Entertainment Marketing

Types of Entertainment Businesses

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Chapter Objectives

Define entertainment marketing.

Identify different types of entertainment media.

Explain the economics of entertainment marketing.

Discuss the global impact of entertainment marketing.

Explain types of businesses in the entertainment industry.

Identify forms of entertainment marketed to consumers.

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That’s Entertainment

Throughout history and around the world, people

have enjoyed music, sport, spectacle, art, and other

forms of diversion.

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That’s Entertainment

Television is one means

used for entertainment

marketing.

entertainment

marketing the process

of developing,

promoting, and

distributing products, or

goods and services, to

satisfy customers’ needs

and wants through

entertainment, or any

diversion, amusement,

or method of occupying

time

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Other forms of

entertainment include:

Radio

Recorded music

Newspapers and magazines

Video games (home or arcade)

Films (theatrical or home)

That’s Entertainment

The companies that control

the media influence how

the public is entertained.

media the methods

used for communicating

or transmitting

messages

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The Influence of

Entertainment

The clothing we wear,

hairstyles, and style in

general are influenced by

entertainment marketing.

fad a short-term

popular trend, style,

product, or service

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Many products or services

influenced by

entertainment are fads.

Entertainment and the

Marketing Concept

Movie and TV studios are constantly striving to

anticipate customer wants and needs and provide

what the public wants.

Entertainment usually has a short ―shelf life.‖

The marketer must cover costs and make a profit

immediately.

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The Economics of

Entertainment

Entertainment marketing relies on meeting

consumer demand for diversion and excitement at

a price the customer is willing to pay.

Shoppers can afford to buy only a limited amount of

product before exceeding their budgets.

The entertainment and sports businesses thrive on

getting people to spend their discretionary income.

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The Economics of

Entertainment

Merchandising is a big part

of the entertainment

industry.

cross-selling the

method of selling the

customer additional

related products tied to

one name

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Businesses use

cross-selling to increase

profits

International

Entertainment

Around the world, people

spend money as

Americans do when it

comes to leisure time.

leisure time time free

from work or duties

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Entertainment products are

one of America’s strongest

exports.

What does the term media mean?

What are fads?

What product is one of America’s strongest

exports?

1.

2.

3.

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Business Structures

Most businesses that produce entertainment for

consumers are large corporations with many

investors and employees.

Most of these businesses started out as single

proprietorships or partnerships.

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Business Structures

The major entertainment companies are:

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The Walt Disney Company

Sony Entertainment

Viacom (Paramount)

Time Warner

Vivendi Universal

The News Corporation (20th Century Fox)

These companies are structured using vertical

distribution.

Movies

Films are released by

distributors—usually the

studio or a related

company—and shown by

theaters, or exhibitors, to

the public.

break even costs and

expenses equal to

income revenues

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Four out of ten films

produced may not break

even.

Movies

A few large studios make

up the core of the film

business, which is

considered an oligopoly.

oligopoly business

situation in which a few

firms affect but do not

control an industry

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Independent movie

companies called indies

operate on their own to

make films.

Movies

In 2000, the breakdown of revenues for film was:

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26 Percent

Theatrical Receipts

28 Percent

Television Sales

46 Percent

Video/DVD

Sales and

Rentals

Theme Parks

The first theme parks were called ―pleasure

gardens‖ and appeared in Europe around 1550.

Walt Disney planned Disneyland to have

exhibits and attractions for all ages.

Disney signed sponsors to help pay for

Disneyland.

The idea for water parks developed in the

late 1980s.

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Television

Television is the number

one entertainment medium

for many Americans.

affiliate an independent

broadcaster that

contracts with larger

national networks for

programming

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The producers of shows are

not necessarily distributors.

An independent TV station

may decide to become an

affiliate.

Television

Ratings are a type of

market research that

determines if a program

stays on the television

schedule or is dropped.

ratings the ranking of

TV-show or radio-show

popularity in a certain

time period

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The most famous ratings

company is Nielsen Media

Research.

Television

Advertising time can be

split between national ads

and local ads.

niche marketing a type

of marketing that

focuses on a small

target market of

consumers who have

very similar interests

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Prime time is the most

expensive advertising time.

Niche marketing has

expanded in television

marketing with the number

of cable stations.

Radio

Radio stations function as television stations

do—as either independent stations or part of

national networks.

Radio stations rely on market research to

determine the popularity of programming.

Each category of programming has a specific

target market.

For radio, prime time is the morning-drive-to-

work period of time.

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Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.

Log On, Tune In

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Many traditional radio stations, including syndicated station NPR (National

Public Radio), also broadcast via the Internet. It take a large amount of

bandwidth to support this kind of continuous, or streaming, media—and

bandwidth can be expensive. Some companies offer their powerful

Internet servers for a fee so you can operate your own station—and

broadcast your message to listeners anywhere in the world.

For more information on sports and entertainment marketing,

go to marketingseries.glencoe.com.

Unlike traditional radio stations, online radio

stations offer audio as well as text, graphics,

and interactive features such as chat rooms.

Music Industry

The music industry is dependent on record companies to sign artists and produce and release CDs.

Record companies make large profits from successful artists who rely on up-front payments and royalties.

The music industry has lost money as a result of illegal file sharing and downloading music for free on the Internet.

Live performances generate income for the music industry.

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Performing Arts

Performance art is a very centralized

business today.

Many productions are financed and produced

by the same large entertainment companies

that produce film and television.

Many popular Broadway shows tour around

the country.

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The Internet and

Computers

Shopping on the Internet

has not replaced the brick-

and-mortar store.

brick-and-mortar store

a retail business with a

physical location or store

site

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The growth of the video

and computer game

industry has been steady

and expansive.

Other Entertainment

Businesses

Other entertainment

businesses include:

nonprofit organization

non-government

organization that

focuses on providing a

service rather than a

profit

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The circus

Themed restaurants

Opera and ballet

– nonprofit organizations

Variety of Markets

With so many forms of entertainment, marketing

professionals have unlimited products to offer to

almost any target market.

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Types of Entertainment Businesses

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Movies

Theme

Parks

Television

Radio

Music

Industry

Performing

Arts

The Internet

Seek Out Target Markets

Print

What is an indie movie company?

What is prime time for television?

What are royalties?

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2.

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3.