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>> I believe a filmmaker is an entrepreneur.
Any; I define entrepreneurship as anybody who dreams up something and makes it happen.
By its nature each movie is an entrepreneurial project.
It's a group of people getting together to make a movie.
So each, each movie is really a separate company in a way.
So when you look at somebody that says hey, we're gonna go make this movie, you know,
and whether it's the early budget movies, and the Blair Witch Project, you know,
or some of the Rodriguez stuff, and everything, they're clearly entrepreneur's then.
And, and the nature of the movie business, you know, it's a hit or miss business.
It's not unlike music or novels, they have that same attribute, but none of those take
as much money as a big movie does.
And so when you go out and spend even $20,000, which would be cheap,
you know, let alone 3 or 400 million.
And you really, you really do not know how it's gonna turn out.
There has never been a movie made where they knew how it was gonna do.
>> The movies are light and shadow.
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>> Since the film industry began there really have been three pieces of it.
There's production, which means making movies, and the director, and the producer,
and getting the cast, and finding a place to shoot it, and all that jazz.
So that's what we think of the movie business.
And then there's a thing called exhibition, and that means movie theaters.
And then in between the part that most people don't really know about,
which takes in something like half of all the money that flows
through the whole movie industry is what they call distribution.
And that's, that's really the main thing that a Warner Brothers, or a Paramount does is they,
okay, they line up with the production people.
And that may be an independent group say we're gonna go make this movie.
As soon as that movie's done when they get a, a print, you know, a negative,
then the distribution company says, okay, now how many copies,
how many prints are we gonna make of it?
Where we gonna put it?
And do we advertise it.
How much do we spend on advertising?
So really distribution is, is really kind of the guts of the system, and kind of in a lot
of ways the least visible to, to you and me, the average person.
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>> Most of the big studios are owned by big companies, but the making of movies,
the production is more independence than ever, and freelancers, and putting deals together.
Different group of people for each movie.
And the business lends itself to that, really a project based business.
And, and now, then, you know, really what came along was DVD.
DVD and globalization.
Today a lot of movies make over half their money outside the US.
Well that wasn't the case in the old days.
And then the fact that they make a lot more money on DVD's
than they ever make in some of the movie theaters.
And showing it in movie theaters really a way to advertise
for the DVD's when you come down to it.
>> The modern motion picture brings you romance, education, entertainment.
>> Everything in any kind of media: books, newspapers, magazines, movies, music,
it's all gonna get turned on its head.
And anytime an industry goes through that kind of cataclysmic change a bunch
of the companies are just not gonna figure it out, they're gonna die.
And a couple of companies are gonna figure it out and go stronger than ever,
like Universal when they saw television come.
Took their studios and used them to make TV shows and was real aggressive about it,
and created a huge television production operation.
So the coming of digital everything, which touches every, touches production,
it touches distribution, and it touches exhibition.
How do you watch something?
You watch it on your iPod or whatever, you know.
>> It takes science, a lot of American know-how, experimenting with the mysteries of electronics,
continual research, and all of the varied products of a gigantic factory that is America.
>> Ultimately power will remain with creative people.
>> I believe the movie industry has a great future.
But what form they'll be delivered to people in?
They'll probably be high def, high speed downloads.
And it's Netflix or whatever it is.
But as long as they get paid, as long as the artists get paid and everything,
they're gonna keep cranking movies and making, making cool ones, at least once in a while.
>> Lets go to the movies.
The greatest medium for entertainment the world has ever known.
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