marketing entertainment

as a marketing professional you have:
print, network TV, cable, radio
rough gross revenue movies
18B
rough gross revenue home video
34B
rough gross revenue music
40B
rough gross revenue cable
73B
rough gross revenue TV
110B
rough gross revenue publishing
93B
rough gross revenue sports
140B
entertainment is the only US based industry
that has a trade surplus not a deficit
-Demand is highly uncertain
-products are differentiated on subjective data
-time is of the essence
-play crucial role in cultural trends and fashion around the globe
-distinct diffusion patterns
-unique products typically consumed only once
-Facing strategic challenges due to technology
how do creative industries differ from others?
how much in entertainment industry worth
1.7 trillion
4 key players
– talent
– content producers
– content retailers & distributors
– consumers
authors, actors, musicians athletes
talent
publishers, film and television studios, record labels, sports teams/leagues
content producers
Four Cs of entertainment
content
conduit
consumption
convergence
the actual entertainment product
content
the delivery of the product
conduit
the form in which the consumer actually makes use of the product
consumption
how do media and technologies come together
convergence
covers everything to produce the actual entertainment product
content
creative, copyright, production
the creative idea
technology
talent
perishability
cotent examples
process of delivery
the where and how
conduit
movie theatre
conduit example
point finished product is offered and consumed
consumption
the showing of a movie
example of consumption
ability to create, transmit, and capture all info digitally
convergence
watch on your iPad, cellphone, laptop
convergence examples
allowing someone else to use your copyrighted material
licensing
selling products/services based on your own copyrighted material
merchandising
lending your name to an event
sponsorship
huge risks on few concepts,
promote products before they are available

success breeds further success

blockbuster strategy
creative products are different
expensive to produce, inexpensive to reproduce
experience goods
tough to assess before consuming them
quality is in the eyes of the beholder
horizontally differentiated
fads vs. fashion
demand is difficult to predict
push strategy
wide release strategy
wide coverage and high advertising intensity drives sales

help recover high production costs quickly

can make a large difference in revenue

push strategy
1. Guarantees producers a steady stream of new material
2. Helps them retain top talent
3. Fosters internal champions
4. Increases external support from retailers & other channel partners
Why a Blockbuster Strategy?
Expenditures can reach proportions that threaten the overall viability of the project (what makes mgt more reliant on winners!)
risk of blockbuster strategy
are often relative rather than absolute
rewards
concentrated among few top performers
rewards
can be a sign of quality and credibility
involvement
tend to be loyal
consumers
fixed fee
bonus structure
percentage of sales or profits
compensation
Lowers production, transaction & search costs

Profound impact on creative industry

Lowers barriers to entry

Aggregators can bundle

Facilitates illegal distribution

Can “go direct” to consumer

Consumers can exchange / share experiences

Digital Technology
Information goods can be digitized & distributed almost without cost via digital channels

Creative goods are horizontally differentiated which complicates matching products to preferences

Amateurs seeking to produce and disseminate their own creations

digital technology profound impact on creative industry
It’s consumed with speed so little test marketing

Every film, CD , etc… is a new product with different content and audiences

Misfire films or hint of bad box office must be counteracted immediately

Huge budgets

Production is based all on creativity

Selling an experience

Is subject to same whims as fashion trends

Award shows can make or break a product

Competition from all forms of entertainment

Initial product and spin offs

How Does Entertainment Marketing Differ From Other Promotions?