Chapter 8 Entertainment Industry. Lesson 8.1 Entertainment Profits.

Chapter 8

Entertainment Industry

Lesson 8.1

Entertainment Profits

The Profit MakersOnly ____ of 7 major Hollywood studios turned profits in 1998, despite record audiences.Paramount Pictures (Viacom, Inc.) and 20th Century Fox Film Corporation were successful thanks to __________ ($1.8B tickets)Others suffered b/c of high cost of the ____________ and distribution

Cost Cutting StrategiesCut the # of _______ Release Movies Released in more than

________ theaters at 1 time

Low budget movies capitalize on the promotional budget of major movies by using similar __________ in the title

Profit and OpportunityProfit depends largely on the ___________ of the film overseasGenerating film revenue: Ratio of tickets sold

to the cost of production process

Income from:Merchandising _____________Relationships to

________ parksGlobal releasesTicket sales in the

U.S. and abroad

Cultural Profit OpportunitiesWorldwide distribution revenue is criticalFox sold nearly $2 B in movie ticket sales outside the U.S. 1998______________ release can increase receipts by 50 to 100%

Most films generate less than ______ of their final income from domestic ticket sales aloneThe 1.3 B people in _________ is a promising new potential audience

Fast MoneyThe difference between entertainment and sports is determined by the ______.___________ racing is one of the fastest growing forms of entertainment.Created a mutual fund to secure financing

for their expensive form of entertainment Investment stocks from 50 sponsor

companies are included Individual drivers have 1 sponsor who pays

for the car and the upkeep.

Lesson 8.2

Distribution of Entertainment

Ways to DistributeTraditional T.V. networks_________Satellite_________

Cable Mania# of cable channels has increased Programs are picked up by a master _________ and delivered to homes throughout the country_ time cost to install

__________ feeNew cable channels target specific demographic markets80% of American homes had cable hook-up

Satellite TelevisionAllows ______ areas to receive stationsMust buy a ___ ($130)Subscribe to monthly serviceOffering more than 200 channels40 M homes by 2007

Internet EntertainmentWeb based companies that markets sports info, interactive games, ____________, chat rooms and sports-related merchandise online_________________: selling merchandise on the InternetInternet is becoming most valuable place to advertise

Movie Marketing_________ or previews – advertisements for other moviesWell-coordinated promotional plan can wring out the last drop of consumer interest_______________ ads can also increase video rentals.Use suggestive selling

Effective Examples_______________Developed web

page that made it look like a real news story

Added short, intriguing trailers

Per-screen revenue was over $56,000

______________Bypassed theater

releaseSold directly o

rental and sales of video ($10 mil.)

See It At Home_________ sold at mass market retailers Wal-Mart

Stimulate sales in music and video specialty stores through Point-of-Purchase (_____) displaysMovies on DVD may replace videotapes

Lesson 8.3

Marketing Music and Theater

Today’s Top MusicHip-hop sales inc.Marketing Rap __________ –

inclusion on a CD of excerpts

Many music label executives use __________ to decide what is marketable

Mainstream Rap Madison Ave in NY is

home Singers and dancers

featured in TV ads. Changing to more

___________ messages

Promoting TheaterBroadway uses: billboards, radio, upscale theater magazines, and other publications____________ is major source of promotionFascination with the lights and the people

___________ is credited with increasing salesMetropolitan Opera of New York (The Met) Duke University course Gain knowledge and

appreciation for the arts

Distributing Music__________ Agent, promoter, and

artists manager “Wildcat” tours cut out

the agent Robert F.X. Sillerman

bought out most regional promoters. Now runs 98% of the concerts

____________ Mpeg Layer 3 – pirating

of music for free, illegally from the Internet

Free software program Still changing by finding

ways to bypass record company

Lesson 8.4

Awards and Annual Events

The OscarsMost famous and prestigious awardGiven by: Academy of Motion Picture Arts and Sciences5,000 members determine each awardNomination is a promotional bonanza for those involvedNo more than ____nominations are made for each categoryWinners featured on magazine covers, newspapersWinning an award and getting a nomination have promotional value money cannot buyHave 2nd highest viewership after the ________________Sunday night on ABC through 2008In 1998 ABC charged $915,000 per ad minute

The GrammysNational Academy of Recording Arts and Sciences (NARS)______ CategoriesWinners selected by vote of the committee members

Brings a lot of attentionDoes not guarantee success or ________New artist categories are sometimes never heard from again Examples????

The Emmys__ member organizationAcademy of Television Arts and SciencesPresents Primetime and

Daytime

Winning shows or stars can increase the _________ audience

The TonysNamed after Antoinette Perry Served as head of the

Board of the American Theatre Wing

Given to professionals in _______ for distinguished achievementRatings up when _____________ was host

Lesson 8.5

Entertainment Marketing Careers

Getting There From HereMarketing You You are the major

___________ Know what you want to

do and what it takes to get the job

Gather info on the job to make a decision

Know what is _______

How to Prepare Conduct __________ Sources of info

Internet People you know Company reports Business directories College placement

offices Recent news articles

Marketing JobsOpportunities 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 increaseGeneral background in these fields can urn into a focus on _____________________

Marketing Relations Specialist

Build and maintain positive relationships between their employer and the publicLooks out for the best __________ of anotherKeep the media and consumers aware of the company or person they representMore opportunities in _______________College degree preferred combined with experience (Internship)

Marketing/Advertising MgrsIntense ___________Potential to earn high salariesLong _________Jobs dictated by consumer interest at the time (flexible)Responsibilities Strategic planning, sales,

advertising, pricing, product development

Skill RequirementsMath, communication, interpersonal skillsAbility to communicate persuasively orally and in writingAbility to work on a ______________________InitiativeSelf-confidenceMaturityFlexibility