Title: Entertainment Marketing
1Unit 4
- Entertainment Marketing
- Finally!
2Lesson 1 Overview History
- Think about your week.......
- What have your spent money on?
3Entertainment
- defined whatever people are willing to spend
their money and spare time viewing, rather than
participating in - sports and the arts, viewed in person or in
broadcast or recorded form - movies, theatre, the circus, traditional athletic
contests - professional wrestling is an exaggeration of a
real sport - Can you provide another definition?
- TV Movies Radio Performing Arts
- Internet Theme Parks Travel
4Statistics
- "American children and adolescents spend 22 to 28
hours per week viewing television, more than any
other activity except sleeping. By the age of 70
they will have spent 7 to 10 years of their lives
watching TV."-- The Kaiser Family Foundation - At present, about two-thirds of the people in the
United States are Internet users. These people
spend about just over one hour per day on the
average using the Internet. Young adults average
10 hours online per week .http//www.zonalatina.co
m/Zldata371.htm - The entertainment industry is a 200 billion/yr
market - During 1990s movie revenue doubled from 12.8 to
24.9 billion dollars with over 500 films released
each year - Theme parks collect over 5.5 billion per year in
ticket receipts
5Two Ways to Look at it
- market entertainment as a product pursue the
free time of people who can also pay for the
entertainment - 2. using entertainment to market a product or
service is hiring celebrities to endorse related
products
6market segment
- group of people who have the ability and desire
to purchase a specific product - Common practice is to collect marketing
information about the largest market segment for
the product, then customize products or services
to the tastes of the market.
7Marketing to Baby Boomers (1946-64) from
research-
- -surge in Boomer spending began in 1993 and will
continue to grow until 2008 when the number of
46-year-olds begins to decline - -impact on leisure time activities, such as
entertainment, will continue the major consumer
economic surge started in 1946 with diapers and
baby formula - -Boomers wont retire soften the line between
complete retirement and work
8So what are some benefits of marketing
entertainment to a small audience (Boomers) than
to the masses?
9What type of entertainment do you think Boomers
prefer? What about people in their 30s?
Tweens? Why?
Lets look at the Opening Act on page 14
3 TV Shows Products
10What do you think entertainment was like in the
early days?
- Before understanding magnitude of entertainment
marketing today, we need to go back and see the
beginnings of entertainment
11Theater
- One of the oldest forms of entertainment, and
probably the LEAST promoted! - Have you been to any plays, musicals?
- What are some famous plays/musicals? How did
they get to be famous or well-known?
12Theater
- Primitive
- members used dances to calm the supernatural
powers, get rid of evil spirits - European / Greek Theater
- Started by the Ancient Greeks. Women were not
allowed to perform. Early Roman actors were
slaves owned by managers. Later actors were
citizens and became famous and wealthy. - The Renaissance Theater
- More worldly, plays were performed in inns,
hotels, and halls, and slowly moved to theaters
of their own. - 19th Century Theater
- Due to the Industrial Revolution, many classes of
people moved into the cities and theater began to
change. New forms of theater were created for
working people such as Vaudeville Burlesque The
United States still depended on Europe for it's
drama theater styles. - 20th Century Theater
- Modern stages have newer technology and special
effects. People not only come to theaters for
drama, but they come for music, - entertainment, education,
and to learn something new!
13Marketing of Theater
- mostly posters, newspapers, magazines, and
word-of-mouth - Little promotion on billboards, radio, and
television, upscale or theater magazines and
other publications - Word-of-Mouth major source of promotion for
Broadway shows - Manhattans district is on Broadway between 42nd
Street and 59th Street - Has anyone heard of 42nd Street?
- Rosie ODonnell is credited with increasing sales
of Broadway tickets because of her endorsements
14Music
- How do you report the history of music? starting
with basic vocals and natural sounds in
prehistoric days up through wide variety of
styles and genres. - Today, music is varied, with real instruments and
technological advances. - MTV debuted in the 1980s
- Dire Straits Money for Nothing
15Music Marketing
5
- Lets look at the Opening Act on page 176
- How many of you listen to rap? Favorite artists?
- Why do you think so many listen / like rap?
- Why would rappers be advised to soften their
style?
16Todays Top Music
6
- Marketing Music
- sampling inclusion on a CD of excerpts from the
music of other artists, can be compared to a
trailer in the movies - Concerts promote album sales (primary income
method of artists) - Word of mouth, radio, internet
- How about rap?
- Madison Avenue in New York is the home of
American advertising for rap
17Distributing Music
4
- Ever heard of ClearChannel broadcasting?
- They are said to control 90 of the music we
hear on the radio. - Have you bought a CD lately? Why or why not?
- MP3 and the Music Download business
- the 12 billion-a-year music industry is taking a
hard look at its way of doing business - Musicians are bypassing record companies to
market directly to their fans through the Internet
18Money in Music
- Cost to make the average album 125,000
- In order to get heard/well known you need
connections (agency/label) - Every year 7,000 albums released
- Artists get approximately 15 (producers,
agencies, labels, retailers all take a cut of the
profits)
19Film
- What can you remember about the history of films?
20Film History
- Louis LePrince first moving pictures in Britain
in 1888 - Lumiere brothers first to present a projected
movie to paying audience in a café in Paris in
1895, promotion followed with the construction of
theaters for movies - Films were silent and lasted only a few minutes
- The Jazz Singer the first movies with sound
(1927)movie clip
21Marketing of Film
- Television commercials, trailers (prior to other
films in theaters or DVD), newspapers, internet - Ever heard of the Blair Witch Project?
- Rumors on the Internet made people think the
story was true. Youll learn later how much it
cost to make and how much money it made! - Marketing of Film
- limited to posters, newspapers, magazines, and
word-of-mouth - Modern Entertainment Marketing
- technologies of all sorts changed marketing,
advertising, and distribution forever - television, radio, Internet, public buses
rolling billboard, - subway cars ad panels
22Why would a movie be released directly to video
rather than a movie theater first?
23No More Late Fees!
- videos are sold at mass-market retailers such as
Walmart - point-of-purchase (POP) displays (big displays
with catchy life-size display pictures holding
the DVDs help increase sales) - Netflix has changed the movie rental business for
good - Other movie rental companies have followed suit
- Cable/Satellite pay-per-view services are growing
in popularity - People dont even need to leave the comfort of
their own homes to get a flick! - McDonalds is even renting DVDs (and only 1!)
24The American Film Institute (AFI) announced the
100 greatest American movies of all time, as
selected by a blue-ribbon panel of leaders from
across the film community.
- 1. CITIZEN KANE (1941)
- 2. CASABLANCA (1942)
- 3. THE GODFATHER (1972)
- 4. GONE WITH THE WIND (1939)
- 5. LAWRENCE OF ARABIA (1962)
- 6. THE WIZARD OF OZ (1939)
- 7. THE GRADUATE (1967)
- 8. ON THE WATERFRONT (1954)
- 9. SCHINDLER'S LIST (1993)
- 10. SINGIN' IN THE RAIN (1952)
25Top 10 Funny and Scary Films
- Some Like It Hot (59)
- Tootsie (82)
- Dr. Strangelove (64)
- Annie Hall (77)
- Duck Soup (33)
- Blazing Saddles (74)
- MASH (70)
- It Happened One Night (34)
- The Graduate (67)
- 10. Airplane (80)
- Psycho (60)
- Jaws (75)
- The Exorcist (73)
- North by Northwest (59)
- Silence of the Lambs (91)
- Alien (79)
- The Birds (63)
- The French Connection (71)
- Rosemarys Baby (68)
- 10. Raiders of Lost Ark (81)
268 Most Expensive Films
- King Kong 2005 207,000,000
- Titanic 1997 200,000,000
- Spider-Man 2 2004 200,000,000
- Chronicles of Narnia 2005 180,000,000
- Troy 2004 175,000,000
- Waterworld 1995 175,000,000
- Terminator 3 2003 175,000,000
- Wild Wild West 1999 170,000,000
27The Big Eye in Every Room
28Television
- television provided a wide-open distribution
channel to consumers - The early days of television and marketing
- end of WWII (nine television stations and fewer
than 7,000 working TV sets in the U.S.) - October 1945 more than 25,000 people came to
Gimbels Department Store in Philadelphia to
watch the first demonstration of TV - 1945 American Association of Advertising
Agencies encouraged the start of television
advertising - TV advertising hooked the imagination of the
viewer-consumer in ways not possible by
newspapers and magazines - 1946 NBC and Gillette Company staged a
heavyweight boxing match viewed by an estimated
audience of 150,000 watching on 5,000 TV sets (an
average of 30 people watching the fight on each
set)
29History of TV
- Televisions Increasing Influence
- major national corporations lined up to buy time
and produce advertisements - pricing of time for TV advertisements was quickly
tied to the number of viewers the programming
attracted - television stations invited advertisers to use
their expertise to create commercials - nine TV stations of 1945 grew to 98 stations by
1949 - 1996 223 million television sets in the United
States (many homes have at least two television
sets)
30Timeline of TV
- 1945 Fewer than 7,000 TVs in U.S.
- 1946 ABC network formed
- 1947 Howdy Doody show aired
- Ed Sullivan Show, advertisers
- accept tv and buy time
- Ad sponsors leave radio for tv
- _at_ record rates
- I Love Lucy-sitcom is born
- 1951 1st color TV
- Protests about program content,
- advertisers spend 228 million for
- TV time
- 1953 Color TV
- 1958 Advertisers for radio/TV hit 2 billion
- 1963 Instant replay introduced
- Debate over cigarette commercials
- First color network.._________
- 1967 Survey 63 dont like commercials
- 1969 Cigarette advertisers agree stop ads
- 1971 FCC prohibits 3 networks to re-
- broadcast primetime shows
- 1979 ESPN debuts
- 1980 CNN, MTV
- 1982 Home Shopping Network
- Apple Computer commercial-starts
- havoc for Super Bowl, Michael
- Jacksons hair on fire from Pepsi
- commercial
- Neilson ratings gets tech advance of
- w/people meter
- 1988 Video Cassette Recorder
- 1991 Coke sponsors Olympics
- 1992 Infomercials are born
- 1993 Letterman moves from NBC to CBS
- World Cup reaches 33 billion
- baseball strike (loses 95 mil in ads,
- 500 million in spending)
31How are you entertained?
- Cable Mania
- cable television programs are picked up by a
master antenna and delivered to homes throughout
the country, users pay for cable - new cable channels target specific demographic
markets - Fox Family Channel offers the girlzChannel and
the boyzChannel aimed at the Junior-high-age
market - Let's look at some channels on cable TV.
32Satellite TV
- allows rural areas to receive many or any of the
stations offering more than 200 channels - must buy a dish (starting at 130) and subscribe
to a monthly service (beginning at 20 per month) - expected to grow to 40 million households by 2007
- buy products through the telephone or Internet
after seeing them advertised on television - What are the disadvantages of having hundreds of
channels? - What are advantages of satellite TV versus cable
TV? - How much longer will broadcast channels be
available free w/an antenna?
33Entertainment Technology
- How many of you use the Internet? WHY?
- How many use it to find info?
- What about sports/entertainment info?
- Do you think marketers know when YOU visit these
sites? - How, what info are they collecting?
34Internet
6
- Been around since the 1960s (for government
purposes originally) - Grew in 1970s with Universities
- MAJOR ISSUE with the INTERNET?
35Internet Entertainment
5
- Its expected in your lifetime that television
and internet use will be a combined service. - Each room of your home will be connected to your
home server where you will be able to watch TV,
surf the net, etc. - Imagine watching your favorite music video and
clicking on anything in the video (clothing,
jewelry, furniture) And youd be able to have it
sent directly to your home! - Your home server would hold your movies, music,
television etc.
36Amazing Growth
- Now its estimated that in Sept 2006 there were
over 108 million MySpace registered users. - If MySpace were a country itd be the 11th
largest in the world. (between Japan and Mexico) - There are over 207 billion searches on Google
each month. (What did we do BG?) - The number of text messages sent per day exceeds
the total population of our planet. - 3,000 books are published each day
- 47 million laptops were shipped last year
37Internet Entertainment
- marketers prepare advertising campaigns geared
toward those users - Internet is becoming the most valuable place to
advertise (320 million Internet users and 55
million being Internet shoppers anticipated in
2002)
38Profits and Distribution
4
39The Profit Makers-Movies
- The Big Six movie studios 20th Century Fox,
Paramount Pictures, Sony Pictures, NBC Universal,
Warner Brothers Entertainment, Buena Vista Group. - Average cost to make a movie in 2004
- 63,800,000!
- Average cost to market a movie in 2004
- 39,000,000!
40Trailers and Previews
- When waiting for a movie to start, marketers have
a captive and target audience - These trailers or previews are CRITICAL to
attracting an audience.
41Large Studio Role
- Paramount Pictures (Viacom, Inc.) and Twentieth
Century Fox Film Corporation (News Corp.) were
successful thanks to the blockbuster - (Titanic which sold more than 1.8 billion in
tickets worldwide) - Large studios take on the role of financial
manager in an effort to spread the economic risk
of making a movie - Titanic first movie to earn more than 600
million in North America - promoters never missed a promotional
opportunity and succeeded at each - Titanic was still showing in 502 theaters the
weekend prior to its video release - stores all over the country stayed open after
midnight to accommodate customers who lined up to
purchase the video when it was released at
1201 a.m.
42How can studios generate a profit besides ticket
sales in the United States? How might the movie
distribution system differ in countries other
than the U.S.?
43Profit and Opportunity
- Other Sources of Income
- Profit from an American film depends largely on
the popularity of that film overseas - income from merchandising, soundtracks,
relationships to theme parks, global releases,
and ticket sales in the U.S. and abroad - The Blair Witch Project grossed 36 million in
ticket sales during its first three weeks in
theaters - Fox sold nearly 2 billion in movie tickets
outside the U.S. (Titanic, Theres Something
About Mary, The X Files) - International release of a movie can increase box
office receipts by 50 to 100 percent - Most films generate less than 25 percent of their
final income from domestic ticket sales alone - The 1.3 billion people in China is a promising
new potential audience
44Big Time Failures
- Gigli 2003 Budget 54,000,000
- Estimated
marketing costs 20,000,000 - Worldwide Gross Box office
7,266,209 -
US Box Office Gross 6,068,735 -
Loss 70,366,896
- The Stepford Wives 2004 Budget
90,000,000 - Estimated
marketing costs 35,000,000 - Worldwide Gross Box
office 101,913,194 - US
Box Office Gross 59,484,742 -
Loss 74,043,404
Nicole Kidman, Glen Close, Matthew Broderick,
Bette Middler, Christopher Walken, Jon Lovitz,
45(No Transcript)
46Is it a movie or a commercial?
- ancillary rightsthe permission to use a films
characters on other products such as toys, games,
and clothing - Toy Story and The Lion King (toy promotion
bonanzas) promotional plans for toys were
finished before the scripts for the movies were
completed - making a good movie is the key to selling toys
- parents vote for or against a movies popularity
with the dollars they spend on the related toys
and merchandise
47Why would a movie be released directly to video
rather than a wide release (2000 theaters or
more) first?
48So let's look at an example p. 194 13
- A local band with five members has the following
expenses - Renting a studio 2400
- Release song over web 5000
- Duplication of CD 50,000 (20,000 copies)
- Advertising 62,000
- Fees (agent/songwriter) 10
- If CD sells for 15 per copy, how many copies
will have to be sold in order to clear 10,000
for each member of the band?
49Walt Disney Company.more than castles and
cartoonsIts a MEGA conglomerate..all of these
companies are under the same ownership
- Theme parks
- Video distribution
- Movie studios
- ABC TV
- Television production
- Hockey team
- ESPN
- Broadway shows
- Publishing
- Cruise line
50Marketing Entertainment Today
Lesson 3
51Global Challenges
- uncertainty about government policy in some
countries chills the spark of interest in selling
entertainment products in those countries - countries want to develop their own entertainment
industry - France is very protective of its culture in the
film and television industry - Global Distribution
- Some examples
- Disney In Europe, Elvis in Israel,
- Intl Music, Country Music all over,
- Intl Sports
52Awards Event Marketing
- Have you ever watched
- an award show?
- What did you think?
- What does it mean financially for a movie to be
nominated? - What kind of PROMOTION is this? (advertising,
sales promotion, publicity or personal selling)
53AwardsSales
- Simply being NOMINATED is all it takes
54Oscars
- The Oscars statue looks like Uncle Oscar
- Given by the Academy of Motion Picture Arts and
Sciences - 5,000 members determine each Academy Award
- Oscar nomination is a promotional bonanza for a
motion picture, director, studio, and star,
creates exciting media coverage increases the
number of ticket buyers - winning an award and getting a nomination have
promotional value that money cannot buy Getting
an Award - weeks prior, studios spend as much as 15 millon
publicity - -second-highest TV viewership after the
Super Bowl - ABC network has purchased broadcast rights to the
Academy Awards through the year 2008 - In 1998 ABC charged 915,000 per ad minute during
the Oscars.
55The Grammys
- Look like a gramophone.old fashioned record
player. - Given by the National Academy of Recording Arts
and Sciences (NARAS) an association of more than
13,000 musicians, producers, and other recording
professionals - 92 categories in the Grammy Awards
- winners selected by vote of the committee members
- brings a lot of attention to a musician but does
not guarantee success or sales - Milli Vanilli (prize later revoked when the
group admitted that they did not sing one note on
their prize-winning album)Girl You Know It's True
56 The Emmys
- Given by The Academy of Television Arts and
Sciences - 8,000 member organization Primetime Emmy for
excellence in nighttime and daytime television - winning shows or stars can increase the viewing
audience - Whats your agenda?
- The Practice Camryn Manheim dedicated her Emmy
to all the fat girls (brought attention and a
marketing boost to size-oriented publications) - Why do the Emmys distinguish between nighttime
and daytime shows?
57The Tony Awards
- named after Antoinette Perry, who served as the
head of the Board of the American Theatre Wing - given to professionals in theater for
distinguished achievement - since 1976 recognizes regional theaters that
have contributed to artistic achievement and
growth of the theater - Rating of the awards went up with Rosie ODonnell
as the host in 1998 - How can we increase interest in the Tony Awards?
- Who do you think would be a good host for awards?
58 - How would you define Recreational Activities?
- Give some examples of these activities?
- What is the difference between entertainment
recreation?
59Marketing Recreation
60Recreation
- renewing or rejuvenating your body or mind with
play or amusing activity - Recreational Activities involved in travel,
tourism, and amateur sports not associated
w/educational institutions - Can be customized to fit many different income
levels.
61Recreational Sports
- entice people away from home-based entertainment
(golf, tennis, bowling, hiking, snow skiing, snow
boarding, biking, travel, tourism) - recreational sports require purchase of products
and services - the participant must make a commitment of time
and money for lessons, practice, equipment, and
travel to a facility or location - planning the product or service is very important
- people remaining active throughout lives rec.
activities can cross generations
62Lets look at the Opening Act
63Travel and Tourism
- Tourism traveling for pleasure whether the
travel is independent or tour-based - tourism includes vacations, honeymoons,
conventions, and family visits - The travel industry employs 130 million people
and is the worlds largest industry!
643 Think Critically p. 23
- Why do you think California attracts more
visitors than any other state in the nation? - How could South Dakota and Oklahoma could attract
more travelers?
65Travel Technology
- E-Tickets
- airlines offer web sites to book their own travel
tickets (e-tickets) instead of buying them from a
travel agent - Travel Traditions
- travelers prefer convenience and experienced,
informed guidance of a travel agent to save time
(takes care of airline, hotel, car rental, and
dinner reservations)
66The Traveler
- The Business Traveler
- airlines and hotels cater to these people (major
source of profit) - business fares make up 60 percent of the airline
fares - airlines have member-only clubs in most major
airports - The Tourist
- family vacations are a booming business
- 1998- 108.4 million U.S. adults took two
vacations - family reunions are a major incentive for the
travel industry to market to adults - self-indulgence travel luxurious culture
travel highlight historical resources - Ecotourism
- one of the fastest growing segments of the travel
industry - responsible travel to natural areas that
conserves the environment and sustains the
well-being of local people - matter of educating the travel industry and
tourists
67Theme Parks/Resorts
- First theme parks were back in 1550s in Europe.
- Today the US has over 600 theme parks
- Disneyland (1950s) changed parks into what they
are today - New rollercoaster can cost as much as 50 million
68Theme Parks
- theme parks are family-oriented destinations
(have activities, rides, and other attractions
centered on celebrities, characters, or
entertainment that are well known to children) - Promoting theme parks means catching the
attention of the children who influence the
choice of destination - connect the theme park to movies, television, or
other interests of young people - Look at page 233 for the most popular Theme Park
69Resorts
- Aimed at adults
- Focus on a single or small number of sports
70Have you been to a Hall of Fame?
- serves as a basis for promoting tourism
- (from lacrosse to jousting, from chess to
marbles) - Rock and Roll Hall of Fame and Museum in
Cleveland - U.S. Astronaut Hall of Fame in Titusville, FL
- National Museum of Racing Hall of Fame in
Saratoga Springs - More than 200 in U.S.
- attracting visitors is critical to keeping the
hall alive - needs a perfect marketing mix right theme for
the site, located at the right exit, promoted in
the right way at the right places, and priced
just right - word of mouth is an excellent source of promoting
to future customers
71The End..