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In the Hollywood film industry, why have these giants been able to remain dominant for so many years?

Even though MGM can't produce more than two good movies a year and is constantly being outdone by a bunch of upstarts, the media still considers it a giant, while those upstarts are just film companies.

One very important reason is the MPAA, also known as the Motion Picture Association of America.

Everyone knows about the seven major Hollywood studios, but in the eyes of the older generation of Hollywood people, there are only six.

MGM, Disney, Warner Bros., Paramount, Universal, and Sony Columbia—Twentieth Century Fox had absolutely nothing to do with it.

The reason is also the MPAA; 20th Century Fox wasn't even on it.

What does the MPAA do? It's practically the kingpin of Hollywood, with an absurdly wide range of business operations.

For example, in copyright protection and anti-piracy, the MPAA represents the industry in combating piracy, prosecuting individuals or platforms that illegally download or distribute movies through legal means, and promoting international cooperation in copyright protection, making it a veritable copyright police force.

There is also policy lobbying and industry advocacy, lobbying the government and Congress to fight for policies favorable to the film industry, such as tax breaks and access to overseas markets. They also coordinate relationships among stakeholders such as producers, distributors, and theaters, and promote industry standardization.

Another aspect is international affairs. The MPAA has offices in many countries and regions around the world to promote American film culture and coordinate international market rating, censorship and copyright issues.

Of course, the most important thing is the classification system.

Hollywood movies are classified into five ratings: G, PG, PG13, R, and NC-17.

Grade G is harmless and age-friendly.

The PG rating suggests parental accompaniment, which is a bit of a gray area.

Parents should supervise children who are PG13 or higher, as it contains some violent or sexually suggestive content that is not suitable for children.

R-rated films are even more stimulating; viewers under 17 must be accompanied by an adult to watch them. These films contain adult content, including a large amount of violence, profanity, and nudity.

There is no issue with accompanying persons for NC-17 level; it is purely for adults only.

Don't underestimate this rating system; a difference of just one tier can cause a box office drop that's worse than a stock market crash.

PG ratings are somewhat better; parents might turn a blind eye. But PG13 ratings are different. Most parents won't take their children to watch them, resulting in a huge number of lost potential customers.

The problem is that this boundary is so vague, just like my girlfriend said, it's all arbitrary and there's no definite answer.

Why are the Big Six so secure? Because they firmly control the MPAA, so Hollywood can only become their content production factory.

New film company looking to emerge? No problem, just focus on creating content and don't get involved in distribution. We can still be good brothers.

If you try to challenge the giants' position, the Big Six will immediately band together to resist and use their tiered system to subdue you.

The most famous example is DreamWorks. Even a company as powerful as Spielberg can't escape being taught a lesson by the combined efforts of these giants, and in the end, it can only obediently work for them.

However, Drew wasn't worried about that when she started her company; she had no intention of challenging the rules. What gave her a headache was the profit-sharing system of Hollywood giants.

In Hollywood, the saying "No investor takes a penny" has become an industry mantra.

The six companies that control marketing and distribution use methods even more ruthless than black market shops, and they'll rip you off without hesitation.

How about Harry Potter? As one of the world's most successful IPs, it's always been a money-losing business, can you believe it?

Movie profit sharing seems like a great idea at first glance. Actors can get money when the movie is released, and they can also get a share of the copyright fees every year. You can make money every year after making a movie.

The same applies to film companies. You entrust the distribution and promotion to the Big Six studios, and I only take a small portion of the distribution fees. Isn't that reasonable?

But this profit-sharing system is full of pitfalls. If the six major film companies wanted to, they could find a million ways to make a blockbuster movie's accounts look like it's losing money, and in the end, the production company would have to pay them back. Can you believe it?

Take Harry Potter and the Order of the Phoenix for example. With a production cost of $1.5 million, it grossed a staggering $9.3 million at the global box office, not even including various copyright fees and merchandise.

Anyone with a normal understanding of addition and subtraction within ten could see that this film made a fortune, but in the end, it was reflected in the company's accounts as a loss, with a net loss of $1.67 million.

It can only be said that those highly paid accountants in major companies are truly worth the money; they have brought the art of bookkeeping to its extreme.

For example, spending huge sums on publicity and marketing, and the publicity and marketing company is actually their own subsidiary, which means they have set an exorbitant price for themselves.

Another issue is the exorbitant interest rates. It's normal to borrow money when you're short on funds for marketing and promotion, right? Even though the company that borrows the money is the parent company, it doesn't stop you from paying tens of millions of dollars in exorbitant interest.

And then there are all sorts of expenses for actors' promotional tours. Renting a private jet for several million dollars isn't unreasonable, is it? The six major corporations own their own private jets? Just tell me, did you even ride one?

Some are even more ruthless, directly targeting movie fans. Giving them gifts isn't too much to ask, right? If they're really shameless, a single plush toy could cost thousands of dollars. It's practically robbery.

To receive profit sharing, you first need to make a profit. Without certain connections and relationships, getting a single penny from Hollywood is harder than climbing to heaven.

Drew has some connections, but her company is not something the Big Six would dare to dread, which is why she approached Ernst.

Earning less is fine, but you can't go to extremes. Once the company has built a reputation, the giants will see your capabilities and that you can bring them a continuous stream of profits, so that everyone can benefit.

A house in Santa Monica, this is Drew's house.

Her voice was hoarse as she lay sprawled on her bed like a lump of mud. "You're still so wild and reckless."

Ernst, on the other hand, looked completely satisfied. Standing on the ground, his muscles were clearly defined under the light, making him look like a walking hormone emitter.

What he's most satisfied with about this identity is his strong physique and the assets that every man cares about.

"Would you like a drink?" Ernst was a little thirsty, having lost a lot of water earlier.

"I remember you had a bottle of your treasured wine; I wonder if you've finished it."

"FXXK, you're a scoundrel, you haven't changed at all."

"No," Ernst shook his head, looking at the small leather whip on the ground. "At least I was much gentler, wasn't I?"

He turned and left the master bedroom, finding the 1961 Petrus in the wine cabinet.

Everyone knows about the 82 Lafite. This bottle is more than six times the price of the original 82 Lafite, worth seventy to eighty thousand US dollars.

Ernst didn't feel there was anything wrong with it at all; he simply opened the glass of wine, took it, and went into the bedroom.

When Drew saw that he had actually opened the bottle of red wine that she had been reluctant to drink, she immediately turned into a shrew, yelling, "You're a complete bastard, a scumbag..."

The other party cursed for a full three minutes, and Ernst downed the red wine in his glass in one gulp, revealing a malicious smile.

"It seems you haven't figured out your current situation yet."

"What are you trying to do?" Drew's expression changed drastically, and the symphony in the room started playing again.