PRODUCT DIFFERENTIATION AT THE MOVIES: HOLLYWOOD, 1946 TO 1965

John Sedgwick

59 citations0/0 files storedThe Journal of Economic History

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Cinema and Media Studies Cinema History and Criticism Cultural Industries and Urban Development

Abstract

In the post–Second World War period the floor fell out of the market for films in the United States. However, while the average revenue of films fell, the “hit” end of the market sustained itself. The growing inequality in the distribution of revenues meant that the risks associated with high-budget productions could no longer be balanced against the steady earnings of medium-budget films. During the 1950s the “majors” all became distributor–financiers as they reduced their exposure to the risks associated with film production. In doing this they retained their dominant position in the industry.

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1929Stability in Competition 1990Stability in Competition 1974Advertising as Information 1969Economics of Outdoor Recreation.1991Sunk Costs and Market Structure 1992Sunk costs and market structure 1997Information, Blockbusters and Stars? A Study of the Film Industry 1994The World of Consumption.

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