The well-established movie business has high movie production costs, high movie promotion costs, and close relationships between movie studios and movie theaters. Online services such as Amazon Studios suggest possibilities for much lower movie production costs. The growth of social media and online advertising, as well as services such as Amazon’s Withoutabox, creates powerful means for low-cost movie promotion. Digital movie distribution can enable much more dynamic, data-driven placement of movies in theaters (“releases”). Movie theater revenue in the U.S. in 2008 was $11.4 billion. New possibilities for movie production, promotion, and distribution point to changes in the movie business and in the supply of long-form video content.
Related post: movie negative cost increased 60x since 1929