can make indie films for pennies. The fact that so many studios fail is exactly my point. Films are so easy to make, that you create an arms race in production costs. If there were no major studios, our theaters would still be full of fine feature films.
    • Retric 3y ago
      The overwhelming majority of indie films are unprofitable. You may personally enjoy many indy films more than what comes out of major studios but they’re niche products that mostly appeal to a specific and relatively small audience. If you want wide appeal costs really do spiral both for the film and just as importantly advertising it.
      • scoofy 3y ago
        Again... my entire argument is that industries, like the film industry, are like an arms race, and are natural monopolies. > The overwhelming majority of indie films are unprofitable. We should expect this in this type of industry! My point is only that if the big studios were to go away, the film industry would still survive and reconstitute itself very quickly. The only reason why it's so difficult to make a profitable movie, is that there is limited, very expensive, access to getting a film in front of people. There are still large audience who seek out film, but the number of films they can consume is limited... this leads to a virtually unwinnable arms race to get people's attention. Studios need to spend "$35.9 million on average" on marketing alone, which is an obvious nod to the fact that the industry is a natural monopoly: https://entertainment.howstuffworks.com/movie-cost1.htm https://entertainment.howstuffworks.com/movie-cost1.htm
        • Retric 3y ago
          Having major studios go away doesn’t make people go see new movies. You need publicly go get people in seats which has both an actual cost and requires content they might be interested in. Movie theaters are happy to show independent films that have significant buzz. And several independent films have done so, but that’s such a small percent of total independent films as to suggest it’s hard.