Spread to world markets




In 1912, American film companies were largely immersed in the competition for the domestic market. It was difficult to satisfy the huge demand for films created by the nickelodeon boom. Motion Picture Patents Company members such as Edison Studios, also sought to limit competition from French, Italian, and other imported films. Exporting films, then, became lucrative to these companies. Vitagraph Studios was the first American company to open its own distribution offices in Europe, establishing a branch in London in 1906, and a second branch in Paris shortly after.

Other American companies were moving into foreign markets as well, and American distribution abroad continued to expand until the mid-1920s. Originally, a majority of companies sold their films indirectly. However, since they were inexperienced in overseas trading, they simply sold the foreign rights to their films to foreign distribution firms or export agents. Gradually, London became a center for the international circulation of US films.

Many British companies made a profit by acting as the agents for this business, and by doing so, they weakened British production by turning over a large share of the UK market to American films. By 1911, approximately 60 to 70 percent of films imported into Great Britain were American. The United States was also doing well in Germany, Australia, and New Zealand.

More recently, as globalization has started to intensify, and the United States government has been actively promoting free trade agendas and trade on cultural products, Hollywood has become a worldwide cultural source. The success on Hollywood export markets can be known not only from the boom of American multinational media corporations across the globe but also from the unique ability to make big-budget films that appeal powerfully to popular tastes in many different cultures.

With globalization, movie production has been clustered in Hollywood for several reasons: the United States has the largest single home market in dollar terms, entertaining and highly visible Hollywood movies have global appeal, and the role of English as a universal language contributes to compensating for higher fixed costs of production.

In the meantime, Hollywood has moved more deeply into Chinese markets, although influenced by China's censorship. Films made in China are censored, strictly avoiding themes like "ghosts, violence, murder, horror, and demons." Such plot elements risk being cut. Hollywood has had to make "approved" films, corresponding to official Chinese standards, but with aesthetic standards sacrificed to box office profits. Even Chinese audiences found it boring to wait for the release of great American movies dubbed in their native language.

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