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The Changing Role of Hollywood in the Global Movie Market

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  • W. D. Walls
  • Jordi McKenzie

Abstract

Does Hollywood dominate world cinema markets with American taste, culture, and values through the exportation of films produced mainly for its domestic (US and Canada) market? Or does Hollywood supply the films that world audiences demand and, because of the logistics of distribution, screen these films first in the domestic market prior to exhibition in foreign markets? In this article, the authors empirically analyzed the global market for motion pictures to provide statistical evidence that can speak to these questions. They examined data on nearly 2,000 films exhibited from 1997--2007, inclusive, in the United States and Canada, Australia, France, Germany, Mexico, Spain, and the United Kingdom—markets that today collectively account for over 75% of worldwide cinema box-office revenue. The empirical evidence provides support for the hypothesis that the supply of Hollywood films has accommodated global demand as the relative size of the U.S. domestic market has decreased. There is no evidence that box-office success in the United States creates a contagion that spreads to other film exhibition markets; however, box-office success in international markets appears to be less uncertain for films that have been successful in their U.S. releases.

Suggested Citation

  • W. D. Walls & Jordi McKenzie, 2012. "The Changing Role of Hollywood in the Global Movie Market," Journal of Media Economics, Taylor & Francis Journals, vol. 25(4), pages 198-219, December.
  • Handle: RePEc:taf:jmedec:v:25:y:2012:i:4:p:198-219 DOI: 10.1080/08997764.2012.729544
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    Cited by:

    1. Jordi McKenzie & W. Walls, 2013. "Australian films at the Australian box office: performance, distribution, and subsidies," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, pages 247-269.
    2. Ronnie J. Phillips & Ian C. Strachan, 2016. "Breaking up is hard to do: the resilience of the rock group as an organizational form for creating music," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, pages 29-74.
    3. Sangkil Moon & Barry Bayus & Youjae Yi & Junhee Kim, 2015. "Local consumers’ reception of imported and domestic movies in the Korean movie market," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, pages 99-121.
    4. Jordi McKenzie & W. Walls, 2013. "Australian films at the Australian box office: performance, distribution, and subsidies," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, pages 247-269.
    5. Hermosilla, Manuel & Gutierrez-Navratil, Fernanda & Prieto-Rodriguez, Juan, 2017. "Can Emerging Markets Tilt Global Product Design? Impacts of Chinese Colorism on Hollywood Castings," MPRA Paper 82040, University Library of Munich, Germany.
    6. McKenzie, Jordi, 2017. "Graduated response policies to digital piracy: Do they increase box office revenues of movies?," Information Economics and Policy, Elsevier, vol. 38(C), pages 1-11.
    7. Sora Park, 2015. "Changing patterns of foreign movie imports, tastes, and consumption in Australia," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, pages 85-98.

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