CHAPTER 10: THE ENTERTAINMENT MARKET

I. THAT’S ENTERTAINMENT ENTERTAINMENT DATES BACK 2,500 YEARS AGO W/ ROMAN GLADIATORS AND PLAYS PERFORMED IN GREECE 12 TH CENTURY W/ CHINESE OPERAS 1500’S W/ SHAKESPEARE’S PLAYS FOR CENTURIES, DANCE IN AFRICA HAS BEEN A RICH FORM OF ENTRTMT

II. ENTERTAINMENT TODAY PEOPLE SPEND 3 HRS A DAY W/ TV 98% OF HOMES HAVE MORE THAN 1 FILMS CONCERTS VIDEO GAMES SPORTS THEME PARKS

A. MEDIA AND ENTERTAINMENT MEDIA IS THE METHOD USED FOR TRANSMITTING INFORMATION, WHICH CAN BE THE FORM OF ENTERTAINMENT OR HOW THE ENTERTAINMENT IS DELIVERED

B. ENTERTAINMENT MARKETING JOBS DISNEY, SONY, UNIVERSAL, NBC.. ALL OFFER HUNDREDS VARIOUS ENTERTAINMENT JOBS W/I THEIR COMPANIES.

III. THE INFLUENCE OF ENTERTAINMENT MANY PRODUCTS AND SERVICES INFLUENCED BY ENTERTAINERS/MENT BECOME FADS ITALIAN JOB-MINI COOPERS FASHION-ENTERTAINER OWN LINES PHRASES-FROM MOVIES

IV. ECONOMICS OF ENTERTAINMENT ENTERTAINMENT IS IN THE TOP 10 OF THE HIGHEST GROSSING SEGMENTS OF THE ECONOMY. IT INFLUENCES AND IMPACTS MANY OTHER AREAS OF THE ECONOMY: HANES - MICHAEL JORDAN GAP - MADONNA COKE/SPRITE – LEBRON JAMES

A. ENTERTAINMENT AND CONSUMER SPENDING ENT MARKETING RELIES ON MEETING THE CONSUMER DEMAND FOR EXCITEMENT AT A PRICE THE CUSTOMER IS WILLING TO PAY (TELEVISION VS. THEME PARKS)

B. SHOPPING FOR ENTERTAINMENT THE SPORTS AND ENTERTAINMENT INDUSTRY THRIVE ON GETTING PEOPLE TO SPEND THEIR DISCRETIONARY INCOME

C. MERCHANDISING AND ENTERTAINMENT MERCHANDISING IS A LARGE PART OF THE ENTMNT INDUSTRY (STARS SELL PRODUCTS AND PRODUCTS SELL STARS)-MCDONALD’S/BK AND FILMS

V. INTERNATIONAL ENTERTAINMENT ENTERTAINMENT IS LARGEST INTERNATIONAL EXPORT AFTER AGR. ENTERTAINMENT GENERATES REVENUE GLOBALLY FOR LEISURE TIME STARS WILL APPEAR IN COMMERCIALS IN OTHER COUNTRIES-TOM CRUISE, SLY STALLONE, BRAD PITT

A. MOVIES MULTI BILLION $ OPERATION. TODAY MAJOR FILMS COST $90 TO PRODUCE AND $40 MILLION TO MARKET. 4 OUT OF 10 WILL NOT BREAK EVEN GREENLIGHT

MAJOR MOTION PICTURES INDIES-BLAIR WITCH REVENUE BREAKDOWN FOR MOVIES -26% THEATRICAL RECEIPTS -28% TV SALES -46% VIDEO/DVD SALES & RENTALS

B. THEME PARKS- -HISTORY-1 ST IN EUROPE IN THE U.S.-$5.5 BIL WATER PARKS-$450 MIL -NEED TO HAVE SOME THEME -SAFETY ISSUES HAVE RISEN

C. TELEVISION- -#1 FORM OF ENTERTAINMENT W/ ADULTS 3 HRS, TEENS 4-6, CHILD 4 -RATINGS MAKE OR BREAK TV -COMMERCIALS HELP FINANCE NIELSEN RATINGS

D. RADIO- -THEY CAN BE INDEPENDENT OR NATIONAL -RELY ON ADVERTISERS AND SPONSORS -PRIME-TIME IS MORNING DRIVE -LOW RATINGS CANCEL SHOWS

E. MUSIC INDUSTRY- -RELIES ON COMPANIES TO SIGN ARTISTS AND PRODUCE AND RELEASE ALBUMS -MUSICIANS WHO ARE SUCCESSFUL ABSORB THE COSTS OF THOSE NOT

-MUSIC AND TV COMBINED IN THE 1980’S W/ MTV- WHAT WAS THE SONG? -THIS BEGAN MUSIC VIDEOS -MUSIC AUTHORS RECEIVE ROYALITIES -MUSIC VS. INTERNET AND PIRATING -LIVE PERFORMANCES

F. PERFORMING ARTS- VERY CENTRALIZED – PRODUCER PICKS PLAY, CAST, MUSIC AND VENUE. CAN BE FINANCED BY MAJOR COMPANIES (DISNEY) -BROADWAY -OPERA

G. INTERNET AND COMPUTERS TEENS SPEND MORE TIME ON COMPUTERS THAN WATCHING TV. (THIS TREND IS GOING MOBILE) -SPAM -ADS -POP-UPS

GAMES: -1 ST GAME - PINBALL & SHOOTING -1 ST INTERACTIVE – SPACEWAR (1962) -NOW IT IS A VERY COMPETITIVE MARKET (GAMEBOY, XBOX, PLAYSTATIONS)-$7 BIL ANNUALLY