Week 7 Why are American movies so successful? First, in many ways American cinema got a head start in the film business. True as a result of WW1 and WW2. During those times, film infrastructure was destroyed and things were unsafe. o This gave American film makers the opportunity to take advantage of the situation to come in and film the situation of WW1 and WW2. Impact of money and marketing. Large studios at the time when filming was relatively climbing, they had a large budget for marketing. To this day, films still spend a lot of money in marketing. o Most expensive movie: Avatar (400M 150M to marketing). o Film companies in countries outside of the U.S simply do not have the money. o Larger companies in U.S get money from their parent company (e.g. warner bros. gets money from time warner). U.S was the first middle class society with a significant number of people earning decent salaries (other countries developed middle class later). o Citizens in U.S in the 1920s and 1930s had middle class people. Money can be spent in bulks which fed the movie industry. Large domestic market evident. Lacked in other nations due to no middle class present in them. During the years when cinema was growing (1890s 1930s), many immigrants were coming to the U.S (Mainly European). People brought when them various different traditions, cultures and languages. o U.S is multicultural. o Significant: Americans made movies that had simple themes, straight forward narratives, action is understandable. So everyone (with different backgrounds) can watch movies. o Even until today simple understandable themes are still evident (e.g. good vs bad). o Other countries lack this sense of generalism in their movies. American film studios were enrolled in to the motion picture association of America. Was created to help studios create more money, to work together to export American films, to distribute films to the outside. o Rather than competing, they started cooperating with each other (illegal) o Film studios divided up markets so they can maximize profits by pooling in people. Collapse of communism. Communism stopped in 1990. Communist empire was made up of the Soviet Union, Eastern European nations. Western businesses were unable to conduct business there (American films cannot be shown there). o Communism collapsed eventually and had an access to postcommunist market. Last 3040 years. More people in the world with money, global prosperity, middle class evident in Asia. Middle class people are willing to purchase American products.