Antitrust in the Motion Picture Industry (1960)

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ANTITRUST IN THE MOTION PICTURE INDUSTRY: Economic and Legal Analysis MICHAEL CONANT There have been more antitrust cases in the motion picture industry than in any other. The field is thus a crucial one for determining whether our antitrust laws, when applied, have real effects in promoting market rivalry closer to the model of free competition. This study in industrial economics and antitrust law succinctly outlines the history of the industry and the peculiarities of the services it provides. The author describes changing marketing methods; tendencies to vertical integration of production, distribution, and exhibition; means of achieving monopoly power; and balances of strength in the different sectors which have characterized the economic development of the industry. He explains its structure and trade practices in detail for the period of the major antitrust cases — 1938-1946-relating the theater-acquisition policies of the major companies, and the beginnings of legal turmoil over such distribution practices as block-booking, discriminatory clearances, and the like. Earlier studies of the motion picture industry and its monopoly problems failed to utilize the economic theory of price discrimination in analyzing the complex geographical and temporal pattern of motion pic i