Cartel Or Collapse? Study on Declining Profits In Independent Film

Research Paper Conclusions:

The economic difficulty faced by independent filmmakers is not a simple misfortune resulting from technological change; it is the calculated outcome of a system designed to suppress competition, acquire valuable IP at reduced cost, and eliminate the contractual obligation to share residual profits. The low profitability of the sector is structurally mandated by the dominant cartel.

This is a 15 page research paper, analyzing over 30 years of practices by the mainstream film studios in Hollywood. The essence of the paper is summarized in the quote above. The Motion Picture Association cartel exercises strict contractual and structural controls over distribution and exhibition which, as a result and in concert with their accounting practices and contractual rights, effectively ensure that an independent film will experience low or no profit, regardless of the actual views and revenues it enjoys.

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