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Distributing Entertainment

Explore the evolution of entertainment distribution, from the traditional network television and cable channels to internet entertainment media and the rise of mega distribution. Learn about the impact of direct and indirect distribution, the control of distribution by major conglomerates, and the role of retailers in distributing home entertainment products.

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Distributing Entertainment

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  1. Distributing Entertainment

  2. Modifying Channels Entertainment Distribution Manufacturer Retailer Consumer Producer Media Outlet Consumer Traditional Distribution

  3. Before we move on… • What is….. • Direct Distribution • Indirect Distribution • Media

  4. Distributing Entertainment • Entertainment distribution focused on… • Movies • Television

  5. Distribution Channels in Entertainment • Entertainment is mainly distributed through media outlets • Traditional Networks • Cable • Satellite • Internet • Studios • Theaters • At Home channels

  6. The Evolution of Network Television and Cable • In the early days of television, there were only 3 television network • ABC, CBS, NBC • Implementation of cable allowed consumers to choose from hundreds of channels • Gained popularity in 1980’s • Satellite and Digital Cable now offer wider selection on choices

  7. Cable Mania • Originally very limited • Has grown through… • Digital cable • HD is the future—eventually all channels will be HD • Cable offers Premium Channels • HBO, Show Time, Starz • New cable programs introduced at the Western Cable Show each December in Anaheim, California • This trade show helps get new shows into local cable channel packages

  8. The Success of Cable as a Media Outlet • Cable channels use specific shows to target demographic markets • While a lot of people still watch network TV, cable TV has many more viewers. • Cable channels can be targeted to specific markets, allowing them to get advertisers for those specific markets – • Lifetime – women’s products • ESPN – sports enthusiast products • Food Network – Cooks

  9. Internet Entertainment Media • Internet entertainment has grown dramatically over the last decade. • Types of Internet entertainment: • Social Media • Internet TV • Hulu • Movies • Netflix • Music, Books • iTunes

  10. Movie Distribution • Trailers or Previews –Advertisements for other movies shown on-screen in movie theaters or on videos sold for home viewing utilizing internet media • The movie industry is suffering from a shift in traditional distribution outlets • many people aren’t going to theaters any more – they wait for the movies to come out on DVD or Blu-Ray • Trends- • Smaller movies just go straight to DVD • Big movies available in 3D at higher price

  11. Mega Distribution: Vertical • Vertical Integration • In this system there were 8 major media conglomerates (referred to a “Big Media”) that controlled most of the entertainment media and news media in America • Goal: to streamline and keep profits in company • The idea was for one company to own all levels from books, to TV networks, to movie production, to news outlets, to theme parks • Example: Disney • Broadcast Web • Groups of television networks, production studios, and related entertainment firms that produce shows in-house for their group

  12. Mega Distribution • Disney owned everything and controlled everything from the books about their shows and movies • Golden Books • Disney Channel • Disney Pictures • ABC Channels • Disney Theme Parks

  13. Mega Distribution: Horizontal • Two or more organizations at the same level join together for distribution/marketing purposes to capitalize on a new opportunity • “Mergers”

  14. Mega Distribution • Disney Horizontal Integration

  15. Who really controls distribution? • THE BIG 6! • http://www.businessinsider.com/these-6-corporations-control-90-of-the-media-in-america-2012-6

  16. The Down Side to Mega Distribution • Integration was a popular idea in the early 2000’s, • Many integrated media conglomerates failed and have now divested themselves of the various media • Hard to control quality and operations

  17. Using Retailers to Distribute • Most “Home Entertainment” products are sold through retailers • Brick and Mortar • E-Commerce • Mostly Consists of • DVD’s and Blu-Ray Discs • To help stimulate sales the production company often provides the retailer with a point of purchase display

  18. DECA Role Play • Groups of 3! • You will work with your group members to come up with a distribution solution for the problem • Get creative! • Carefully follow instructions on handout • The last 20 minutes of class we will present our ideas • Winners get a prize!

  19. Distributing Sports

  20. Distributing Sports • Distributing professional sports through • Media • Stadiums • Professional Sports have a special situation…they are cartels!

  21. Distributing the Game • Individual teams within a professional league are separately operated businesses, but they are not in competition with each other as they would be in a free open market • Each team is a member of a cartel • A cartel is a combination of independent businesses formed to regulate production, pricing, and marketing of a product

  22. Distributing the Game • The professional leagues (NFL, NBA, MLB, NHL) are all sports cartels • Pro leagues are independent sports teams grouped together and governed by a league agreement • The league controls the marketing mix of the team – including distribution

  23. Stadium as Place • Regions with a large potential customer base are considered favorable for a team • Owners try to get public funds to subsidize the team • Distribute more than the game • Entertainment • Community Events

  24. Media Outlets for Sports • Traditionally distributed through network TV and cable stations • The biggest profit center is television revenue • TV revenue is generated through the sale of advertising time • TBS & CBS have just made a deal with the NBA for rights for the next 15 years

  25. Vertical Integration in Sports • Sports teams vertically integrate by owning all levels • Minor league teams • Major league teams • Groups own different teams- • Atlanta Spirit – runs Phillips Arena • Manages Hawks & Thrashers • Manages Entertainment Events

  26. Braves Role Play • The new SunTrust Park in Cobb County is looking to distribute innovative entertainment events through their new facility • Groups of 3! • We will present our presentations at the end of class • Winners get a prize! • Remember: THIS IS FOR A GRADE 

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