1 Objectives To examine the industries of movies, television and music. - PowerPoint Presentation

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Objectives

To examine the industries of movies, television and music.

To analyze other forms of entertainment, such as zoos, gaming, museums, cruises and resorts.

To show an introduction to entertainment marketing concepts. To discuss recent trends and controversies in the entertainment industry.

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Main Menu

Introduction

Film, Television & Music

Travel, Tourism & Gaming3Slide4

Introduction

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The Entertainment Industry

Is the term often used to describe media companies controlling the distribution and manufacture of entertainment

Is very diverse with a variety of types of entertainment and entertainment-related products

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The Entertainment Industry

Can be categorized into the following groups:

film

televisionradiomusictravel/tourismpersonal entertainment

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The Entertainment Industry

Is composed of large corporations with many investors and employees

these companies are usually corporate conglomerates

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Conglomerates

- companies which have merged with or bought out competing companies to become the major producer

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The Entertainment Industry

Is made up of only a few major companies including:

The Walt Disney Company

®Sony Entertainment®Viacom® (Paramount®)Time Warner®Vivendi Universal

®

The News Corporation

®

(20

th Century Fox

®)8Slide9

Entertainment Companies

Are structured with

vertical distribution

Perform all of the functions in the channel of distribution from producer to consumertherefore they can cross promote productsfor example, Viacom®, a major movie corporation, might promote a movie from Paramount Pictures®, one of their film companies, on Nickelodeon™

, one of their television channels

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Vertical

D

istribution

- structure which can create, produce, market and distribute products or services

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The Entertainment Industry

Contributes to the United States economy

in 2011, the industry generated more than 144 billion dollars

almost two million people were employed by the industry in 201110Slide11

Entertainment Marketing

Is the promotion, selling and distributing of items in the entertainment industry

Builds anticipation for future releases or coming attractions

Is aimed at motivating the customer to purchase the product, such as a movie ticket or DVD11Slide12

Entertainment Marketing

Utilizes the four Ps of marketing:

price

productplacepromotion12Slide13

Price

Includes the following:

creating a price for the sale of the product

calculating a mark-up percentageutilizing promotional pricing practicesdetermining discounts13Slide14

Product

Includes the following:

creating a product people will want to purchase

naming and packaging the productresearching target marketsupdating old products14Slide15

Place

Is also known as “distribution”

accounts for the process involved in introducing the product to the general public

requires determining how to transport the productincludes deciding where the product will be sold (wholesale versus retail, available online, etc.)15Slide16

Promotion

Includes the following:

determining the timing of promotions

creating activities and advertisements to increase sales choosing media outlets to use and what advertisements to runestablishing effective public relationscreating an advertising budget 16Slide17

Marketing Plans

Contain the marketing goals and objectives for a company

Provide direction for the marketing activities concerning specific campaigns

Are completed to ensure the company earns the maximum benefit from the planHelp a company monitor its performance in relation to marketing17Slide18

Entertainment Marketing

Can be accomplished using the following advertising media:

commercials

billboardsprint advertisementswebsitespress junkets18Slide19

Commercials

Are audio or video advertisements

Offer the audience insight to the product being advertised

Are short, so they often employ devices such as humor or catchy jingles and slogans to make them easier to remember19Slide20

Commercials

On television and radio are becoming less effective

digital video recorders are becoming more widely used, allowing people to fast forward commercials

radio audiences are on the decline as more consumers prefer mp3 players to radioAre becoming more popular on the Internetsome sites show commercials while waiting for pages to loadtelevision networks have begun to stream programs online with commercial interruptions every few minutes

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Billboards

Are large, outdoor signs advertising a product

Are composed of graphics and minimal

copyTraditionally are still images, though are now moving to electronic formatselectronic billboards can be connected to one another across the nation and show the same imageselectronic billboards allow for more than one advertisement to be shown, rotating the image at set intervals

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Copy

- the text of an advertisement, magazine, newspaper or other published product

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Print Advertisements

Are primarily found in newspapers and magazines

Are the most traditional form of advertising

Resemble billboards in that they rely more on graphics than copy to capture the reader’s attentionAre limited as they are still images22Slide23

Websites

Are collections of connected pages on the Internet used to display information

Have become the medium of choice for marketers as the Internet has increased in popularity

Can help market entertainment by running banners on popular sites, linking to the marketer’s homepage, or even having the entire site sponsored by an event or product23Slide24

Press Junkets

Are sponsored events where members of the press are invited out for a preview of a product, such as a movie, television show or new album

Provide the press an opportunity to preview a product before the regular audience, allowing them to write articles and review the product for the general audience

Help to build anticipation and sway consumers by using the press’s influence24Slide25

Merchandising

Is the sale of logoed goods for attractions, including:

clothing

music sales and postersstickers, magnets and toysServes as publicity after the event is over

free advertising when someone wears a band or TV show T-shirt

Keeps the event in the mind of the fan

a poster of a band reminds music fans of the concert every time they see the poster

a toy of a movie character keeps the movie in children’s minds when they play with it

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Planning Merchandising

Is an important component to planning an event

planners must estimate:

what each customer will buyhow much each customer will buyInvolves coordinating the purchasing of merchandiseWill the T-shirts be printed locally or will they be imported?

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Film, Television &

Music

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Film Industry

Is a multi-billion dollar operation

Is one of the largest portions of the entertainment industry

Is considered an oligopolyIs made up of major movie studios and indies28

Oligopoly

- a business situation in which a few firms affect, but do not control an industry

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Major Movie Studios

Are the core of the film business

Include the following studios:

Universal®Disney®Paramount®MGM®29Slide30

Indie Movie Studios

Are not affiliated with major studios

Operate on their own to make films

Include studios such as:Lions Gate®Artisan®New Line Cinema®30Slide31

Independent Film

Is on the rise because of new technology

Has seen many success stories, including:

JunoSlumdog MillionaireNapoleon DynamiteCrouching Tiger, Hidden DragonParanormal ActivityWill lead independent film makers to more exposure than in the past

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Film Industry

Revolves around movie production

Consists of the technological and commercial institutions of film making

Reaps the benefits of all facets of movie marketingfor example, Harry Potter and the Sorcerer’s Stone (2001) earned:$317 million in ticket salesDVD sales exceeding $436 milliontotal income of $1.2 billion

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Film Industry

Makes money off of movie tickets

an average of around 1.4 billion tickets have been sold each year for the last decade

the average revenue for movie tickets sales for the last decade is $8.65 billionGains additional revenue from licensingfor example, the makers of King Kong may license the King Kong character to a toy company to make a gigantic stuffed animal of King Kong

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Licensing

-

the granting of permission to use intellectual property rights such as trademarks

or patents under defined conditions

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Advertising Agencies

Are integral to movie production

Create multi-million dollar advertising campaigns for a movie

May create the following:television advertisementsmovie postersnewspaper advertisementsmagazine advertisements

online banner advertisements

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In 2006,

Superman Returns

spent $40 million on advertising and marketing

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The Television Industry

Is a major part of the entertainment industry

Is made up of television networks

distributive entities of content and programming from a central operation to television stations35Slide36

Television Networks

Were developed from radio networks and commonly use the same name

Include the following major networks:

American Broadcasting Company (ABC)Columbia Broadcasting System (CBS)National Broadcasting Company (NBC)36Slide37

Television Networks

Include cable television stations, which provide more specialized programming and have become increasingly popular over the years

Discovery Channel

® Lifetime Network®Home and Garden Television®Disney Channel®many more

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Television Advertising

Is the paid promotion of a product or service in the form of a commercial

Allows companies to purchase time slots to show their advertisements

Is generally considered the most effective mass-marketing format and the prices reflect this38

An hour-long show is actually 42 minutes of content and 18 minutes of commercials, while a half-hour show is 22 minutes of content and eight minutes of commercials.

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Television Statistics

The average American watches more than:

four hours of TV each day, 28 hours a week, or two months of non-stop TV watching per year

99 percent of households have at least one TVThere are an average of 2.24 TVs in each U.S. household 66 percent of U.S. homes have three or more TVs The TV is on for 6 hours and 47 minutes daily in the average U.S. home66 percent of Americans watch TV regularly while eating dinner

250 billion hours of TV are watched annually by Americans

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Source: A.C. Nielsen Co.Slide40

The Music Industry

Is far-reaching, extremely profitable and made up of many components

Includes the following:

radiomusic televisionmusic on the Internetconcerts40Slide41

Radio

Once had popularity similar to today’s television

radio shows used to be performed by actors and told stories much like television shows today

Is most often used today as a medium to listen to music and news41Slide42

Radio Advertising

Is not quite as effective as television advertising, due to a smaller audience

advertisements are heard rather than seen and heard

Prices are cheaper than television advertising pricesCan be used to reach an audience which is in the radio station’s listening area42Slide43

Radio Facts & Figures

More than 600 million radios in use in the U.S.

Average U.S. household has 5.6 radio receivers

Radio reaches 96 percent of people 12 and older weekly Over 13,500 registered radio stations in the U.S. Based on Arbitron figures 43Slide44

Satellite Radio

Is a digital radio signal which is broadcast by a communications satellite

and covers a much wider geographical range than normal radio signalsAllows listeners to listen to the same radio station regardless of their locationRequires the purchase of the equipment and a usually a monthly service feeIncludes the following providers:Sirius®XM®

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Music & Television

Involve the incorporation of music videos into the music industry

Include a number of music television channels which promote an artist’s music by playing music videos

MTV®VH1®CMT®Give artists another creative outlet to express their music

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Music & the Internet

Have become related as a result of:

music file downloading

many companies such as iTunes® and Rhapsody® have made music downloading easy the popularity of music downloading has significantly increased with the production and mass marketing of mp3 playersimproved online streaming

online radio stations such as Pandora

®

,

Jango

®

and Spotify® are rising in popularity 46Slide47

Concerts

Are the live performances an artist completes while on tour

Are held at attraction venues in the city which is visited

Support album salesProvide public exposure and publicity in local communitiesGenerate revenue from ticket sales47Slide48

Ticket Sales

Bring in the main portion of revenue for a concert or event

Are priced according to attraction, venue and location

more well known attractions are more expensivethe smaller the venue the more expensive the ticket due to limited seatingthe more urban the location, the more expensive the ticket because more people have the ability to buy a ticket

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Award Shows

Are held to recognize and award actors and musicians for outstanding performances in film, television or music

Include:

Academy Awards (Oscars)filmEmmy AwardstelevisionGrammysmusicTony AwardstheaterBAFTA Film Awardsfilm/television

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There are award shows aimed at specific audiences as well, such as the MTV Music Awards, Teen Choice Awards, Kid’s Choice Awards as well as others.Slide50

Award Shows

Are often used to promote new entertainment products

examples:

a new movie provides a sneak peek at a trailer during the Academy Awardsa pop singer performs a new single at the MTV Music Awardsa Broadway play performs a song at the Grammys50Slide51

Concerts Streamed on TV

Have increased in popularity

Have become more viable because of an increasing number of specialty music channels on television

Can offer in-concert advertisements to viewersWill continue to gain in popularity as the quality of picture and sound increase through better technology

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Trends in the Entertainment Industry

Include the following:

piracy

independent production

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Piracy in the Entertainment Industry

Is the unauthorized buying, selling or utilization of movies or music

Is increasingly prevalent in the film and music industries

Appears to continue and expand in the near future

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Piracy

Is considered theft

Costs industries millions of dollars in lost sales each year

Is often facilitated by the Internet and downloadable programsshareware is a computer application allowing users to download music, software and movies often illegally May also be facilitated by street vendors for physical copiesother countries such as China do not vigorously enforce copyright law

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Independent Production

Is an increasing trend in the movie and music industry

Is the self-production of a video or song

Has been helped by new technology such as digital videodigital video editing programs, such as Windows® Movie Maker®, have turned average people into legitimate independent film makers

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Travel, Tourism & Gaming

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Travel & Tourism

Is a growing facet of the entertainment industry

Includes the following:

zooscasinosmuseumscruises and resorts57Slide58

Zoos

Allow people to view a variety of plants and animals

Provide an attraction for visitors and citizens of a city

Are often seen as a way of letting people appreciate nature58Slide59

Services Offered by Zoos

Create a majority of revenue brought in by zoos

Include the following:

guided toursanimal showsgift shops59Slide60

Guided Tours

Are usually provided at an additional cost for customers

May be given on a walking tour

Have recently seen an increase in bus tours60Slide61

Zoo Shows

Provide entertainment to customers

Are usually provided free of charge at certain times of the day

Allow animal handlers to show off the animals in a playful lightGive the animals proper exercise and nutrition61Slide62

Gift Shops

Offer customers a chance to take home a piece of the zoo

Provide products such as animal posters, framed art and stuffed animals

Provide zoos a significant amount of income62Slide63

Zoos

Are often funded through endowments, which are donation funds invested to generate income

major donors may be recognized by having an exhibit named for them

Are also funded by city governmentsAre often used for scholarly research to observe the animals Can serve as a safe haven to animals which were injured in the wildSlide64

Casinos

Are locations where individuals can play card games, slots and sports books

Usually are built into hotels

Are a large source of revenue Las Vegas Sands Corporation®, a casino company, brought in $2.3 billion in 2006

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Casino Development

Is often controversial

Is supported by those who say casinos foster economic growth

area surrounding the casino will become developed and bring money to a communityIs deterred by others who cite increased traffic and moral issues65Slide66

Casinos

Serve as a large draw for tourism to certain cities, for example:

Las Vegas

RenoMonte CarloHave begun to use the Internet for gamingmany casinos have sites allowing the play of online poker, blackjack, roulette or betting on certain sports games66Slide67

Museums

Are usually aimed at educational opportunities

Vary in nature and include:

history museums art museumsscience museumspop culture museumsAre usually run as nonprofit organizations

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Museums

Generate a majority of their revenue from areas outside of ticket sales

many museums offer free admission

May possess movie theaters for increased attendance and educational filmsHave recently added guided audio toursmany audio tours can now be performed via cell phones; users dial a certain sequence to find out information about an exhibit68Slide69

Gift Shops

Provide museums a significant amount of income, much like zoos

Offer customers a chance to take home a piece of museum history

Provide products such as posters, calendars and jewelry69Slide70

Cruises

Are a popular form of entertainment and vacation

Take place on large ships where people board and stay in rooms, or “cabins”, while they cruise to different locations

Incorporate different types of shows, extensive food set-ups, drinks and games as added entertainment, all of which are included in the price of the cruise70Slide71

Cruise Industry Statistics

In 2008 a record of 12.8 million passengers were forecasted to cruise

The cruise industry is the fastest-growing category in the leisure travel market

since 1980, the industry has experienced an average annual passenger growth rate of more than eight percentSince 1990, over 128 million passengers have taken at least a two-day cruiseThe Caribbean is the number one cruise destination

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Source: the Florida-Caribbean Cruise AssociationSlide72

Resorts

Are locations used for recreation and relaxation

Are much like hotels, except are all-inclusive

meaning they provide amenities such as food, drink, sports, shopping and entertainment72Slide73

Top Ten Resort Towns

The Hamptons, New York

Aspen, Colorado

Palm Springs, CaliforniaJackson, WyomingKey West, FloridaCherry Hills Village, Colorado

Hilton Head Island, South Carolina

Newport Beach, California

Lake Geneva, Wisconsin

Sandpoint, Idaho

Source: AOL Travel

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Attraction Venues

Are physical buildings/arenas where multi-purpose events are held

Offer cities and companies flexibility when planning events

for example, an attraction venue might have a concert on one night and a basketball game the next74Slide75

Gaming

Is considered personal entertainment in the entertainment industry

Has increased drastically in size over the past 20 years

Sold over 101 million units of hardware in 2008Is a huge form of entertainment for men and women under 3575Slide76

Gaming Consoles

Are the physical hardware which allow you to play video games

Include the following consoles:

Nintendo® Wii™Microsoft® Xbox 360™PlayStation 3

®

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Software Companies

Develop video game software (games) for consoles

Include the following major companies:

EA Sports®Activision, Inc.®THQ Inc.®

Midway Games Inc.

®

KONAMI Corporation

®

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Software Companies

Are relatively young companies

Pay gaming consoles for the ability to be official software titles

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Software licensing allows companies such as PlayStation

®

to have other sources of income.Slide79

Online Gameplay

Allows gamers to connect with other gamers through the Internet

Usually costs additional money for customers, creating additional revenue for console makers

Continues to improve in speed and technology79Slide80

In-Game Advertising

Is the advertising of real companies inside the virtual world of video games

Presents the future of revenue for gaming companies

Will continue to increase if gamers show they can be impacted by in-game advertisements

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Video Game Violence

Is an increasingly heated debate

Is perceived by some to translate into real violence and aggression

Has led to a video game ratings system to protect children from offensive content81Slide82

Resources

Gilmore, T., Kim, D. and

Jolliff

, W. “Annual Industry Accounts”. Bureau of Economic Analysis. May 2012. 12 Sept. 2012. “Annual U.S. Video Game Sales” NPD Group. 26 Feb. 2008. retailindustry.about.com“2005 Essential Facts” The Entertainment Software Association. 26 Feb. 2008. www.theesa.comVitka, William. “In Game Advertising”. CBS News. 16 July 2005. 26 Feb. 2008. www.cbsnews.com“2006 Annual Report” Las Vegas Sands Corporation. 26 Feb. 2008. media.corporate-ir.net

Eichner

, Tina. “Fatal zoo attack may increase underwriter scrutiny” Crain Communications, Inc. 18 Feb. 2008. 28 Feb. 2008. www.businessinsurance.com

Yardley, Jonathan. “The Big Picture.”

Washington Post

. (26 Feb. 2005) 26 Feb. 2008. www.washingtonpost.com

Film Bug. 26 Feb. 2008. Misja.com 26 Feb. 2008. www.filmbug.com

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Resources

Samuels, Edwards.

The Illustrated Story of Copyright.

2000. www.edwardsamuels.comTyler, Joshua. “Superman’s Return a Dismal One”. Cinema Blend. 2 June. 2006. 26 Feb. 2008. www.cinemablend.com“News for Napoleon Dynamite” Internet Movie Database. IMDB.com, Inc. 26 Feb. 2008. www.imdb.com

Cruise Industry Overview-2008

. (2008). Retrieved March 24, 2009, from Florida-Caribbean Cruise Association: http://www.f-cca.com/downloads/2008-Cruise-Industry-Overview.pdf

Top 10 Resort Towns

. (2009). Retrieved March 24, 2009, from Travel.AOL.com: http://travel.aol.com/travel-ideas/domestic/galleries/resort-towns

Current Employment Statistics Survey.

Bureau of Labor Statistics. (2012). Retrieved September 12, 2012, from http://data.bls.gov Gilmore, T., Kim, D. and Jolliff, W. “Annual Industry Accounts”. Bureau of Economic Analysis. Retrieved September 12, 2012, from http://www.bea.goc/scb/pdf/05%20May/0512_industry.pdf

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Resources

How Cruises Work

. (1998-2009). Retrieved March 24, 2009, from

HowStuffWorks: http://www.howstuffworks.com/cruise.htmInvention of Radio. (2009). Retrieved March 24, 2009, from About.com: http://inventors.about.com/od/rstartinventions/a/radio.htmRadio Resources. (2009). Retrieved March 24, 2009, from News Generation, Inc.: http://www.newsgeneration.com/radio_resources/info.htmTelevision History. (2009). Retrieved March 24, 2009, from About.com: http://inventors.about.com/od/tstartinventions/a/Television.htm

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Resources

(2009). Retrieved March 24, 2009, from The Great Geek Manual: thegreatgeekmanual.com

(2009). Retrieved March 24, 2009, from BlueOregon.com: www.blueoregon.com

(2009). Retrieved March 24, 2009, from San Diego Zoo: www.sandiegozoo.orgCable Television History. (2009). Retrieved March 24, 2009, from About.com: http://inventors.about.com/library/inventors/blcabletelevision.htmTelevision & Health. (2007). Retrieved March 24, 2009, from The Sourcebook for Teaching Science: http://www.csun.edu/science/health/docs/tv&health.html#tv_stats

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Acknowledgements

Project

Coordinator:

Meghan Blanek

Production Manager:

Dusty Moore

Executive

Producers:

Gordon Davis, Ph.D.,

Jeff Lansdell

Production

Coordinator:

Justin Jones

Graphic Designer:

Ann Adams

©

MMXIII

CEV Multimedia, Ltd.

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Technical Writer:

Jessica Odom