Chapter 8 Entertainment Industry. Chapter Overview Lesson 8.1 Entertainment Profits Lesson 8.2...
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Transcript of Chapter 8 Entertainment Industry. Chapter Overview Lesson 8.1 Entertainment Profits Lesson 8.2...
Chapter 8
Entertainment Industry
Chapter Overview
Lesson 8.1 Entertainment ProfitsLesson 8.2 Distribution of EntertainmentLesson 8.3 Marketing Music and TheaterLesson 8.4 Awards and Annual EventsLesson 8.5 Entertainment Marketing Careers
Lesson 8.1
Entertainment Profits
The Profit MakersOnly 2 of 7 major Hollywood studios turned profits in 1998, despite record audiences.Paramount Pictures (Viacom, Inc.) and 20th Century Fox Film Corporation were successful thanks to Titanic ($1.8B tickets)Others suffered b/c of high cost of the production and distribution
Cost Cutting StrategiesCut the # of Wide Release Movies Released in more than
2,000 theaters at 1 time
Low budget movies capitalize on the promotional budget of major movies by using similar themes in the title
Profit and OpportunityProfit depends largely on the popularity of the film overseas
Generating film revenue: Ratio of tickets sold
to the cost of production process
Income from:Merchandising SoundtracksRelationships to
theme parksGlobal releasesTicket sales in the
U.S. and abroad
Cultural Profit Opportunities
Worldwide distribution revenue is critical
Fox sold nearly $2 B in movie ticket sales outside the U.S. 1998
International release can increase receipts by 50 to 100%
Most films generate less than 25% of their final income from domestic ticket sales alone
The 1.3 B people in China is a promising new potential audience
Fast MoneyThe difference between entertainment and sports is determined by the viewer.Stock Car racing is one of the fastest growing forms of entertainment.Created a mutual fund to secure financing
for their expensive form of entertainment Investment stocks from 50 sponsor
companies are included Individual drivers have 1 sponsor who pays
for the car and the upkeep.
Lesson 8.2
Distribution of Entertainment
Ways to DistributeTraditional T.V. networks
Cable
Satellite
Internet
Cable Mania# of cable channels has increased
Programs are picked up by a master antenna and delivered to homes throughout the country
1 time cost to install
Monthly fee
New cable channels target specific demographic markets
80% of American homes had cable hook-up
Satellite TelevisionAllows rural areas to receive stations
Must buy a dish ($130)
Subscribe to monthly service
Offering more than 200 channels
40 M homes by 2007
Internet EntertainmentWeb based companies that markets sports info, interactive games, tournaments, chat rooms and sports-related merchandise onlineE-commerce: selling merchandise on the InternetInternet is becoming most valuable place to advertise
Movie MarketingTrailers or previews – advertisements for other moviesWell-coordinated promotional plan can wring out the last drop of consumer interestPay-per-view ads can also increase video rentals.Use suggestive selling
Effective Examples
Blair Witch ProjectDeveloped web
page that made it look like a real news story
Added short, intriguing trailers
Per-screen revenue was over $56,000
The Lion King IIBypassed theater
releaseSold directly o
rental and sales of video ($10 mil.)
See It At HomeVideos sold at mass market retailers Wal-Mart
Stimulate sales in music and video specialty stores through Point-of-Purchase (POP) displaysMovies on DVD may replace videotapes
Lesson 8.3
Marketing Music and Theater
Today’s Top MusicHip-hop sales inc.
Marketing Rap Sampling – inclusion
on a CD of excerpts
Many music label executives use intuition to decide what is marketable
Mainstream Rap Madison Ave in NY is
home Singers and dancers
featured in TV ads. Changing to more
acceptable messages
Promoting TheaterBroadway uses: billboards, radio, upscale theater magazines, and other publicationsWord-of-mouth is major source of promotionFascination with the lights and the people
Rosie O’Donnell is credited with increasing sales
Metropolitan Opera of New York (The Met) Duke University course Gain knowledge and
appreciation for the arts
Distributing MusicConcerts Agent, promoter, and
artists manager “Wildcat” tours cut out
the agent Robert F.X. Sillerman
bought out most regional promoters. Now runs 98% of the concerts
MP3 Mpeg Layer 3 – pirating
of music for free, illegally from the Internet
Free software program Still changing by finding
ways to bypass record company
Lesson 8.4
Awards and Annual Events
The OscarsMost famous and prestigious awardGiven by: Academy of Motion Picture Arts and Sciences5,000 members determine each awardNomination is a promotional bonanza for those involvedNo more than 5 nominations are made for each categoryWinners featured on magazine covers, newspapersWinning an award and getting a nomination have promotional value money cannot buyHave 2nd highest viewership after the Super BowlSunday night on ABC through 2008In 1998 ABC charged $915,000 per ad minute
The GrammysNational Academy of Recording Arts and Sciences (NARS)
92 Categories
Winners selected by vote of the committee members
Brings a lot of attention
Does not guarantee success or sales
New artist categories are sometimes never heard from again Examples????
The Emmys
8K member organization
Academy of Television Arts and SciencesPresents Primetime and
Daytime
Winning shows or stars can increase the viewing audience
The TonysNamed after Antoinette Perry Served as head of the
Board of the American Theatre Wing
Given to professionals in theater for distinguished achievement
Ratings up when Rosie O’Donnell was host
Lesson 8.5
Entertainment Marketing Careers
Getting There From Here
Marketing You You are the major
product Know what you want to
do and what it takes to get the job
Gather info on the job to make a decision
Know what is required
How to Prepare Conduct research Sources of info
Internet People you know Company reports Business directories College placement
offices Recent news articles
Marketing JobsOpportunities for marketers, advertisers, and public relations specialists will be among the fastest growing in the nation through 2006
# of consumers rises – the # of artists, performers, and staged performances will increase
General background in these fields can urn into a focus on entertainment
Marketing Relations Specialist
Build and maintain positive relationships between their employer and the public
Looks out for the best interests of another
Keep the media and consumers aware of the company or person they represent
More opportunities in larger cities
College degree preferred combined with experience (Internship)
Marketing/Advertising MgrsIntense competitionPotential to earn high salariesLong hoursJobs dictated by consumer interest at the time (flexible)Responsibilities Strategic planning, sales,
advertising, pricing, product development
Skill RequirementsMath, communication, interpersonal skills
Ability to communicate persuasively orally and in writing
Ability to work on a team
Creativity
Initiative
Self-confidence
Maturity
Flexibility