© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 1 CHAPTER 8 CHAPTER 8 Entertainment Industry Entertainment Profits Distribution Off Entertainment Marketing Music and Theater Awards and Annual Events Entertainment Marketing Careers

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 2 LESSON 8.1 LESSON 8.1 Entertainment Profits GOALS Explain financial strategies in the motion picture industry. Calculate film revenue, and discuss the importance of foreign markets for movies. Describe financing in auto racing.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 3 The Profit Makers Movie ticket sales Studio earnings Production Marketing

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 4 Is Big Best? Spreading economic risk Partnerships to help produce, promote, and distribute films Promotional opportunities

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 5 Cost-Cutting Strategies Control release to control distribution costs Wide release—a movie released in more than 2,000 theaters at one time Preview—the release of a movie the evening before its official opening Matinees—pre-evening shows, generally have less audience and lower-priced tickets Low-budget movies—generally costing less than $250,000 to produce

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 6 Profit and Opportunity Generating film revenue Cultural opportunities for profits

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 7 Generating Film Revenue Ratio of tickets sold to the cost of production Income Domestic and foreign ticket sales Licensed merchandise Soundtracks Relationships to theme parks

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 8 Cultural Opportunities for Profits Significance of worldwide distribution revenue Economic, political, and cultural barriers

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 9 Fast Money— Stock Car Racing Entertainment or sport Financing Mutual fund Variation on the traditional sponsorship style Nontobacco sponsors

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 10 LESSON 8.2 LESSON 8.2 Distribution of Entertainment GOALS Understand the different kinds of entertainment distribution. Discuss promotional strategies for motion pictures.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 11 Distribution of Home Entertainment Broadcast Cable Satellite Internet

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 12 Cable Mania Number of cable channels Delivery system and cost Programming Availability Competition

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 13 Digital Delirium High-definition television (HDTV) Memorandum of Understanding (MOU)

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 14 Satellite Television Rural areas In-vehicle multimedia Far-away fans

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 15 Mega-Distribution Broadcast webs—groups of television networks, production studios, and related entertainment firms that produce shows inhouse for their group Vertical integration—one company controls several different areas in the same industry

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 16 Movie Marketing Trailers—advertisements for other movies and for related music and merchandise Pay-per-view promotions Web sites

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 17 See It at Home Format DVDs Videotape Purchase Mass market retailers Music and video specialty stores Online Rentals Music and video specialty stores Online businesses with delivery via mail

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 18 LESSON 8.3 LESSON 8.3 Marketing Music and Theater GOALS Understand the distribution of music. Discuss the legalities of music distribution. Explain two kinds of theater promotion.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 19 Today’s Music Technology changes Marketing changes Distribution changes

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 20 Digital Music Marketing TV channels Audio channels Downloads

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 21 One Tune for All—Radio Growing business Deregulated media ownership ClearChannel Communications

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 22 Distributing Music Concerts MP3

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 23 Concerts Prior to 1994 Traditional tours “Wildcat tours” SFX Vertically integrated corporation 98 percent of major concerts

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 24 Concert Tickets Major source of revenue for musical artists Pre-sales

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 25 MP3 Online music swapping Pirating done with free software program—MP3 (Mpeg Layer 3) Recording Industry Association of America (RIAA) Using software to trace online music swappers Suing computer owners

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 26 Promoting Theater— Broadway Traditional promotional strategies Billboards Radio Television Magazines Other promotional avenues Let me tell you about... Do I get a grade for this?

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 27 LESSON8.4 LESSON 8.4 Awards and Annual Events GOALS Explain the promotional value of entertainment awards. Discuss ways in which entertainment is distributed.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 28 Awards Influence Sales The Oscars The Grammys The Emmys The Tonys

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 29 The Oscars Academy of Motion Picture Arts and Sciences Academy Award also known as the Oscar Pre-award publicity Advertising films through trade publications and the talk-show circuit

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 30 The Grammys National Academy of Recording Arts and Sciences (NARAS) Attracts much attention to a musician

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 31 The Emmys Academy of Television Arts and Sciences presents the Primetime Emmy National Academy of Television Arts and Sciences presents awards for daytime television, sports programming, news cases, and documentary programming

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 32 The Tonys Named after Antoinette Perry, who served as head of the Board of the American Theater Wing Given to professionals in theater for distinguished achievement

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 33 To Market, To Market Trade events Focus on businesses that are related ShoWest—example of trade show

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 34 Digital Distribution Digital projector Digitized movies Distributed via satellite, fiber optics cables, special disks, or the Internet Concurrent showings

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 35 Seasonal or Theme Events Centered in geographic areas Market directly to people who will attend them

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 36 LESSON 8.5 LESSON 8.5 Entertainment Marketing Careers GOALS Discuss the preparation needed for a career in the entertainment marketing field. Comprehend the skills needed for specific jobs in entertainment marketing.

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 37 Getting There From Here Breaking into entertainment marketing Room for top people

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 38 Marketing You Knowing what you do Gather information Having required skills is a must

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 39 How to Prepare Research jobs Learn about companies Sources of information Internet People Annual reports Directories College placement centers News article and trade publications

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 40 Marketing Jobs Public relations specialists Build and maintain positive relationships between their employers and the public Best opportunities are in larger cities Marketing and advertising managers Drives the creative development of the company’s public messages about its products Must be creative and organized to manage many projects and people

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 41 Skill Requirements Skills most desired by employers Math Communications Interpersonal skills

© SOUTH-WESTERN/THOMSON SPORTS AND ENTERTAINMENT MARKETING CHAPTER 8SLIDE 42 Skill Requirements Other needed skills Creativity Initiative Good judgment Problem-solving/ research skills Outgoing personality/ self-confidence Understanding of human psychology Enthusiasm for motivating people Maturity Resistance to stress Flexibility Decisiveness