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Entertainment Industry Sports and Entertainment Marketing.

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Presentation on theme: "Entertainment Industry Sports and Entertainment Marketing."— Presentation transcript:

1 Entertainment Industry Sports and Entertainment Marketing

2 The industry The global entertainment and media industry will be worth $1.8 trillion by 2010, and $2 trillion by 2011

3 At the Theatre Movie theaters sold an estimated $10.37 billion worth of tickets in 2014. This year so far ticket sales are at $9.84 billion with 7 months to go.

4 Digital vs. DVD Digital movie purchases surged 47% last year to $1.19 billion a category that includes both DVDs and high-definition Blu-ray discs—dropped 8% to $7.78 billion. DVD rental subscriptions, the category that Netflix Inc. pioneered, dropped 19% to $1.02 billion, while rentals at stores fell 14% to $1.04 billion. Subscriptions for movie streaming, a category dominated by Netflix, remained increasingly popular, though, with revenue up 32% to $3.16 billion.

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6 Movies The top grossing movie so far in 2015 has been Avengers: Age of Ultron, selling over $392 million dollars and over 48 million tickets

7 Music In 2012, for the first time ever, U.S. digital music sales are expected to surpass sales of CDs and vinyl albums. It was by the narrowest of margins, but according to Boston- based Strategy Analytics Inc., digital sales are expected to reach $3.4 billion this year, while CD sales are only expected to reach$3.38 billion. This trend is likely to continue, as digital sales are expected to set the global benchmark by 2015.

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9 CD’s are still the most profitable CD sales are a much more profitable avenue for most artists. Independent musicians can produce and sell their own CDs and keep all the profits.

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11 Streaming Streaming is expected to soon be the most popular way for consumers to acquire music tracks. Consumers pay a monthly fee and have unlimited access to any songs they want to listen to. However, music on programs such as Spotify, Rhapsody, or Pandora results in less revenue for a musician than downloads. A survey done by the Future of Music Coalition reported that musicians aren't seeing any money from streaming or it's such a small amount that it almost doesn't count in their yearly profits.

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13 Downloads  The Cynical Musician breaks it down in terms of U.S. minimum wage, currently $7.25. Based on a 40-hour work week and four weeks in a month, the monthly earnings for a minimum-wage employee would equal $1,160. The same amount of income would require 1,813 downloads per month on iTunes. Justin Bieber's song "Boyfriend," for instance, is the fourth best- selling download of all time. His record label collected $390,000, iTunes received $200,000, and Justin earned $83,000 from downloads of the song.

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15 Touring Touring can be exhausting for musicians but has proven to offer the biggest bang for the buck in terms of artist revenue. Record labels have started forming "360 deals" with new artists, allowing them to take a percentage of concert revenue, merchandise sales and endorsement deals - items which used to be off limits to them. The label is typically more invested in the artist in this case, and therefore more inclined to offer support to the artist in all career aspects.

16 Touring For instance, John Mayer selling 15,000 concert tickets at $50 each will result in $750,000 in ticket revenue, guaranteeing him $200,000 to $300,000. Most artists make an average of three to four dollars per head in merchandise sales at concerts, adding another $60,000. If he sells out, he will also get a 50/50 split on the back end. So Mayer could potentially make $560,000 just in one night.

17 Music http://www.rollingstone.co m/music/news/the-new- economics-of-the-music- industry-20111025 http://www.rollingstone.co m/music/news/the-new- economics-of-the-music- industry-20111025

18 Subscription services If a song gets streamed 60 times, the songwriter receives 9.1 cents in mechanical royalty payments. And the performing artist gets 38 cents

19 Album costs It costs an artist $10 (for a single) and $50 (album) to place music in online stores such as iTunes and Amazon, as well as subscription services like Spotify and MOG

20 ITunes It costs $1.29 for a single in Itunes. Apple, as the retailer, keeps 30 percent, or roughly 40 cents. The rest (90 cents) goes to the record label Recording artist get 12-20 % of the total sales. So the artist's cut for sale of the master recording is about 20 cents.

21 Youtube a top artist might make $1 per 1,000 video plays 1 million views would get the artist how much money?

22 Internet Radio The rates go up every year, but the broad formula is that big "pure play" companies, such as Pandora and Slacker, pay either 25 percent of their total revenue per year, or a little more than $.001 per song

23 CD’s The retailer takes out about 30 percent of the suggested $17.98 price, or $5.40. From what's left, the songwriter and publishing company remove another 91 cents for 10 songs. That leaves about $11.67. From that, the artist receives 12 to 20 percent. On the high end 20% of $11.67 is about $2.20 which goes to the artist.

24 CD’s Continued In the end, in very broad terms, that leaves about $1.93 per sale in profit for the artist and $9.74 for the label

25 TV TV Earns 300 billion annually. Time Warner, Disney, Viacom/CBS, NBC-Universal, News Corp. and Sony - wield an unrivalled position of power and control in the market.

26 A changing industry HBO just launched HBO Now, which is much like Netflix. It's an internet-based, on-demand streaming service that costs $14.99 per month. Hulu is another internet-based streaming video service. Amazon offers video streaming with Prime Instant Video. CBS has its own video streaming app. Sports leagues are offering their own video streaming apps as well. And then there's Dish, which has Sling TV, a $20- per-month streaming service that offers up a limited but good bundle of channels. Apple is also reportedly planning to launch a streaming video service to replace traditional linear TV this fall. And then there's Dish, which has Sling TV, a $20- per-month streaming service that offers up a limited but good bundle of channels. Apple is also reportedly planning to launch a streaming video service to replace traditional linear TV this fall. Read more: http://www.businessinsider.com/netflix-ceo-on- the-tv-industry-2015-4#ixzz3bBxbmwn6

27 Sling TV https://www.sling.com/pac kage https://www.sling.com/pac kage

28 Netflix by the numbers http://www.statista.com/st atistics/250934/quarterly- number-of-netflix- streaming-subscribers- worldwide/ http://www.statista.com/st atistics/250934/quarterly- number-of-netflix- streaming-subscribers- worldwide/

29 Netflix Profits The company's profit rose to $71 million from $29.5 million Netflix has over 60 million users

30 The cable cutters Today about 19% of American TV households live without cable

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32 Connected TV By 2017 there will be 204 million connected TV devices linked to the Internet and able to deliver apps to viewers It is projected to increase from 60 percent in 2014 to 76 percent of installed units by 2017.

33 Connected TV By 2018 the connected TV device market will begin to reach saturation. The average U.S. home has three TVs, and by 2018 a majority of homes that want apps on their TV will have a connected device on their primary and secondary displays.

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