Brad Berens Executive Editor iMedia Communications, Inc. Changes in the Marketing Mix

Celebrity Equations

Jim Carrey Ben Stiller - =

Christina Aguilera Erik Estrada + =

Mick Jagger James Brown - =

Part 1 The audience is changing…

1995: Estimated Movie Tickets Sold 1Toy Story50.2 million 2Batman Forever39.8 million 3Apollo million Top 3 Movies Sources: Nielsen EDI, Box Office Reports and Exhibitor Relations

2000: Estimated Movie Tickets Sold 1How the Grinch Stole Christmas50.3 million 2Cast Away43 million 3Mission Impossible million Top 3 Movies Sources: Nielsen EDI, Box Office Reports and Exhibitor Relations Modest growth…

2004: Estimated Movie Tickets Sold 1Shrek million 2Spider-Man million 3Passion of the Christ53.7 million Top 3 Movies Sources: Nielsen EDI, Box Office Reports and Exhibitor Relations Things look GOOD for ticket sales, but…

No 'Passion,' no problem? The summer of mixed messages U.S. Box Office Hits Longest Modern Slump 'Batman' Can't Begin to Rescue Film Industry

CNN did an online poll Friday, asking what movie people were most likely to see over the weekend. The new films "Herbie," "Bewitched" and "Land of the Dead" received 27% of the vote. The landslide winner, with 73%, was "None, I'd rather rent a DVD of something good." Patrick Goldstein, Times Staff Writer June 28, 2005

Home Video: DVD Unit Sales YearFilm Title Units Sold (millions) Gross Revenue (millions) 2005 (YTD)The Incredibles14.01$ Shrek 218.2$ Finding Nemo18.5$ Spider-Man12.2$ Shrek8$ Gladiator3.4$63.1 Source: LeesMovieInfo.net Does not count rentals.

A VHS aside… YearFilm TitleUnits Sold (millions)Gross Revenue (millions) 2004Shrek 22$ Finding Nemo3.71$ Monsters, Inc.9.2$ Shrek13.9$ Tarzan10.5$210 The DVD market is bigger than the VHS ever was. Source: LeesMovieInfo.net

#1 TV Show: A Gradual Decline Seinfeld ,330, Who Wants to be a Millionaire?291128,533, CSI ,308,000 ShareSeason%Viewers Source: Nielsen Media Research

#5 TV Show: Even Worse... ShareSeason%Viewers Monday Night Football ,420, Friends ,950, CSI: Miami ,881,000 Source: Nielsen Media Research One word to describe this?

Oy.

Implications… Your audience is fragmenting They go where they want, when they want We’re not talking enough about Games Mass culture is a lot less massive (but it hasn’t been around all that long anyway)

Part 2 Show me the money!

Nearly all advertisers are spending more But more $$$ do not equal more audience You’re paying more for less And this does NOT include DVRs and SIMM Who is spending what?

Let’s zoom in…

After 2002, entertainment companies did not embrace online with enthusiasm…

Who is missing?

And, this just came in yesterday…

Network TV growth had already slowed down in Q1, and then…

Ad Icon P&G Cuts Commitment To TV Commercials P&G to reduce "upfront" TV spending P&G sharply cuts commitment to TV ads Remember: P&G is the USA’s biggest advertiser. June 13, 2005

So why did P&G make the change? TiVo and other DVRs Internet and Games Increased investment in PPP Generally, a move away from…

"Spray and pray." Wenda Harris Millard Chief of Sales Yahoo!

Although the budgets are miniscule compared to TV and newspapers, the big growth areas for marketing are more targeted. And topping the list…

Part 3 Online: what the fuss is about (I’ve shown you this next slide before…)

So why -- and how -- are most advertisers spending money online?

WHY

The Big Question Should entertainment marketers follow the rest of marketers and invest more online? Answer: Yes. That’s where your consumer is.

Part 4 Entertainment Consumers & the Internet

Leading provider of marketing research for the entertainment industry Known for innovation in consumer understanding (See press pages for insight on Star Wars Episode III: Revenge of the Sith!)

Entertainment marketers have the opportunity to reach almost 60 Million consumers per month via the Internet! Source: comScore Media Metrix 40 to 60 Million U.S. Consumers Visit Movie Sites Every Month!

In March ' 05, 1 of every 2 Internet users visited a music site; and 1 of every 3 visited a movies site! Source: comScore Media Metrix Strong Growth Year-to-Year

Movie Site Visitors* Can Be Hard to Reach Through Traditional Media 31% to 34% are " light " TV viewers Source: AiM, by comScore Media Metrix *Visitors of Yahoo! Movies, Moviefone, or IMDB.com

Movie Site Visitors* Can Be Hard to Reach Through Traditional Media 31% to 34% are " light " TV viewers 28% to 30% claim they don’t listen to the Radio, or listen rarely Source: AiM, by comScore Media Metrix *Visitors of Yahoo! Movies, Moviefone, or IMDB.com

Movie Site Visitors* Can Be Hard to Reach Through Traditional Media 31% to 34% are " light " TV viewers 28% to 30% claim they don’t listen to the Radio, or listen rarely 59% to 65% have computers in the same room as their TV… and use them while they’re watching! Source: AiM, by comScore Media Metrix *Visitors of Yahoo! Movies, Moviefone, or IMDB.com = SIMM

Sales of event & movie tickets on the Internet shows continued growth Source: comScore eCommerce Insights Includes delivery of physical products, does NOT include streamed content

Consumers have proven that they want streamed content over the Internet … *Includes both streamed content and progressive downloads. Source: comScore Streaming Report

Particularly entertainment content, which was the fastest growing of all online paid content categories in 2004 Source: comScore / OPA Online Paid Content Report – 2005 Release Percent Change in Paid Content by Category (2004 vs. 2003)

Consumers like streamed content Millions of consumers are watching online trailers, listening to music online, and downloading clips and movies every month. Even smaller sites can have very loyal viewers -- the average viewer on iFilm Network streamed over 20 times in the last month! Source: comScore Streaming Report – February 2005

When Showtime provided a webcast of the " Fat Actress " Pilot on Yahoo!, over 15% of the total viewing audience " tuned in " Source: comScore Streaming Report

Internet portals remain the primary source for consumer information about listings, reviews, and show times Source: comScore Media Metrix; February 2005

Search marketing: movie sites vary in their use of the major search engines Source: comScore Media Metrix; February 2005

The Internet: a great way to reach the emerging digital media services market People who use devices like Microsoft’s Media Center and Dell’s Media Experience use the Internet significantly more than other consumers. Also, 89% use Broadband making them an obvious target for online movie trailers, etc. They skew towards higher income, and larger households (5+) with parents aged years old and teen-aged kids. Source: comScore Marketing Solutions; March 2005

Digital media services users are avid Internet entertainment consumers People who use devices like Microsoft’s Media Center and Dell’s Media Experience are significantly more likely to visit entertainment-oriented websites than the average Internet consumer. Source: comScore Marketing Solutions; March 2005

Conclusions Entertainment consumers are a moving target, but they are engaged with and passionate about your products Entertainment marketers need to catch up with these consumers Integrated marketing is the way to go As mobile computing and wireless entertainment spread -- enabling consumers to move even FASTER -- integration will become even more important

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