Question: What are the main ‘advantages’ that have enabled American firms to dominate the global film industry over the last 100 years? By what means have they sought to exploit these advantages?

Expert answer

American film studios have long been the dominant force in the global film industry, thanks to a number of key advantages. Firstly, they have access to large amounts of capital, which has allowed them to invest heavily in movie production and marketing. Secondly, they have a long history of experience in the film business, which gives them a significant competitive edge. Thirdly, they are located in Hollywood – the entertainment capital of the world – which gives them excellent access to talent and resources. Finally, they have strong relationships with major distributors around the world, ensuring that their films reach a wide audience.

These advantages have enabled American firms to produce some of the most successful and popular films of all time. Some of the most iconic and successful franchises – such as Star Wars, Jurassic Park and The Lord of the Rings – have all been produced by American studios. American films also tend to be very successful at the global box office, with many of the highest-grossing films of all time coming from Hollywood.

In recent years, however, American studios have faced increasing competition from other countries. In particular, countries like China and India have begun to invest heavily in their own film industries, producing a number of successful and popular films. As a result, Hollywood’s dominance of the global film industry is no longer as absolute as it once was. Nevertheless, American studios remain the most powerful force in the business, thanks to their key advantages.