DISTRIBUTION OF ENTERTAINMENT Chapter 8 Lesson 8.2

JUDGMENT CALL What is a V-chip? What is a V-chip? Go to fcc.gov/vchip Go to fcc.gov/vchip Think of two shows that fit into each category Think of two shows that fit into each category

DISTRIBUTION OF ENTERTAINMENT Early days Early days 3 television networks 3 television networks Now Now Cable Cable Satellite Satellite Internet Internet

CABLE MANIA Original cable channel space was limited Original cable channel space was limited Technology allowed more channels to be added Technology allowed more channels to be added Cable television programs picked up by master antenna Cable television programs picked up by master antenna Delivered to homes through cables Delivered to homes through cables

CABLE cont Homeowners subscribe to service Homeowners subscribe to service Installation of equipment Installation of equipment Monthly fee Monthly fee Package 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 ADVERTISING July 1999 July percent of American homes had cable hook-up 80 percent of American homes had cable hook-up Cable viewing has surpassed traditional network viewing Cable viewing has surpassed traditional network viewing

CABLE STATIONS Becoming more specialized Becoming more specialized Name some niche channels Name some niche channels

SATELLITE TELEVISION Only way for rural areas to receive many or any stations Only way for rural areas to receive many or any stations Must buy a dish Must buy a dish Starting around $130 Starting around $130 Subscribe to a monthly service Subscribe to a monthly service Cost increases with number of channels Cost increases with number of channels

SATELLITE INDUSTRY Predicted to grow to 40 million households by 2007 Predicted to grow to 40 million households by 2007 More than 200 channels More than 200 channels Satellite TV valuable for marketers Satellite TV valuable for marketers Consumers who live far out can Consumers who live far out can Learn about products through television Learn about products through television Buy through the Internet, phone, mail Buy through the Internet, phone, mail Disadvantages of satellite dishes Disadvantages of satellite dishes

INTERNET ENTERTAINMENT Selling through the internet is called Selling through the internet is callede-commerce

SportsPrize Entertainment Inc. Web-based company Web-based company Markets Markets Sports information Sports information Interactive games Interactive games Tournaments Tournaments Chat rooms Chat rooms Sports-related merchandise Sports-related merchandise

Revenue generated through Advertisements Retail sales Merchandise auctions Goal Create a community of sports fans on the Internet

SportsPrize.com Primary audience year old males College graduates Household income of more than $70,000 May make users 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-DISTRIBUTION Broadcast webs called affiliations Broadcast webs called affiliations Group of television networks, production studios and related entertainment that produce shows inhouse for their group Group of television networks, production studios and related entertainment that produce shows inhouse for their group This kind of business structure is called vertical integration This kind of business structure is called vertical integration One company controls several different areas of the same industry One company controls several different areas of the same industry

TREND USA Network merged with Lyco USA Network merged with Lyco Brings together 70 million television viewing homes Brings together 70 million television viewing homes And 30 million Internet users And 30 million Internet users

MOVIE MARKETING Trailers or previews Trailers or previews Critical to attracting audience Critical to attracting audience Rated Rated Much attention paid to what to include Much attention paid to what to include

GETTING CONSUMER INTEREST Pay-Per-View promotions tend to increase interest in video rentals Pay-Per-View promotions tend to increase interest in video rentals Titanic fell off top 40 rental list Titanic fell off top 40 rental list Pay-Per-View advertising campaign pulled Titanic back to #6 Pay-Per-View advertising campaign pulled Titanic back to #6 Paramount also introduced TV ad for video Christmas giving Paramount also introduced TV ad for video Christmas giving Point-of-Purchase display Point-of-Purchase display

POINT-OF-PURCHASE DISPLAY Display set up at the checkout area Display set up at the checkout area

THE BLAIR WITCH PROJECT Developed a web page Developed a web page Made story look like real news story Made story look like real news story Updated web page periodically Updated web page periodically Film awards and website caused word to spread quickly Film awards and website caused word to spread quickly Per-screen revenue -- $56,000 Per-screen revenue -- $56,000 #1 Eyes Wide Shut averaged $9,000 #1 Eyes Wide Shut averaged $9,000

KIDVID PROMOTION Bypass releasing movies in theaters and go directly to rental and sales of video Bypass releasing movies in theaters and go directly to rental and sales of video The Lion King II: Simbas Pride The Lion King II: Simbas Pride Generated almost $10 million in sales with no theater showings Generated almost $10 million in sales with no theater showings

SEE IT AT HOME Videos available for sale Videos available for sale Wal-Mart Wal-Mart Blockbuster Blockbuster Hollywood Video Hollywood Video Prices have come down Prices have come down Video vs digital Video vs digital

MARKETING MYTHS Making product associated with successful movie not always a successful strategy Making product associated with successful movie not always a successful strategy Star Wars: Episode 1The Phantom Menace Star Wars: Episode 1The Phantom Menace 1999 opened in 2,970 theaters 1999 opened in 2,970 theaters Broke box-office and single-day records Broke box-office and single-day records Hasbro purchased rights to merchandise for $600 million Hasbro purchased rights to merchandise for $600 million Sales slowprices slashed Sales slowprices slashed