Feathers and Fiscality: An Introduction to the Business of Filmmaking to Commerce Students

Ottawa, November 11, 2024 – With glitz, controversy, and glamour, the film industry is essential to the modern person's artistic development. We use films to form opinions, drive change, evoke emotions, and gain perspective. They can be used as tools for propaganda, resistance, and creative revolutions, extending beyond the screen and persistently divulging narratives as daring as the sentiments of their producers. Yet, the allure of films goes beyond artistic expression; it includes the intricate business activities necessary to bring them to life. Each feature film is more than a means of communication. It is also a data-driven, financially intensive enterprise for large companies. Indeed, the financial, strategic, and logistical planning and execution involved in filmmaking manifest themselves in diverse business models worth exploring.

As an ever-evolving and competitive industry, large entertainment companies seek top talent to boost their competitive edge and revitalize their business models. Studios such as Sony Pictures Entertainment, Paramount Studios, Warner Bros., and the National Film Board of Canada uniquely offer art-inclined commerce students the opportunity to apply their skills to filmmaking, storytelling, and visual artistry. As such, students can look to sustain artistic projects and rekindle their love for movies and fictional universes. Concurrently, they will be challenged by these studios to revitalize an industry that greatly suffered during COVID-19 and whose general business model abruptly changed with the rise of streaming services and social media.

Different Names, Similar Business Needs, and Familiar Roles

Many movie industry roles reflect the core business components taught in business schools. Accounting, project management, financial planning and analysis, administration, and marketing are as essential to filmmaking as they are to consulting or auditing firms. Like most large companies, movie giants follow business trends familiar to those found in the case studies assigned in business classes. Recently, in tandem with most companies across industries, they have increasingly relied on patterns in big data to inform their strategies, creating an industry-wide need for talent in information and data management. Studios also require impeccable human resource practices to source creative and administrative talent to produce competitive media. Below are typical management roles used at the production level of filmmaking that Human Resources departments staff.

Image: A breakdown of roles available in a traditional film company.

While roles such as production accountant or digital marketer sound business-related, titles such as line producer may sound foreign. Still, production roles are often managerial positions. For example, a line producer hires the crew, allocates money, supervises the budget, and keeps the production's activities on track for timely completion, all of which combine into a type of managerial practice. Likewise, a first assistant director hires a crew and works with various department heads, such as those in lighting, accounting, and wardrobe, to align schedules and communicate filming expectations. These jobs, which may bear unfamiliar names to business students, still require transferable managerial skills that are familiar to them, thus making them reasonable career options. Industry-specific jobs are only the tip of the iceberg. Like virtually all business entities, film companies also require account managers, marketing strategists, information managers, travel analysts, research and development professionals, and sales and administration associates at the corporate level.

A Complex, Ever-Changing, and Challenging Sector

The movie industry is continuously evolving. A couple of decades ago, film executives were scrambling to protect profit margins with the advent of movie rental companies. Fast forward to today, and gone are the days when people rented movies rather than streaming them from the comfort of their homes. In an interview with First We Feast, renowned actor Matt Damon stated, "The DVD was a huge part of our business, of our revenue stream, and technology has just made that obsolete." He went on to explain how the loss of the subsequent income stream from DVD sales significantly increased the risk involved in moviemaking, thereby changing the types of movies studios are willing to invest in. Author and creative strategist Dina Zipin reinforces this by saying, "There's no sure path for a film to turn a profit since factors like brand awareness, P&A budgets, and the desires of a fickle public come into play."

What's more, the industry has yet to attain the level of success it enjoyed before the COVID-19 pandemic. While box office revenue in Canada rose from $235 million in 2020 to $599.9 million in 2023, it is still almost half of the $1.02 billion recorded in 2019. These complicating factors demonstrate the complexity and unpredictability of the filmmaking business, as well as its deep value in society. However complicated the industry may be, there remains a strong desire throughout the corporate ladder to regain its previous success. Therefore, the industry in its current state provides an opportunity to tackle incredible challenges with promising rewards, making it an avenue worth exploring for commerce students.

The film industry represents a unique intersection of artistic expression and complex business operations, offering a dynamic career path for commerce students with a passion for storytelling. As major studios adapt to changing consumer behaviours and technologies, there is a continuous need for talented individuals to help navigate these changes.

References

Cineplex. "Box Office Revenue in Canada from 2010 to 2023 (in Million Canadian Dollars)." Statista, Statista Inc., 7 Feb. 2024, https://www-statista-com.proxy.bib.uottawa.ca/statistics/501797/canada-box-office-revenue/.

"DVD Collapse: How Is It Transforming the Movie Business?" Los Angeles Times, 18 May 2009, www.latimes.com/archives/blogs/the-big-picture/story/2009-05-18/dvd-collapse-how-is-it-transforming-the-movie-business.

Evans, Sean. "Matt Damon Sweats From His Scalp While Eating Spicy Wings | Hot Ones." YouTube, First We Feast, 2021. Accessed Nov. 2024.

"Film Careers: The Complete List." Careers in Film, 23 Aug. 2022, www.careersinfilm.com/film-careers-list/.

Motion Picture (Movie, Film), Music Production, Distribution, Exhibition (Theaters) & Publishing Industry (U.S.) Financial Analysis, Market Size & Benchmarks, Revenue Forecasts to 2031. P&L, KPIs, EBITDA, NAIC 512000. Plunkett Research, Ltd., 2024. ProQuest, https://login.proxy.bib.uottawa.ca/login?url=https://www.proquest.com/reports/motion-picture-movie-film-music-production/docview/3117116466/se-2.

ScreenSkills. "Assistant Director in the Film and TV Drama Industries." www.screenskills.com/job-profiles/browse/film-and-tv-drama/production-management/assistant-director/. Accessed 10 Nov. 2024.

ScreenSkills. "Line Producer in the Film and TV Drama Industries." www.screenskills.com/job-profiles/browse/film-and-tv-drama/production-management/line-producer-film-and-tv-drama/. Accessed 10 Nov. 2024.

Zipin, Dina. "How Exactly Do Movies Make Money?" Investopedia. www.investopedia.com/articles/investing/093015/how-exactly-do-movies-make-money.asp. Accessed 10 Nov. 2024.