A number of factors affect the performance of the Film Production industry. These drivers include:
Technological Change – Technology has made a huge difference in the Film Production industry. Better equipment and storage have increased the sophistication of production, and digital technology has cut production and distribution costs.
Demand From Movie Theaters – Film producers try to release movies when people have more time to go see them, such as during the summer or over a holiday.
Per Capita Disposable Income – When people have more money, they are more willing to spend on entertainment, including going to the movies and purchasing DVDs, Blu-rays, and digital copies of films.
Total Advertising Expenditure – Product placement is an important part of financing a film. Therefore, film producers benefit when companies have large advertising budgets.
Trade-Weighted Index –This measures how strong the dollar is compared to other currencies. When the dollar is strong, film production companies tend to make their movies in international locations to save money.