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Hollywood's Influence on Global Culture

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Chelsea Wilson

on 22 July 2014

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Transcript of Hollywood's Influence on Global Culture

Hollywood's Influence on Global Culture










Textbook: International Business, The New Reality
In Conclusion...
"Last year the imported stuff made some 16.4 billion roubles: more than five times as much as the home-grown product"
Question 4: Protectionism
Question 3
In what ways have movies influenced managerial tasks, company activities, and other ways of doing business around the world?
A Little History
Question 1
How Hollywood movies affect national culture outside of America?

Why Hollywood?
Aspects of U.S. Culture Hollywood
Movies Promote around the World:
Democracy and Freedom


Hollywoodland sign erected in 1923
-The "American Dream"

- Importance of hard work

- Over coming your circumstances
In 1949 the sign was repaired and
LAND taken off
Nestor Studios
First movie studio in the Hollywood area.
Founded by Al Christie in 1911.
In 1911, fifteen
other independent
studios settle in
Hollywood is being criticized.
Changing world culture
Americanizations of global
values and beliefs
Hollywood's global success is based on the association of the American lifestyle
Seen as attractive to people around the world
U.S. has an advantage in producing entertainment and exporting it to the rest of the world.

However, governments often engage in cultural protectionism.
a systematic effort to prevent local film industries from being swamped by U.S. imports.
Trade barriers, subsidies, and quotas

American studios produce 2/3+ of the all films watched internationally.
Large audience = more potential for influence.
Positive effects of
Hollywood movies:
Acceptance to be uniquely who you are
Despite efforts by the governments, the European film industry is 1/9 the size it was in 1945.
Foreign films all together hold less than 1% of the U.S. market
First American film studio exported
Promotions of Freedoms:
In 1912, the American film companies were largely immersed in competition for the domestic market.
American companies sought to limit competition from French, Italian, and other imported films.
However, it was expected that a great deal of money was to be made in exporting films.
Vitagraph Stud was the first American company to open its own distribution offices in Europe, establishing a branch in London in 1906, and a second ranch in Pars shortly after
By 1911, approximately 60% to 70% of films imported into Great Britain were American. The United States was also doing well in Germany, Australia, and New Zealand too.
Human Rights
More recently:
Globalization has started to intensify
The United States government has actively promoted free trade
Including trade on cultural products
Which has led to Hollywood becoming a world-wide cultural source
And most importantly,

Over 70% of all revenues
from Hollywood movies
come from abroad.
Hollywood's top movies have one quality in common. They avoid reality and for viewers this means escape.
People are attracted to movies from the U.S. because they are high budget, high tech, and high action.
Such movies are not produced in creative/artsy foreign film studios.
So what is the real appeal of films or popular U.S. culture?

One French woman explained it simply but philosophically; “these movies portray a vision of America,” even if flawed and stereotypical but still a view that fits comfortably into a mindset.

American movies are popular in France and elsewhere because they are governed by the sovereignty of the free market, the unvarnished appeal to what people want, seek, and are looking for, even if the reality movies show is flawed.
-Americanization of global values
and beliefs.
-Cultural Imperialism.
-Insensitivity to other cultures.

-Hollywood movies are becoming
"less American"
So, what do other
cultures and
countries think
of America?
What factors determine the high demand for Hollywood films?
Why are they so popular in Europe ?
The Low Demand For Foreign Films
How can foreign film makers increase demand?
The studios are careful to seed films with actors, locations and, occasionally, languages that are well-known in target countries"
'less American'
German-Swiss director
Actors from Ukraine, France, and United Kingdom, Spain
Filmed in Austria, Chile, Italy, Panama and the United Kingdom
80 - 90 % of box office revenues in Continental Europe
The largest single home market for cinema in dollar terms (although total attendance is higher in India)
Equal Submission prices
Europeans prefer to see American Movies
Hollywood and Global Culture
Highly Cosmopolitan
Most of major studios are foreign owned
"that which can be globally sold"
We are trading "strands" of our culture
Movies should be considered a regular good
70% of the studios' annual revenue from box office now comes from international markets
Foreign films hold less than 1% of the U.S market
Hollywood is the US largest net export
Pro & Cons
Protectionism: Government actions and policies that restrict/restrain international trade, done with hopes of protecting companies.
Preserve local companies
Protect domestic jobs
Slower economic growth
Higher prices, less selection
Global tensions
A Temporary Escape
Not Everyday Experience
The Chance to Fantasize
High Budget and Effects
A home-grown industry?
Hollywood is not as american as it once was
Global Actors/Directors in "American Films"
Gerard Butler: Scotland
Natalie Portman: Israel
Heath Ledger: Australia
Mila Kunis: Russia
Orlando Bloom: England
Passion of the Christ
1/4 of american films directed by non american
Comparative Advantage:
Countries should specialize in producing what they are best at
• Partial result of the dollar's weakness
• Total box office spending has doubled overseas
• Cinema boom in emerging countries
• Global marketing itnernationally
• Overseas premiers of films

Why are foreign films so little demanded?
•Consumer tastes and substitutes.
• Differences in taste. Perhaps
• Countries have developed different styles of movies
• There is no way to objectively account for tastes.

• Increase production budgets and effects
• State financial subsidies for domestic film production
• Global phenomenon
• Reflect a unique view
• Focus on their strengths

So is Hollywood really having an influence on global culture?
Can watching foreign films be an effective way of learning how to do business abroad?
Full transcript