Economically, pacts are the smart way to go for studios. By having previous history and an ongoing contract, a history gets developed and also it is less expensive as they are contracted together. This makes it cheaper to develop and create new texts. On the other hand, regulatory conditions probably work against pacts. By having this exclusive group, studios almost seem to be forming unofficial monopolies. It also prevents competition from breaking into the business and therefore a lack of new ideas. This in turn impacts the media texts themselves. By having a select group of people in charge of creating the media, only one form of media gets made. The studios have these pacts with people who know what that particular studio wants and therefore continues the routine cycle of similar texts into the market.
Thursday, October 6, 2011
The Hollywood Pact
In the article Wasko discusses the idea of "pacts" which are ongoing contracts or arrangements between players and studios. Pacts have a huge influence on the media industry. By having major media companies under a pact, there is less chance for other companies to break into the media field. The pacts also allow studios to keep development and output in house, instead of going outside their own companies and people for other points of view. On the other hand pacts also give job security for the producers and other individuals associated with them. This gives more leeway for creative projects that may or may not be financially successful.