Film distribution and exhibition in the EU
This paper examines the film distribution and exhibition sector in Europe. The general analysis of these sectors? situation was made. Moreover, the comparative and more in depth analysis of three countries by the Porter?s five forces model was made; These were United Kingdom, France and Denmark. The need for research was influenced by the fact, that 70% of the movies watched in Europe are of American origin. Moreover, the major companies within the film distribution market are also American, leaving 36% of the market for non- US companies. Due to the previous lack of studies on European film distribution and exhibition market from business and business law perspective and the shortage of more in depth analyses about the competitive environments, tendencies within the national markets, fair competitive situation for major and smaller- medium sized companies, this kind of analysis in this paper was done. The aim was to see whether there is a Single European Market within these sectors, or the situation differs from country to country.Overview of the legal environment show that at the European level various financial supports are offered in order to enhance European films? cross- border movement. The analysis on the competition law, show that the fair competitive situation in these areas should be constantly monitored, and sometimes the exemption for the somewhat dominant position might be provided in the economic industry?s downturn times. Paper also illustrates some of the national regulations, which could be considered to be standardized in the future at the European level. The business environment was analyzed from the Porter?s five forces model perspective, to determine what forces shapes the national markets? situation in the sectors as they are. The analysis of vertical integration and horizontal concentration was also included within the extended analysis. Types of Porter, Bartlett and Goshal strategies theories were used in order to understand the keys to success of the major European and non- European companies within both sectors. Finally, the paper concluded with the pre- historical background analysis of the American movies? success in Europe and moreover the importance of the language and the issues dealing with it were also discussed.The analysis concluded with the findings that the European Single Market is fragmented in these two areas. Pre- historical issues of American audiovisual sector?s participation in Europe, cultural variety and culturally unbiased American products impact the situation of similar feature- American films? dominance as it is from the film viewer?s perspective. From the further perspective the situation is impacted by American companies long time know- how, and mostly by the horizontal concentration and vertical integration and geographical scope of the markets they operate. Keywords: Competition law, European financial aid regulations, distribution, strategy, horizontal concentration, vertical integration, cultural differences, importance of the language, United Kingdom, France, Denmark.