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PRODUCT DIFFERENTIATION AT THE MOVIES: HOLLYWOOD, 1946 TO 1965

Published online by Cambridge University Press:  11 October 2002

John Sedgwick
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Abstract

In the post–Second World War period the floor fell out of the market for films in the United States. However, while the average revenue of films fell, the “hit” end of the market sustained itself. The growing inequality in the distribution of revenues meant that the risks associated with high-budget productions could no longer be balanced against the steady earnings of medium-budget films. During the 1950s the “majors” all became distributor–financiers as they reduced their exposure to the risks associated with film production. In doing this they retained their dominant position in the industry.

Type
ARTICLES
Information
The Journal of Economic History , Volume 62 , Issue 3 , September 2002 , pp. 676 - 705
Copyright
© 2002 The Economic History Association

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