SIC 7819 Services Allied to Motion Picture Production

Encyclopedia of American Industries | 2005 | Copyright

SIC 7819
SERVICES ALLIED TO MOTION PICTURE PRODUCTION

This category includes establishments primarily engaged in performing services independent of motion picture production, but allied thereto. These include motion picture film processing, editing and titling, casting, wardrobe and studio property rental, motion picture and video tape reproduction, and stock footage film libraries.

NAICS Code(s)

512191 (Teleproduction and Other Post-Production Services)

561310 (Employment Placement Agencies)

532220 (Formal Wear and Costumes Rental)

532490 (Other Commercial and Industrial Machinery and Equipment Rental and Leasing)

541214 (Payroll Services)

711510 (Independent Artists, Writers, and Performers)

334612 (Prerecorded Compact Disc (Except Software), Tape, and Record Manufacturing)

512199 (Other Motion Picture and Video Industries)

Industry Snapshot

This highly fragmented industry covers a range of services and products geared toward the production of motion pictures. Usually, firms engaged in this sector focus mainly or exclusively on a specialized operation and generally contract their services to motion picture producers or distributors. As small, relatively unleveraged firms, these hired guns are often forced to compete with each other on pricing in order to attract major Hollywood studios as well as independent filmmakers, who typically work with a tight budget.

By the late 1990s, major studios, such as Disney and Twentieth Century Fox were investing in large facilities to house equipment for post-production activities such as editing and sound mixing that can be accomplished on site. Some, like Twentieth Century Fox, boast complete ground-up digital integration, bypassing the need for analog sound conversion. Others include wardrobe and scenery stocks and tape reproduction facilities; thus, the firms engaged in services allied to motion picture production were scrambling to maintain their viability in this increasingly consolidated marketplace, often positioning themselves as an attractive purchase for major studios.

The hottest sector of the industry in the late 1990s was the production of special effects and animation. The astounding success and proliferation of films and movies featuring computer-generated special effects led to a rapid expansion and enhancement of these technologies. Film studios were engaged in competition to dazzle audiences with the most amazing visual images. By the end of the 1990s, 16 of the 20 largest all-time box-office hits had sold themselves primarily on special effects.

Organization and Structure

The overall structure of the services allied to motion picture industry is distinguished by a heavy reliance on subcontracting and freelance talent. Firms rarely enjoy movie-gross percentages and remain fixed on jumping from one short-term contract to another. As a result, these companies are usually in a poor...

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