DISTRIBUTION OF DISTRIBUTION OF ENTERTAINMENTENTERTAINMENT

Chapter 8Chapter 8

Lesson 8.2Lesson 8.2

JUDGMENT CALLJUDGMENT CALL

What is a V-chip?What is a V-chip?Go to fcc.gov/vchipGo to fcc.gov/vchipThink of two shows that fit into each Think of two shows that fit into each

categorycategory

DISTRIBUTION OF DISTRIBUTION OF ENTERTAINMENTENTERTAINMENT

Early daysEarly days3 television networks3 television networks

NowNowCableCableSatelliteSatelliteInternetInternet

CABLE MANIACABLE MANIA

Original cable channel space was Original cable channel space was limitedlimitedTechnology allowed more channels to be Technology allowed more channels to be

addedaddedCable television programs picked up Cable television programs picked up

by master antennaby master antennaDelivered to homes through cablesDelivered to homes through cables

CABLE con’tCABLE con’t

Homeowners subscribe to serviceHomeowners subscribe to serviceInstallation of equipmentInstallation of equipmentMonthly feeMonthly feePackage offerings Package offerings

•Cable programmers promote newest shows

•Western Cable Show in Anaheim, CA

•Hope to get new shows into viewer packages

•New channels target specific demographics

•Fox Family Channel

•girlzChannel

•boyzChannel

•Junior high-age market

CABLETELEVISION CABLETELEVISION ADVERTISINGADVERTISING

July 1999July 199980 percent of American homes had 80 percent of American homes had

cable hook-upcable hook-upCable viewing has surpassed traditional Cable viewing has surpassed traditional

network viewingnetwork viewing

CABLE STATIONSCABLE STATIONS

Becoming more specializedBecoming more specializedName some niche channelsName some niche channels

SATELLITE TELEVISIONSATELLITE TELEVISION

Only way for rural areas to receive Only way for rural areas to receive many or any stationsmany or any stationsMust buy a dishMust buy a dishStarting around $130Starting around $130Subscribe to a monthly serviceSubscribe to a monthly serviceCost increases with number of channelsCost increases with number of channels

SATELLITE INDUSTRYSATELLITE INDUSTRY

Predicted to grow to 40 million Predicted to grow to 40 million households by 2007households by 2007More than 200 channelsMore than 200 channels

Satellite TV valuable for marketersSatellite TV valuable for marketersConsumers who live far out canConsumers who live far out can

Learn about products through televisionLearn about products through televisionBuy through the Internet, phone, mailBuy through the Internet, phone, mail

Disadvantages of satellite dishesDisadvantages of satellite dishes

INTERNET ENTERTAINMENTINTERNET ENTERTAINMENT

Selling through the internet is called Selling through the internet is called

e-commercee-commerce

SportsPrize Entertainment SportsPrize Entertainment Inc.Inc.

Web-based companyWeb-based companyMarketsMarkets

Sports informationSports informationInteractive gamesInteractive gamesTournamentsTournamentsChat roomsChat roomsSports-related merchandiseSports-related merchandise

•Revenue generated through

•Advertisements

•Retail sales

•Merchandise auctions

•Goal

•Create a community of sports fans on the Internet

SportsPrize.comSportsPrize.com

Primary audience25-54 year old males College graduatesHousehold income of more than $70,000

May make user’s names available to marketers

•Marketers then

•Prepare advertising campaigns geared toward those users

•320 million Internet users

•55 million being Internet shoppers

•Internet becomes the most valuable place to advertise

MEGA-DISTRIBUTIONMEGA-DISTRIBUTION

Broadcast webs called affiliationsBroadcast webs called affiliationsGroup of television networks, production Group of television networks, production

studios and related entertainment that studios and related entertainment that produce shows inhouse for their groupproduce shows inhouse for their group

This kind of business structure is This kind of business structure is called vertical integrationcalled vertical integrationOne company controls several different One company controls several different

areas of the same industryareas of the same industry

TRENDTREND

USA Network merged with LycoUSA Network merged with LycoBrings together 70 million television Brings together 70 million television

viewing homesviewing homesAnd 30 million Internet usersAnd 30 million Internet users

MOVIE MARKETINGMOVIE MARKETING

Trailers or previewsTrailers or previewsCritical to attracting audienceCritical to attracting audienceRatedRatedMuch attention paid to what to includeMuch attention paid to what to include

GETTING CONSUMER GETTING CONSUMER INTERESTINTEREST

Pay-Per-View promotions tend to Pay-Per-View promotions tend to increase interest in video rentalsincrease interest in video rentals

Titanic fell off top 40 rental listTitanic fell off top 40 rental listPay-Per-View advertising campaign Pay-Per-View advertising campaign

pulled Titanic back to #6pulled Titanic back to #6Paramount also introduced TV ad for Paramount also introduced TV ad for

video Christmas givingvideo Christmas givingPoint-of-Purchase displayPoint-of-Purchase display

POINT-OF-PURCHASE DISPLAYPOINT-OF-PURCHASE DISPLAY

Display set up at the checkout areaDisplay set up at the checkout area

THE BLAIR WITCH PROJECTTHE BLAIR WITCH PROJECT

Developed a web pageDeveloped a web pageMade story look like real news storyMade story look like real news storyUpdated web page periodically Updated web page periodically Film awards and website caused word to Film awards and website caused word to

spread quicklyspread quicklyPer-screen revenue -- $56,000Per-screen revenue -- $56,000

#1 Eyes Wide Shut averaged $9,000#1 Eyes Wide Shut averaged $9,000

““KIDVID” PROMOTIONKIDVID” PROMOTION

Bypass releasing movies in theaters Bypass releasing movies in theaters and go directly to rental and sales of and go directly to rental and sales of videovideoThe Lion King II: Simba’s PrideThe Lion King II: Simba’s PrideGenerated almost $10 million in sales Generated almost $10 million in sales

with no theater showingswith no theater showings

SEE IT AT HOMESEE IT AT HOME

Videos available for saleVideos available for saleWal-MartWal-MartBlockbusterBlockbusterHollywood VideoHollywood Video

Prices have come downPrices have come downVideo vs digitalVideo vs digital

MARKETING MYTHSMARKETING MYTHS

Making product associated with Making product associated with successful movie not always a successful movie not always a successful strategysuccessful strategyStar Wars: Episode 1—The Phantom Star Wars: Episode 1—The Phantom

MenaceMenace1999 opened in 2,970 theaters1999 opened in 2,970 theatersBroke box-office and single-day recordsBroke box-office and single-day records

Hasbro purchased rights to Hasbro purchased rights to merchandise for $600 millionmerchandise for $600 millionSales slow—prices slashedSales slow—prices slashed