Film industry has become one of the most universal influential medium in providing entertainment and information to the public, besides contributing significantly to a country’s businesses and economies. Film industries in Asian countries like India through her Bollywood movies, and Korea via her movies and dramas have advantageously gained world wide recognition. This paper thus try to identify the latent factors concerning the film industry in Selangor and Johor, the two states which have the most frequented cinemagoers. Exploratory factor analysis (EFA) was performed in this study besides the aid of literature and reviews. To test the data reliability and sampling adequacy, several tests were conducted which include Kaiser-Meyer-Olkin and Bartlett’s test of Sphericity, Scree plot, total variance explained, and rotated component matrix. Hypotheses were then built based on these factors. Results indicated that eight factors with 22 indicators were formed using the Principal Axis Factoring. Eight hypotheses can thus be constructed as related to these factors and research objective. It was found that certain variables in this research were similar as to other past researches, however, factors on quality of Malay films associated with indicator ‘actors or actresses’, film genre with indicators ‘horror, romance and culture’, and audiences’ perception on indicator ‘film clean image and content’ gave high loadings of more than 0.8. Conclusively, film activators are recommended to consider these underlying determinants so as to improve our films for the local and global entertainment market.