1 / 37

Chapter 8 – Entertainment Industry Lesson 8.1

Chapter 8 – Entertainment Industry Lesson 8.1. Entertainment Marketing . Objectives. Explain financial strategies in the motion picture industry Calculate film revenue, and discuss the importance of foreign markets for movies Describe financing for auto racing.

sylvie
Download Presentation

Chapter 8 – Entertainment Industry Lesson 8.1

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 8 – Entertainment IndustryLesson 8.1 Entertainment Marketing

  2. Objectives • Explain financial strategies in the motion picture industry • Calculate film revenue, and discuss the importance of foreign markets for movies • Describe financing for auto racing. • Essential Question – In what ways do movies make money?

  3. Did you know? • The Global Entertainment Industry is expected to reach $1.4 TRILLION by 2015. • In 2011, the gross box office sales (movies at the theater) was $10.1 BILLION in the United States! • In 2011, the global box offices sales reached $32.6 BILLION! • The entertainment industry is considered the second largest export (after agriculture) in the US! • Entertainment industry has the largest payroll of any business in this country!

  4. Entertainment Profits pg. 194 • The Profit makers • For the last ten years, movie ticket sales have increased in the US • Only 50% of movies actually make a profit! • Studios average cost of film production and marketing is $89.4 million per year! • Selling of DVDs and international box-office sales are sometimes larger sources of income than the actual ticket sales

  5. Is big best? • Titanic was the first movie to earn more than $600 million in North America • International box office sales were over $1.2 billion • Titanic was still being shown in movie theaters three days before the DVD was released! • What are the top 10 highest grossing movies?

  6. Cost cutting strategies • Wide release – is a movie released in more than 2,000 theaters at one time • Preview – is the release of a movie the evening before its official opening. • Usually held between 6-10pm. • Matinees – or pre-evening shows, generally have less audience and lower-priced tickets • Low-budget movies – generally those costing less than $250,000 to produce and have low advertising budgets.

  7. Profit and Opportunity • Profit – the money left after all bills have been paid. • Profit from an American film depends largely on its popularity overseas Generating Film Revenue – -To figure profits, moviemakers look at several elements of the film process: • Ratio of tickets sold:cost of production • Income from licensed merchandise, soundtracks, relationships to theme parks, global releases and domestic/foreign ticket sales • Blair Witch Project – cost $50,000, grossed $36 million during first three weeks!

  8. Cultural Opportunities for Profits • Worldwide distribution revenue is critical for movie profits • Income from an international release of a movie can increase box office take by 50-100% over domestic ticket sales

  9. Cultural Opportunities for Profits (cont’d) • Not always profitable - • Theater owners and movie distributors in India said they would no longer show dubbed versions of English-language films • Want to prevent corruption of Indian taste • 1.3 BILLION people in China = great market for movies, but, unfortunately: • Pirated movies are abundant • Chinese government must approve the content, film location and distribution of films • “Django Unchained” pulled (on wiki)

  10. Fast money • Difference between entertainment and sports is determined by the viewer • Car racing – sport or entertainment? • Racers have the same problem film producers have –

  11. Fast money (cont’d) • Where do race groups get money to finance their form of entertainment? • Mutual fund • Sponsors • Mutual fund – investments from stocks • Sponsors – they pay for the car and upkeep. Can have numerous sponsors, but usually one big one

  12. Chapter 8.2 Distribution of entertainment

  13. Objectives • Understand the different kinds of entertainment distribution • Discuss promotional strategies for motion pictures. • Essential Question – how are movies distributed?

  14. Distribution of Home Entertainment • In the early days it was just… How they made cartoons in the 1930’s

  15. Distribution of Home Entertainment Now we have….

  16. Cable Mania • In the late 1990’s, the number of cable TV networks, esp those with digital channels, increased greatly. • Original cable space was limited, but digital cable allowed more channels • Cable TV programs are sent through the air, picked up by a master antenna and delivered to homes via cables

  17. Cable Mania (cont’d) • Books’ guess 29 million households in US would have an HDTV by 2008 • Actual = 35 million in US in 2008 • Now = 53% of all homes have HDTV • Approximately 125 million homes in the US • Means approx 63 million households have a HDTV • Wow! • MOU – (memorandum of understanding) written agreement that contains voluntary technical standards. Source: Cable & Telecommunications Association for Marketing

  18. Satellite Television • Satellite TV competes with cable • But blows cable out of the water when it comes to rural areas

  19. Internet Entertainment • Ignore the book, lets talk

  20. Mega-Distribution • Broadcast webs – (not the WWW) are groups of TV networks, production studios, and related entertainment firms that produce shows inhouse for their groups. • Vertical integration – one company controls several different areas of the same industry • Example - Disney

  21. Vertical Integration Example Vivendi Universal SA Headquarters – Paris, France USA Interactive (Subsidiary) Universal Pictures HSN.com Universal Theme Parks Ticketmaster.com USA Network Hotel Reservations Network Music & publishing business Expedia.com

  22. Movie Marketing • Trailers – Movies shown in theaters and on video include advertisements for other movies/related music/merchandise Transformers 3 Avatar Paranormal Activity 3 Step Brothers • The Blair Witch Project – developed a web page that made the story look like a real news article. Trailer

  23. See it at home • For a HakimBuck- what does DVD stand for? • Digital video discs • No longer need to travel to first and second run theaters to see films • DVD’s/Blue ray • Point-of-purchase (POP) displays – set up next to the checkout area and are an effective promotional tool • Examples…

  24. POP displays

  25. DVDs – how do we get them? • Walk in stores • Redbox/Blockbuster Express • Netflix • Online Streaming

  26. Extra Credit • In your travels, if you see a POP display, take a picture! Picture can be either on a phone or camera • Show me the picture, tell me where the POP display is and the extra credit is yours!

  27. Homework • You need to survey 15 people, that live in different addresses and see if they have either: cable, satellite, digital air, or none. The people surveyed CAN NOT be from our class!! • Your survey results, and the student’s name you asked, needs to be inputted in either Microsoft Excel or Word in a logical manner I can understand, with your name in it and submitted into the Usershares (I:) folder • In Word/Excel Create a graph or chart of your choice using your survey data • Results will be tallied and your document graded for: • Completion • How well I can understand it • Due: • Three days from today’s class

  28. Marketing Music and Theater Chapter 8.3 Page 205

  29. Objectives • Understand the distribution of music • Discuss the legalities of music distribution • Explain two kinds of theater promotion • Essential Question – What is theater promotion?

  30. Today’s music • Listening to music of your choice is a popular form of entertainment for all ages • The music industry is constantly changing to keep up with new technology • How CDs are made

  31. Digital Music Marketing • Digital music is delivered to TVs through both cable and satellite providers • Listened to by as many as 75% of subscribers, daily • Where do you listen to digital music?

  32. Distributing Music • Concerts – • A major source of revenue for musical artists • Traditionally, fans stood in line to buy tickets – but not anymore • The internet offers a fast and convenient alternative for purchasing tickets • Pre sales- take place at web sites affiliated with the concert artist, such as fan club web sites • Bieber Fever!

  33. Distributing Music • MP3- what’s it stand for? • Mpeg Layer 3 • Tougher for musicians to “sell” their music now because people are downloading it for free • RIAA – (Recording Industry Association of America) uses software to track computer users online to see who is illegally downloading MP3s

  34. Distributing Music • Many musicians are bypassing record companies to market directly to their fans through the Internet. • Benefits • Don’t have to pay high costs • Can release one song at a time instead of a whole CD

  35. Promoting Theater • Word-of-mouth is a major source of promotion for Broadway shows • Still use typical distribution channels (posters, TV ads, and newspaper ads)

  36. Awards influence sales • The Oscars – 6,000 members determine each Academy Award, or Oscar. • They vote on motion pictures, directors, studios and actors • Second highest TV viewership after the Super Bowl • The Grammys – Awards for music artists and music producers

  37. Awards influence sales (cont’d) • The Emmys – awards for television shows • The Tony Awards – awards for theatrical (theater) shows

More Related