Chapter 8 notes.ppt - thompsona

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					    Chapter 8

Entertainment Industry
    Lesson 8.1

Entertainment Profits
    The Profit Makers
Only ____ of 7 major Hollywood studios
turned profits in 1998, despite record
Paramount Pictures (Viacom, Inc.) and 20th
Century Fox Film Corporation were
successful thanks to __________ ($1.8B
Others suffered b/c of high cost of the
____________ and distribution
Cost Cutting Strategies
             Cut the # of _______
             Release Movies
             l   Released in more than
                 ________ theaters at 1
             Low budget movies
             capitalize on the
             promotional budget of
             major movies by using
             similar __________ in
             the title
Profit and Opportunity
Profit depends              l   Income from:
largely on the                  l Merchandising
___________ of the              l _____________
film overseas                   l Relationships to

Generating film                   ________ parks
revenue:                        l Global releases

l   Ratio of tickets sold       l Ticket sales in the

    to the cost of                U.S. and abroad
    production process
Cultural Profit Opportunities
Worldwide distribution   Most films generate
revenue is critical      less than ______ of
Fox sold nearly $2 B     their final income from
in movie ticket sales    domestic ticket sales
outside the U.S. 1998    alone
______________           The 1.3 B people in
release can increase     _________ is a
receipts by 50 to        promising new
100%                     potential audience
         Fast Money
The difference between entertainment
and sports is determined by the
___________ racing is one of the
fastest growing forms of entertainment.
l Created a mutual fund to secure financing
  for their expensive form of entertainment
l Investment stocks from 50 sponsor
  companies are included
l Individual drivers have 1 sponsor who pays
  for the car and the upkeep.
       Lesson 8.2

Distribution of Entertainment
Ways to Distribute
          T.V. networks
        Cable Mania
# of cable channels      __________ fee
has increased            New cable channels
Programs are picked      target specific
up by a master           demographic
_________ and            markets
delivered to homes       80% of American
throughout the           homes had cable
country                  hook-up
_ time cost to install
Satellite Television
         Allows ______ areas
         to receive stations
         Must buy a ___ ($130)
         Subscribe to monthly
         Offering more than 200
         40 M homes by 2007
Internet Entertainment
Web based companies that markets
sports info, interactive games,
____________, chat rooms and sports-
related merchandise online
_________________: selling
merchandise on the Internet
Internet is becoming most valuable
place to advertise
       Movie Marketing
_________ or previews –
advertisements for other movies
Well-coordinated promotional plan can
wring out the last drop of consumer
_______________ ads can also
increase video rentals.
l   Use suggestive selling
    Effective Examples
_______________         ______________
l Developed web         l Bypassed theater
  page that made it       release
  look like a real      l Sold directly o
  news story              rental and sales
l Added short,            of video ($10 mil.)
  intriguing trailers
l Per-screen revenue
  was over $56,000
See It At Home
       _________ sold at mass
       market retailers
        l   Wal-Mart
       Stimulate sales in music
       and video specialty
       stores through Point-of-
       Purchase (_____)
       Movies on DVD may
       replace videotapes
       Lesson 8.3

Marketing Music and Theater
     Today’s Top Music
Hip-hop sales inc.         Mainstream Rap
Marketing Rap              l   Madison Ave in NY is
l   __________ –               home
    inclusion on a CD of   l   Singers and dancers
    excerpts                   featured in TV ads.
Many music label           l   Changing to more
executives use                 ___________
__________ to                  messages
decide what is
     Promoting Theater
Broadway uses:          ___________ is
billboards, radio,      credited with increasing
upscale theater         sales
magazines, and other
publications            Metropolitan Opera of
____________ is         New York (The Met)
major source of         l   Duke University course
promotion               l   Gain knowledge and
                            appreciation for the arts
Fascination with the
lights and the people
         Distributing Music
__________                    ____________
l   Agent, promoter, and      l   Mpeg Layer 3 – pirating
    artists manager               of music for free,
l   “Wildcat” tours cut out       illegally from the
    the agent                     Internet
l   Robert F.X. Sillerman     l   Free software program
    bought out most           l   Still changing by finding
    regional promoters.           ways to bypass record
    Now runs 98% of the           company
      Lesson 8.4

Awards and Annual Events
              The Oscars
Most famous and prestigious award
Given by: Academy of Motion Picture Arts and Sciences
5,000 members determine each award
Nomination is a promotional bonanza for those involved
No more than ____nominations are made for each category
Winners featured on magazine covers, newspapers
Winning an award and getting a nomination have
promotional value money cannot buy
Have 2nd highest viewership after the ________________
Sunday night on ABC through 2008
In 1998 ABC charged $915,000 per ad minute
          The Grammys
National Academy of     Brings a lot of
Recording Arts and      attention
Sciences (NARS)         Does not guarantee
______ Categories       success or ________
Winners selected by     New artist categories
vote of the committee   are sometimes never
members                 heard from again
                        l   Examples????
The Emmys
   __ member organization
   Academy of Television
   Arts and Sciences
   l   Presents Primetime and
   Winning shows or stars
   can increase the
   _________ audience
               The Tonys
Named after Antoinette
l   Served as head of the
    Board of the American
    Theatre Wing
Given to professionals in
_______ for distinguished
Ratings up when
_____________ was host
        Lesson 8.5

Entertainment Marketing Careers
    Getting There From Here
Marketing You                   How to Prepare
l   You are the major           l   Conduct __________
    ___________                 l   Sources of info
l   Know what you want to            l   Internet
    do and what it takes to          l   People you know
    get the job                      l   Company reports
l   Gather info on the job to        l   Business directories
    make a decision                  l   College placement
l   Know what is _______
                                     l   Recent news articles
       Marketing Jobs
Opportunities for marketers, advertisers, and
public relations specialists will be among the
fastest growing in the nation through 2006
# of _____________ rises – the # of artists,
performers, and staged performances will
General background in these fields can urn
into a focus on _____________________
Marketing Relations Specialist
 Build and maintain positive relationships
 between their employer and the public
 Looks out for the best __________ of another
 Keep the media and consumers aware of the
 company or person they represent
 More opportunities in _______________
 College degree preferred combined with
 experience (Internship)
Marketing/Advertising Mgrs
            Intense ___________
            Potential to earn high
            Long _________
            Jobs dictated by
            consumer interest at the
            time (flexible)
             l   Strategic planning, sales,
                 advertising, pricing,
                 product development
        Skill Requirements
Math, communication,
interpersonal skills
Ability to communicate
persuasively orally and in writing
Ability to work on a __________

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