'A Major Presence in all of the World's Important Markets'

During the 1980s, the worldwide demand for films increased at an unprecedented rate, the result of such factors as economic growth in Western Europe, the Pacific Rim, and Latin America, the end of the Cold War, the commercialization of state broadcasting systems, and the development of new distribution technologies. To capitalize on these conditions, Hollywood entered the age of 'globalization'. As described by Time Warner, globalization dictated that the top players in the business develop long-term strategies to build on a strong base of operations at home while achieving 'a major presence in all of the world's important markets'. ¹ In practice, this meant that companies upgraded international operations to a privileged position by expanding 'horizontally' to tap emerging markets worldwide, by expanding 'vertically' to form alliances with independent producers to enlarge their rosters, and by 'partnering' with foreign investors to secure new sources of financing. Achieving these goals led to a merger movement in Hollywood that has yet to run its course.