1. Distributing Entertainment

2. Modifying Channels Traditional Distribution Entertainment Distribution
Manufacturer Retailer Consumer
Producer Media Outlet Consumer

3. Before we move on… What is….. Direct Distribution
Indirect Distribution
Media

4. Distributing Entertainment
Entertainment distribution focused on…
Movies
Television

5. Distribution Channels in Entertainment
Entertainment is mainly distributed through media outlets
Traditional Networks
Cable
Satellite
Internet
Studios
Theaters
At Home channels

6. The Evolution of Network Television and Cable
In the early days of television, there were only 3 television network
ABC, CBS, NBC
Implementation of cable allowed consumers to choose from hundreds of channels
Gained popularity in 1980’s
Satellite and Digital Cable now offer wider selection on choices

7. Cable Mania Cable offers Premium Channels
Originally very limited
Has grown through…
Digital cable
HD is the future—eventually all channels will be HD
Cable offers Premium Channels
HBO, Show Time, Starz
New cable programs introduced at the Western Cable Show each December in Anaheim, California
This trade show helps get new shows into local cable channel packages

8. The Success of Cable as a Media Outlet
Cable channels use specific shows to target demographic markets
While a lot of people still watch network TV, cable TV has many more viewers.
Cable channels can be targeted to specific markets, allowing them to get advertisers for those specific markets –
Lifetime – women’s products
ESPN – sports enthusiast products
Food Network – Cooks

9. Internet Entertainment Media
Internet entertainment has grown dramatically over the last decade.
Types of Internet entertainment:
Social Media
Internet TV
Hulu
Movies
Netflix
Music, Books
iTunes

10. Movie Distribution
Trailers or Previews – Advertisements for other movies shown on-screen in movie theaters or on videos sold for home viewing utilizing internet media
The movie industry is suffering from a shift in traditional distribution outlets
many people aren’t going to theaters any more – they wait for the movies to come out on DVD or Blu-Ray
Trends-
Smaller movies just go straight to DVD
Big movies available in 3D at higher price

11. Mega Distribution: Vertical
Vertical Integration
In this system there were 8 major media conglomerates (referred to a “Big Media”) that controlled most of the entertainment media and news media in America
Goal: to streamline and keep profits in company
The idea was for one company to own all levels from books, to TV networks, to movie production, to news outlets, to theme parks
Example: Disney
Broadcast Web
Groups of television networks, production studios, and related entertainment firms that produce shows in-house for their group

12. Mega Distribution
Disney owned everything and controlled everything from the books about their shows and movies
Golden Books
Disney Channel
Disney Pictures
ABC Channels
Disney Theme Parks

13. Mega Distribution: Horizontal
Two or more organizations at the same level join together for distribution/marketing purposes to capitalize on a new opportunity
“Mergers”

14. Mega Distribution
Disney Horizontal Integration

15. Who really controls distribution?
THE BIG 6!

17. The Down Side to Mega Distribution
Integration was a popular idea in the early 2000’s,
Many integrated media conglomerates failed and have now divested themselves of the various media
Hard to control quality and operations

18. Using Retailers to Distribute
Most “Home Entertainment” products are sold through retailers
Brick and Mortar
E-Commerce
Mostly Consists of
DVD’s and Blu-Ray Discs
To help stimulate sales the production company often provides the retailer with a point of purchase display

19. DECA Role Play Groups of 3!
You will work with your group members to come up with a distribution solution for the problem
Get creative!
Carefully follow instructions on handout
The last 20 minutes of class we will present our ideas
Winners get a prize!

20. Distributing Sports

21. Distributing Sports Distributing professional sports through
Media
Stadiums
Professional Sports have a special situation…they are cartels!

22. Distributing the Game
Individual teams within a professional league are separately operated businesses, but they are not in competition with each other as they would be in a free open market
Each team is a member of a cartel
A cartel is a combination of independent businesses formed to regulate production, pricing, and marketing of a product

23. Distributing the Game
The professional leagues (NFL, NBA, MLB, NHL) are all sports cartels
Pro leagues are independent sports teams grouped together and governed by a league agreement
The league controls the marketing mix of the team – including distribution

24. Stadium as Place
Regions with a large potential customer base are considered favorable for a team
Owners try to get public funds to subsidize the team
Distribute more than the game
Entertainment
Community Events

25. Media Outlets for Sports
Traditionally distributed through network TV and cable stations
The biggest profit center is television revenue
TV revenue is generated through the sale of advertising time
TBS & CBS have just made a deal with the NBA for rights for the next 15 years

26. Vertical Integration in Sports
Sports teams vertically integrate by owning all levels
Minor league teams
Major league teams
Groups own different teams-
Atlanta Spirit – runs Phillips Arena
Manages Hawks & Thrashers
Manages Entertainment Events

27. Braves Role Play
The new SunTrust Park in Cobb County is looking to distribute innovative entertainment events through their new facility
Groups of 3!
We will present our presentations at the end of class
Winners get a prize!
Remember: THIS IS FOR A GRADE 