The Phenomenon of Globalization and Hollywood Essay

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Hollywood movies make more than a half of box-office receipts all over the world. This means that Hollywood is not only a pioneer in movie-making industry, but also the leader, who defines the main directions of development for the world movie industry. Private film studios can not stand the competition with Hollywood and the power of Hollywood has become almost total. Some specialists view Hollywood as a constant threat to cultural and economical freedom of national movie-making industry. The popularity of Hollywood can be regarded as a confrontation of national and transnational pop culture.

As states Patty Sotirin in his article Hollywood’s transnational appeal: hegemony and democratic potential? , “ Thus, its popularity cannot be tied down to popular consumption alone but should take into account instability of national, political and cultural identities. The popular appeal of Hollywood’s products across the world invokes a complex history of globalization, nationalism, representation, and popular imagination. ” (Sotirin, 81) Statistics shows that films, which have success in the US market, in most cases have success in the world market also.

Here we meet kind of circle as television and films form the taste of the consumers and since Hollywood has had an opportunity to widespread its movies all over the world people get used to such a kind of entertainment and demand more and more films of certain type. Hollywood industry has unmatched competitive advantages. These advantages are mainly achieved by two key factors. First of all it has a developed home base of movie production. In addition Hollywood has developed distribution network, which is widespread almost all over the world and US movement puts much effort to give all possible support to this widespread.

Globalization contribution to Hollywood is becoming the prominent center of world film industry. The Phenomenon of Hollywood’s Globalization We live in the age of globalization. The growth of interaction between nations and countries and creating of one economical space gives more and more reasons to talk about the growing temps of globalization. Nowadays it is a phenomenon nobody can escape. “Globalization is an interdisciplinary concept used to mark the site of struggles between local and global economies and experiences given the contemporary transnationalization of capital, communication, and culture. (Sotirin, 89)

Globalization influences all parts of our social, cultural and political life. Entertainment industry became one of the first objects influenced by it. Starting from the beginning of the twentieth century United States has become the leader of the motion picture production. People in different countries watch Hollywood movies and find them equally interesting and appealing. Statistics shows that export receipts exceed even receipts, received in the US domestic market. European countries are the main importers of Hollywood films. Hollywood is caught in the process of globalization.

At the same time it influences this process. Government actively supports distributional policies of Hollywood. Washington has always supported Hollywood and federal authorise pressed on the other countries making them accept Hollywood films. Such state policy not only helps to increase Hollywood earnings but also popularises of Hollywood movies. In addition, Hollywood receives immense financial support from US State Department, Commerce Department and other state organizations. With the intensification of globalization, United States started an active promotion of free trade agendas.

Special attention was paid to free trade in cultural products. These policies met fierce resistance from European countries. New Hollywood movies become transnational and people from different countries find same movies interesting and appealing. Large film budgets also contribute to the success of Hollywood movies. In addition, Hollywood producers have so called “franchise” consciousness. These people are able to think about the film production not in terms of separate individuals, but view it as an entire successful brand.

Planning production of a film, Hollywood managers consider television networks, journals and magazines and different commercial products, which will bring profits in the future. Global distribution also reaches attributes to the further success of motion pictures. Hollywood has great opportunity to invest money in new facilities not only in the U. S. but in many countries of the world. Motion pictures break national and regional borders. Hollywood proves that cultural products can appeal to different people from different countries.

Time after time Hollywood proves that it is possible to create movies, which will bring profit and attract audience in the different parts of the world. People are getting closer and Hollywood contributes to this process. Foreign investors invest money into Hollywood movies. This proves that Hollywood way of movie making is recognized all over the world and producers from different countries are ready to invest their money into films, which will become 100% successful. Hollywood is focused on the world market for both, investment and distribution.

Globalization let Hollywood increase receipts for movies more than twice. Many Hollywood movies would not have been produced if their producers had not counted on the international audience. So, Hollywood globalization not only lets increase the amounts of money received for tickets receipts but also give additional opportunities to create new products. Movie makers can now increase the budget of their movies as they can count on great international money receipts. As a result, the audience all over the world can get more spectacular movies.

Other movie-making corporations can hardly constitute a challenge to Hollywood hegemony. Such situation has not only financial consequences. A lot of countries are worried that their cultural identities are under threat by pop culture widespread by Hollywood. Cultural treasures, such as books, movies, etc. can not be estimated only like commercial objects. They have deeper meaning. Culture is a part of national identity, which expresses historical heritage of the nation. That is why it can not be estimated only from economical point of view.

At the present moment a lot of countries are worried that American popular culture threatens their cultural identity. Money, which US receives from cultural export, exceeds hundreds billions dollars per year. The scale of American influence is so big that other countries can not provide and adequate response to it. Unfortunately, very often Hollywood becomes a weapon of Americanization. Globalization has nothing wrong as long as it is understood as the process of getting rid of borders, which separate people. In this case people obtain new cultural values without losing their own identity.

Unfortunately, very often globalization becomes a weapon in the hands of mighty countries, such as America, which helps to promote their own interests all over the world. American goods flooded the worlds and native cultural products can not stand the competition because the U. S. market power is hard to compete. Hollywood gains cultural dominance in the world not because the cultures of others countries are weak, but because the U. S. government, which gives strong support to Hollywood, has more financial and marketing means. Growing temps of Hollywood globalization threatens national cinemas and threaten cultural and political identity.

Widespread of global cinematic culture represented by Hollywood had negative impact on national cinematic culture. An American idea, widely advertised by Hollywood became global phenomenon, which subdued local markets and film industries. Despite Hollywood also became influenced by the globalization and made a turn to multinationalism, it still transmits American cultural, political and economical values to the world. On the background of political and cultural instabilities in many world countries, Hollywood makes a serious threat to cultural identities of these countries.

As states Sotirin, “ In the age of Western “megaculture,” Hollywood’s popularity in a foreign market limits the popular appeal of local film products in economic, cultural, and social terms. ” (Sotirin, 69) Specialists, concerned with the American cultural expansion, insist on the necessity of healthy balance between American popular culture and national cultural values. UNESCO, the United Nations’ committee responsible for cultural questions approved a “Diversity” convention (Nowell-Smith, Ricci). More than 190 countries voted for the Convention, which limits widespread of Hollywood motion pictures and other cultural objects.

They explain their actions by attempts to escape the dominance of Hollywood in the sphere of entertainment. Hollywood movies do not simple damage national movie making companies. They also threaten national identity and culture as all movies, despite they are made in regard to multinational audience, still promote American way of life and way of thinking. “Under Article 6 nations are authorized to take “regulatory measures” aimed at promoting cultural diversity, while under Article 8 they may identify “situations where cultural expressions … re at risk of extinction” and take “all appropriate measures” to preserve them. ” (Segrave, 116)

The government of the United States regarded such a policy not as an attempt to save cultural diversity, but as an attempt to put trade barrier and prevent free flow of goods. Finally, according to negotiations of 1993, European countries left their right to restrictions in motion pictures and TV programs according to their consideration. USA does not leave attempts to achieve liberation and trade liberalization.

Several organizations, such as Motion Picture Association of America (MPAA) and Motion Picture Association (MPA) have been created in order to promote the interests of Hollywood all over the world. These organizations have offices inside and outside the United States. American Film Marketing Association (AFMA) represents the interests of independent movies-makers. This organization is preoccupied in promoting the interests of American motion-movies distributors. All these organizations are concerned with the issues of free trade promotion, piracy, arbitration and marketing.

So, globalization of Hollywood is a result of both, market policy and intensive support of the US government. Cultural products are closely connected with the issues of social identities and consciousness. Conclusion I think that Hollywood globalization is a complex phenomenon which can not be judged unambiguously. Hollywood globalization contributes to the cultural integration of the world. No doubt, that it brings great profit to the United States, the motherland of Hollywood. At the same time other countries may feel pressed by the pressing of Hollywood motion pictures, which proclaim American lifestyle and American values system.

Some counties express concern that Hollywood globalization can bring a threat to national cultural identities. Globalization is profitable for the United States as it got additional opportunities to promote its products all over the world. Specialists predict that Hollywood entertainment products will continue to gain popularity all over the world and the country will save its position as a leader of motion-movies producer. Along with negative impact Hollywood globalization has impact on the economy of other countries, it has also positive influence on movie-making industry of world countries.

Hollywood globalization has provoked some positive shifts in the world movie making industry. There is a rise in cheaper movie making productions in such countries, as Canada, Mexico and others. Such changes do not make any threat to Hollywood, as a world leader producer, but has positive influence on international industry of entertainment. So, the rise of competitor film industries can be attributed to Hollywood globalization. In addition, this competition helps to improve the quality of market performance in entertainment industry for both, international producers and Hollywood movie-makers.

Such situation is challenging for all movie-makers and profitable for all consumers. The rise of media mega corporations in Europe and Japan makes global cultural landscape more complex and diverse. Many movie making companies learn from prominent technologies, applied in Hollywood. So, Hollywood becomes not only the main competitor but also an ideal others learn from. Despite changes in the power division Hollywood stays an unmatched leader of motion pictures production. Its strategies prove to be successful ones and promise even bigger profits in the future.

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