Entertainment Industry

1
Entertainment Industry

• Read opening act page 166

2
Low Budget Movies

• Does a low budget movie always mean a bad movie?

400,000 to produce, Grossed over 45 million
320,000 - 1978
50,000 - 1999
27,500 - 1994
3
Major Movie Studios

• MPAA Motion Picture Association of America
  represents the seven major Hollywood movie
  studios
• Walt Disney Co., 20th Century Fox,
  Metro-Goldwyn-Mayer, Viacom's Paramount Pictures,
  Sony Pictures Entertainment, Universal Pictures
  and Warner Bros.,

4
Revenue Studios
1998 Only two of the seven major studios made
profits. Remaining five studios suffered due to
continuing high costs of the production and
distribution of movies
5
Entertainment Profits (8.1)

• Major Movie Studios
• Paramount Pictures
• Twentieth Century Fox
• Titanic
• First Movie to earn more than 600 Million
• Ran in First Run Theatres until DVD was released
• Over 1 Million sold in first week

6
Cost Cutting

• Movie Studios limit the number of Wide Release
  Films
• Wide Release means being shown in 2,000 Theatres
• Limit promotional spending
• Blair With Project- Word of Mouth promotion
• Cost 500,000 to make
• Grossed over 500 Million
• Independent Film
• Movie made with out the backing of one of the
  major movie studios

7
Generating Film Revenue

• Ratio of tickets sold to the cost of production
• Income from merchandising soundtracks
• Relationships to theme parks
• Global Releases

8
Generating Film Revenue

• Studios are distributing more films worldwide
• Most films only generate 25 of revenue from US
  ticket sales
• Some countries do not allow US films to be shown
• Religious conflicts
• US imports very few foreign films

9
Top Grossing Movies 2004

• 436,471,036 Shrek 2 (2004)
• 373,377,893 Spider-Man 2 (2004)
• 370,614,210 The Passion of theChrist(2004)
• 279,167,575 Meet the Fockers (2004)
• 261,437,578 The Incredibles (2004)
• 249,358,727 Harry Potter the Prisoner of
  Azkaban
• 186,739,919 The Day After Tomorrow (2004)
• 176,049,130 The Bourne Supremacy (2004)
• 172,975,674 National Treasure (2004)
• 162,753,127 The Polar Express (2004)

10
Independent Films

• Dukes of Hazard
• Harry Potter
• A Walk to Remember
• Mean Girls
• Notebook
• March of the Penguins

11
Read Page 168 Cultural Opportunities for Profits

• List advantages and disadvantages of having
  access to the 1.3 bullion people in China as a
  movie market.

12
Opening Act Page 171

• List advantages and disadvantages of watching a
  movie over the internet and on television.

13
Trailers

• Chicken Little -- The Official Movie Website
• March of the Penguins

14
Distribution of Entertainment

• Cable Television
• Homeowners subscribe
• Picked up through master antenna and then
  delivered to homes through cables
• Satellite Television
• Buy the dish
• Subscription
• 40 Million households by 2007

15
Internet Entertainment

• Selling through the internet is called e-commerce
• 1/5 of all internet subscribers purchase products
  through the internet

16
Distribution of Entertainment

• Mega Distribution
• Broadcast web affiliations of television
  networks, production studios and related
  entertainment firms produce shows in-house for
  their group
• Vertical Integration One company controls
  several different companies
• AOL Time Warner
• Lycos USA Network

17
Movie Marketing

• Trailers
• Critical to attracting customers
• Small amount of time lot of consideration
• Promotional Plan
• Blair Witch Project web page that made the
  story look like a real news story
• Disney Movies going straight to video/DVD instead
  of going to the theaters.

18
The Arts Concerts, Music, Theater

• 2004 Biggest Musician Money Makers
• Prince - 56 Million
• Madonna
• Metallica
• Elton John
• Jimmy Buffet

19
Music Industry

• Sampling inclusion on a CD of excerpts from the
  music of other artists.
• Where else do we see sampling?

20
Promoting Theater

• Advertising on Billboards
• Radio
• Television
• Upscale Theater Magazines
• WORD OF MOUTH

21
Theater
22
Distributing Music

• Concerts
• MP3 Players
• Clear Channel bought out SFX in 2000
• Motocross
• Promotes most of the worlds large concerts
  music festivals
• More involved with theater each year
• SFX Sports represents 500 elite athletes, talent
  management and marketing agency

23
Awards Annual Events

• Oscars
• Most famous prestigious of the entertainment
  awards
• Given By the Academy of Motion Picture Arts and
  Sciences
• 5,000 members determine each Academy Award
• ABC - 1 Million to put an advertisement on
  during the Oscars

24
Grammy

• National Academy of Recording Arts and Sciences
  (NARAS) 13000 musicians, producers, and other
  recording professionals.
• 92 Categories
• Does not always mean that the album or artist
  will be a success.

25
Emmys

• Academy of Television Arts and Sciences
• Day Nightime Television
• Significant attention to the television show

26
Tonys

• Named after Antoinette Perry
• Served as head of the Board of the American
  Theatre Wing
• Professionals in Theater for distinguished
  achievement

27
Trade Events

• ShoWest the worlds largest annual gathering of
  motion picture industry professionals.
• Awards Show
• Soon to be..