Walt Disney Studios is a division of the Walt Disney Company and a major player in the movie and video production industry. Walt Disney Studios accounts for 14.9% of the market share in the film industry (Appendix C). The movie and production industry is valued at 32.9 billion dollars. In 2013 it had an estimated 2.5 billion dollar profit and 4.2 billion dollars in exports. From 2008 to 2013 it had an annual growth of -3.3% (Appendix A).
There are a few political factors that the movie and video production industry has to consider. Movies are exported all across the globe, and in fact 70% of annual box office revenue comes from international markets. Movie studios now accommodate other cultures by adding or deleting scenes or changing their formats. Distribution rights and trade agreements internationally play a strong role in the industry.
The changing economic environment has lead the industry to make certain changes. The Per capita disposable income has significantly decreased because of the recent recession, which has had an effect on people going to the movies. The main economic revenue of the industry has recently seen a great shift. DVD sales once commanded most of the revenue, but now it has shifted to a combination of DVD, blu ray and online streaming (Appendix B).
New technological advance play a consistently vital role in the film industry. Advances in video equipment and storage allow studios to make higher resolution movies with lower budgets. 3D movies have become important in the industry and have helped with box office success as well as blu ray sales. The movie industry will continued to develop new technologies to boost revenue and lower costs. Technological changes have also had a negative effect on the industry. Digital media has changed the way consumers get their movies, for the movie industry now suffers from their product being pirated online. The studios have been forced to adapt to the new technology, and incorporate digital...