The decline and fall of the European film industry: sunk costs, market size, and market structure, 1890–1927¹

Abstract

________________________________________________________31. Introduction___________________________________________________4

ENDÜSTRİYEL KÜMELENME UYGULAMALARININ DÜNYA GENELİNDE İNCELENMESİ: Tarım, Sanayi ve Hizmet Sektörleri Açısından Bir Değerlendirme

“…Özellikle de pazarlama konusunda yapmış olduğu büyük ölçekli yatırımlar, Hollywood'a kitlesel pazarlara hizmet edebilirlik konusunda nispi bir verimlilik kazandırmıştır (Bakker, 2005;Lorenzen, 2007). Hollywood, dikey entegrasyon konusunda da diğer ülkelerdeki film kümelenmelerine göre büyük ölçekli pazarlama ve dağıtıma çok daha erken girmiş ve yine Hollywood dikey entegrasyondan uzaklaşarak üretim, pazarlama, dağıtım ve sergileme konusunda taşeronlara eğilmiştir (Cangel, 2009 (Cangel, 2009).…”

Review of periodical literature published in 2005

“…Comparative perspectives feature in several industry‐level studies. Bakker explains why the European film trade went from global leader to minor player in little more than two decades at the start of the twentieth century. A new paradigm in film‐making emerged around 1914, requiring large‐scale investment in production and distribution just as the European industry was fragmented and depressed by the war.…”

Sunk Costs and the Dynamics of Creative Industries

“…Endogenous sunk costs such as advertising or R&D can be chosen by the firm, and do not have a minimal exogenous level. Costs such as film production, scouting for and recording of musicians (A&R) or developing videogames are endogenous sunk costs because they are incurred once, cannot be recovered other than by selling tickets and their level can be chosen (Bakker 2005). This section will investigate how sunk costs and variety were affected by the industrialisation process, the role of product differentiation, and the relation between sunk costs and price discrimination.…”

“…Which of the two effects has the upper hand depends on the distribution of the willingness-to-pay and shape of R&D-costs associated to quality improvements (Bakker 2005).…”