STUDIO PRODUCTION
Studios produce the lifeblood of the industry; they create motion picture content. Content drives attendance, and studios are highly concentrated. The top six studios in 2012 created 17 percent of the films for the year, but
these films accounted for 76 percent of the box office gross (see Exhibit 5). The top 10 studios constitute over 90 percent of box office receipts. This concentration, coupled with highly differentiated content, gives the studios considerable negotiating and pricing power.