III. Industry Analysis
There are 4,510 movie and video production businesses in the US with a market size of $17 billion.
The primary positive factors affecting this industry are the demand from movie theaters and the trade-weighted index. In recent years, film producers have begun to subsidize production costs through the sale of in-movie product placement. In addition, high-profile films often attract co-branding deals with marketers outside the industry.
Total advertising expenditure is also expected to drive revenues, representing a potential opportunity for the industry. As a majority of content is video-driven, the need for the industry’s services is expected to continue to rise.