Finance

As Hanseen (2007) summarised, 'The Hollywood studio system era' of vertical integration that impacted production, distribution and exhibition (because the major companies owned the cinemas) came to an end in 1948; "when the USA Supreme Court issued its famous Paramount decision. The Paramount consent decree required the divestiture of affiliated cinema chains and the abandonment of a number of vertical practices" (Hanseen, 2007)

Britain v Hollywood: Content 

* Hollywood started taking risks in the 1980s, producing massive thrilling, special effects driven adventurous films. By contrast, British films tended to be more conservative drawing on history and literature.

* British film makers tended to go down the path of 'gritty' social realism exploring social issues like homosexuality, drug taking, poverty, racism, class, religion etc. whereas Hollywood tended (and still tends) to avoid this in favour of glamorous escapism/fantasy that supports dominant social groups/ideologies (e.g. as Medhurst (1997) summarised "straight, middle class, able bodied white males" are in the staring roles etc.) - this obviously helped Hollywood films remain more lucrative because the majority of people in their target audience felt represented by this. 

* Hollywood grossed more profit/had more investment therefore could afford to continue affording the latest technology for special effects/filming/editing and the most talented people in the industry - this made British films look cheap in comparison (hence why UK cinemagoers began to prefer USA films and why British films found it hard to break into the international market place). 

Britain v Hollywood: Production/Distribution

* British films do not attract as much investment as Hollywood films and do not gross as much profit meaning Britain has less money to spend on the production of new films.

* Britain's film industry went down hill after two World Wars where Hollywood saw the need for escapist films and profited from this (the UK was harder hit as it was actually bombed but it also continued to make social realist films that did not cater for the post-war audience as well as the escapist films the USA was producing).

* Hollywood had always been good at production, vertical integration accounts for a lot of this because big conglomerate studios work together to produce films and this means the resources (financial, equipment and people) are always there allowing for continuous improvement. Britain does not have the same set up making it a lot harder to produce films. 

* Hollywood has had better 'business sense' in terms of production (vertical integration conglomerate set up) and distribution. In terms of distribution, Hollywood has developed a system that allows films to be exported around the globe in a way that ensured cinema exposure and profit. Britain has not manage to do this, even in the UK they often rely on USA distributors who have the right connections with multiplex cinemas etc! It is important to note that a number of multiplex chains are owned by USA companies (and have been since the 1980s - the point when British films hit an all time low) and this obviously has had a negative impact on the British film industry because it makes it harder to get British films in the cinemas without a USA distributor

Average annual UK Productions:
Under £2 million - 30
£2-£5 million - 30
£5-£10 million - 15
£10+ million - 6

What does the money get spent on? 

Below is a summary of the production/distribution/exhibition cycle as defined by the UK Film Distributors' Association (OCR 2008): 

Pre-Production 

(funded by production company)

• Producer/studio acquires rights to film story or treatment OR an independent production company chooses a production company/distributor (e.g. British production company makes the decision to work with major Hollywood company for production and distribution - using vertical integration - or seeks funding for production from UK sources then selects/attracts a Hollywood distributor). Hollywood has the advantage as it has more money to spend securing the rights to films. 
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• Screenplay is developed (script, storyboards etc.) - Hollywood has advantage as it employees more writers and can afford the best 'talent.'
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• Production finance and cast/crew are confirmed, locations are confirmed, scheduling takes place, call sheets are created, costume fittings happen, equipment is organised. Hollywood has the advantage as it can afford to spend more on big name stars, directors (even great British directors like Hitchcock get lured to Hollywood), experienced crew, locations, costumes and equipment. 

Production

(funded by production company)

• Principle photography takes place, in studios and/or on agreed locations (on average this takes 3 months). Hollywood has the advantage as vertical integration means access to studios, equipment etc. Also, they can afford to spend longer on shoots. 

Post-Production

(first two stages funded by production company, the other stages are funded by the distribution company)

• Post production (editing and scoring) takes place, test screenings taken place that the producer feels are necessary after getting feedback from the primary target audience (could even include re-shooting some scenes). Hollywood have the advantage because they can spend more of employees, editing equipment/technology and music rights.   
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• Master print of finished film delivered to distributor. USA distributors have the advantage because they can afford to produce more prints for blanket release. 
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• Distributor determines national and international release strategies and date (where/when/how in each country - also decide on premieres, film festivals etc.)
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• Distributor presents film to exhibitors and negotiates bilateral agreements to have film shown in cinemas
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• Distributor's marketing campaign creates 'hype' amongst target audience (a 'want to see' buzz) and launches film (marketing takes many forms, big Hollywood conglomerates have the advantage because they can use synergy across range of media platforms)
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• Prints are delivered to cinema a few days before opening - Hollywood films have the advantage because multiplex cinemas are loyal to Hollywood films for profit reasons. 
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•  Film's run extends any number of weeks subject to demand 
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• Marketing of home media begins after the film has left cinemas. Hollywood companies have the advantage as they have more to spend on marketing. 
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• Film is released on DVD, Blue-ray and becomes available to download. Home media sales is often where British films make the most profit - they can compete on a more level playing field at this stage as the production costs of DVDs etc is less than reels. 

 Task: Using your case studies write an essay comparing and contrasting your films during each step outlined in the production/distribution/exhibition cycle. You will effectively be answering this past paper question: 

"Discuss the ways in which media products are produced and distributed to audiences, within the media area you have studied."