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Le cinéma, une industrie ancienne de la nouvelle économie

  • Siroën, Jean-Marc

Cinema is a specific industry characterized by high fixed costs, non-rivalry of consumers, an exogenous price and different channels of diffusion. Despite of the boom of rival media (TV, recorders, DVD, etc.), the cinema in theaters is a growing industry which reinforces the domination of the American movies. The channels of diffusion are complementary rather than substitutes and the competition between media cannot be incrimated to the cause of a presumed crisis. Because this specificity the industry cannot work with the rules of perfect competition. The paper shows that the strategy of the big producers (majors) and the structure of the industry drive to a suboptimal level of production in all likelihood, mainly for the movies with relatively few spectators. This case might legitimate public interventions oriented to the elimination of the distortions. The French system to finance the industry, even successful in some aspects, should be improved with a more precisely defined targering and with consumer-oriented interventions.

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Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/6573.

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Date of creation: 2000
Date of revision:
Publication status: Published in Revue d'Economie Industrielle, 2000, Vol. 91. pp. 93-118.Length: 25 pages
Handle: RePEc:dau:papers:123456789/6573
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