Entertainment Marketing

1
Unit 4

• Entertainment Marketing
• Finally!

2
Lesson 1 Overview History

• Think about your week.......
• What have your spent money on?

3
Entertainment

• 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

4
Statistics

• "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

5
Two 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

6
market 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.

7
Marketing 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

8
So what are some benefits of marketing
entertainment to a small audience (Boomers) than
to the masses?
9
What 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



10
What 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

11
Theater

• 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?

12
Theater

• 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!

13
Marketing 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

14
Music

• 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

15
Music 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?

16
Todays 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

17
Distributing 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

18
Money 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)

19
Film

• What can you remember about the history of films?

20
Film 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

21
Marketing 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

22
Why would a movie be released directly to video
rather than a movie theater first?
23
No 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!)

24
The 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)

25
Top 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)

26
8 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

27
The Big Eye in Every Room

• TV

28
Television

• 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)

29
History 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)

30
Timeline 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)

31
How 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.

32
Satellite 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?

33
Entertainment 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?

34
Internet
6

• Been around since the 1960s (for government
  purposes originally)
• Grew in 1970s with Universities
• MAJOR ISSUE with the INTERNET?

35
Internet 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.

36
Amazing 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

37
Internet 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)

38
Profits and Distribution
4

• Lesson 2

39
The 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!

40
Trailers 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.

41
Large 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.

42
How 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.?
43
Profit 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

44
Big 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)
46
Is 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

47
Why would a movie be released directly to video
rather than a wide release (2000 theaters or
more) first?
48
So 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?

49
Walt 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

50
Marketing Entertainment Today
Lesson 3
51
Global 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

52
Awards 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)

53
AwardsSales

• Simply being NOMINATED is all it takes

54
Oscars

• 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.

55
The 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?

57
The 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?

59
Marketing Recreation

• Lesson 4

60
Recreation

• 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.

61
Recreational 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

62
Lets look at the Opening Act

• on page 19

63
Travel 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!

64
3 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?

65
Travel 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)

66
The 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

67
Theme 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

68
Theme 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

69
Resorts

• Aimed at adults
• Focus on a single or small number of sports

70
Have 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

71
The End..