Decentralization and equitable resource distribution are made possible by competition law, which also aids in reining in government monopolization of some industries.
Tripti Bhushan, Lecturer, Jindal Global Law School, O.P. Jindal University, Sonipat, Haryana, India.
The growth of alternate ways of film distribution through television and video has an impact on the industry’s competition, which has long been a source of concern. Film distribution competition analysis must look at the following: Firstly the relevant market definition, including substitutability between “first run” and other films and between various distribution media, including cinema, television, and video; ii) the level of concentration in the distribution of substitute products; and iii) the presence of entry barriers, including those caused by regulation or industry practice.
Vertical integration between distributors and cinema owners, ties between distributors and producers, and horizontal concentration at the distributor level all pose threats to competition. When distributing first-run movies to theatres, the producer must decide which theatres to employ based on factors like location or supplementary services.
Since box office results—on which the value of television and video rights and international sales is based—are frequently based on relatively small markets, cinemas located in key markets will be preferred; similarly, cinemas that offer greater financial guarantees, for example, will be sought after by producers. For movies that aren’t first runs anymore, the producer must determine whether the return would be the same if they were broadcast on television, the big screen, or on video, or if one of these distribution methods is better than the others. To this point, the producer might find it beneficial to keep an eye on consumer behavior. Television, followed by video, and then the theatre are probably the three formats that elderly moviegoers favour.
Published in: New Americans Magazine
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