Films have been associated with `Hollywood' for nearly a century and the famous studio names continue to dominate the UK film market, despite the enormous changes that have taken place in distribution methods, from the development of multiplexes to the invention of DVD (Digital Versatile Disc) and the Internet. In any given year, more than three-quarters of the most popular films shown at the cinema, or rented or purchased on DVD/video, are distributed and at least partly funded by the `big six' studio groups. In 2006, Walt Disney bought Pixar, a leader in computer-generated animation, and Paramount bought Steven Spielberg's DreamWorks SKG — both deals reaffirming the power of the Hollywood studios and the corporate giants that back them.

Hollywood's `golden age' ended in the 1950s, and the studios initially struggled to cope with competition from television, but subsequent new technologies have generally benefited the film industry. Videotape and its successor, DVD, opened up a market for watching films on demand at home, and the early 2000s brought an explosion in the `sell-through' market (i.e. purchases of DVDs and videos to keep).

Domestic film-making is dwarfed by the output of Hollywood, but more than 6,000 UK companies are involved in some way in the film industry. UK film-making is increasingly geared towards international co-productions.

The total value of the UK cinema, rental and sell-through `windows' of release increased from £2.53bn in 2001 to £3.49bn in 2005. In addition, the film industry obtains significant revenues from broadcasting. More than 8,250 films are broadcast on UK television each year, and many of these are repeated multiple times on the dedicated subscription-based film channels. (Sky alone offers a dozen different Sky Movies and Sky Cinema channels.)

The future seems likely to be dominated by changes in the technology of delivery, rather than changes in the industry's structure. New technology has allowed people to shop online for DVDs or videos and also to rent DVDs for delivery by post. Lovefilm, a pioneer in the online rental market, has recently started to offer film downloads, taking it into the sell-through market. Technology has also had a major impact on film production, particularly through the use of computer-generated imagery (CGI) in effects-packed epics such as the Lord of the Rings series and animated films such as Shrek.

However, the film industry remains essentially a conservative business, with many of the same characteristics it displayed in Hollywood's golden age: famous studios, run by high-powered executives; glamorous film stars; and an output of glossy entertainment that appeals to a mass audience and reinforces widely-held values and beliefs. Thus, Hollywood seems set to retain its position as the dominant global producer of filmed entertainment.

Films have been associated with `Hollywood' for nearly a century and the famous studio names continue to dominate the UK film market, despite the enormous changes that have taken place in distribution methods, from the development of multiplexes to the invention of DVD (Digital Versatile Disc) and the Internet. In any given year, more than three-quarters of the most popular films shown at the cinema, or rented or purchased on DVD/video, are distributed and at least partly funded by the `big six' studio groups. In 2006, Walt Disney bought Pixar, a leader in computer-generated animation, and Paramount bought Steven Spielberg's DreamWorks SKG — both deals reaffirming the power of the Hollywood studios and the corporate giants that back them.

Hollywood's `golden age' ended in the 1950s, and the studios initially struggled to cope with competition from television, but subsequent new technologies have generally benefited the film industry. Videotape and its successor, DVD, opened up a market for watching films on demand at home, and the early 2000s brought an explosion in the `sell-through' market (i.e. purchases of DVDs and videos to keep).

Domestic film-making is dwarfed by the output of Hollywood, but more than 6,000 UK companies are involved in some way in the film industry. UK film-making is increasingly geared towards international co-productions.

The total value of the UK cinema, rental and sell-through `windows' of release increased from £2.53bn in 2001 to £3.49bn in 2005. In addition, the film industry obtains significant revenues from broadcasting. More than 8,250 films are broadcast on UK television each year, and many of these are repeated multiple times on the dedicated subscription-based film channels. (Sky alone offers a dozen different Sky Movies and Sky Cinema channels.)

The future seems likely to be dominated by changes in the technology of delivery, rather than changes in the industry's structure. New technology has allowed people to shop online for DVDs or videos and also to rent DVDs for delivery by post. Lovefilm, a pioneer in the online rental market, has recently started to offer film downloads, taking it into the sell-through market. Technology has also had a major impact on film production, particularly through the use of computer-generated imagery (CGI) in effects-packed epics such as the Lord of the Rings series and animated films such as Shrek.

However, the film industry remains essentially a conservative business, with many of the same characteristics it displayed in Hollywood's golden age: famous studios, run by high-powered executives; glamorous film stars; and an output of glossy entertainment that appeals to a mass audience and reinforces widely-held values and beliefs. Thus, Hollywood seems set to retain its position as the dominant global producer of filmed entertainment.