Monopolization of The Blocbuster Film Industry Dicney. Reasons and Consequences

In 2019 films of Disney Company have earned more than 11 billion US dollars worldwide, which became the new absolute record in history of Hollywood. On the American market of film distribution the share of total box office revenues of Disney films is more than a third from all box office revenues of all companies which making it the undeniable leader of the year. Taking into account the acquisition of 21st Century Fox by Disney in 2019, its leadership is only furtherly increasing. Although that 2019 was such a successful year for the company partially because of the lucky combination of circumstances, the trend of Disney’s success could be traced back for several years, and the tight schedule of releases of potential blockbusters of the studio should build on that success. Its main film franchises of the past years Disney was able to create due to the acquisition of several film studios. We propose a hypothesis that M&A in movie industry increases company’s market share on a higher percentage after several years after an acquisition was made than at the moment of acquisition, thus having a delayed positive effect. We use a time series data for the box office revenues in the US and worldwide in 2005-2019 to find out the reasons of such growth and obtained results show that there is a statistical regularity that films produced by Disney in past years have a significantly higher box office revenues compared to films produced by other companies assuming all else being equal, especially in years 2015-2019, which supports the stated hypothesis.