This report offers an in-depth analysis of the major economic developments of the film industry. The object of analysis is feature films, encompassing their production as well as distribution through and exhibition across different channels. It reviews the economic characteristics of the film industry, some of which it shares with other media and content industries. The report includes a database of 10 EU and 10 non-EU companies plus two company case studies (Netflix and Universciné). The report is divided into four major parts. Following an introduction (Chapter 1), Chapter 2 introduces the sector and its main economic, cultural, technological and regulatory features. Chapter 3 analyses the value network of the European film industry in a global perspective, identifying specific strengths and weaknesses across different parts of the value network (production, distribution and exhibition). Chapter 4 analyses how the film industry and its value network are being transformed as a result of the ongoing digitalisation process. Chapter 5 concludes the report by confronting the strengths and weaknesses of the European film industry and the opportunities and challenges posed by digitalisation. The study is based on a review and synthesis of the available literature and reports and on official (Eurostat) and unofficial (trade organisations and consultancies) data on the cinema industry.