Film Industry Struggles to Hold Steady on Shaky Ground

Most associate the movie industry with red carpets and multi-million dollar paychecks. But in reality, few industry workers see large paychecks or even have full-time employment.

Major and independent studios know that they will lose money on 80 percent of the films produced. According to the Motion Picture Association of America, in 2007, the average studio movie cost $106.7 million dollars to produce and distribute, the average studio-related independent movie $74.9 million. As a result, films must generate astronomically high revenues just to break even.

Major studios rely on the “Tent Pole System,” whereby the profits from one or two hits hopefully pay for all the losses. The result is that even with worldwide revenues exceeding $50 billion dollars, investors lose billions of dollars, studios teeter on the brink, independents fail at an alarming rate and survivors struggle to cover their operating budgets.

Despite the amount of money being generated and spent, those making the movies bear the brunt of the studio’s faulty financial structure. For the majority of those working on films, full-time employment does not exist. A crew member typically works on one film and then becomes unemployed while searching for another job.

With the increasing globalization of the film industry, runaway production and tough economic times, even for an industry normally considered recession-proof, rampant unemployment is the norm, affecting not only Hollywood, but also the economy at large. Now, some companies are looking to revolutionize the studio structure. One of those companies, Camelot Entertainment Group, incorporates the best of the old studio system with the technology and opportunity of the 21st century.

“We can provide workforce development, full-time employment and financial transparency while delivering profitable films,” says company chairman Robert Atwell. “We can create opportunities where the creative teams can unleash their talent while providing a platform for sustained economic growth. We just need to use the opportunities and tools available to change the way movies are put together, which will set the stage for Hollywood to become the dream factory for all involved, not just for the few at the top.”

For more information, visit www.camelotfilms.com.

Related posts: