1. That’s Entertainment entertainment marketing Television is one means used for entertainment marketing. entertainment marketing the process of developing, promoting, and distributing products, or goods and services, to satisfy customers’ needs and wants through entertainment, or any diversion, amusement, or method of occupying time 1 Other forms of entertainment include: Radio Recorded music Newspapers and magazines Video games (home or arcade) Films (theatrical or home) -Includes sports. Entertainment is a $200 billion market. Provides diversion/amusement.

2. That’s Entertainment media The companies that control the media influence how the public is entertained. -Film, TV, radio, publishing, internet, mobile, and more -The companies that control the entertainment industry offer hundreds of jobs as well Ex. Agents, artists, theme park designers, concessions at movie theaters media the methods used for communicating or transmitting messages -Media is driving force of entertainment and can dictate product offerings 2

3. The Influence of Entertainment The clothing we wear, hairstyles, and style in general are influenced by entertainment marketing. fad a short-term popular trend, style, product, or service Ex. Clothing, cars (Italian Job), sayings (I’ll be back), 3 fads Many products or services influenced by entertainment are fads.

4. Entertainment and the Marketing Concept Movie and TV studios are constantly striving to anticipate customer wants and needs and provide what the public wants. (Always a gamble producing entertainment, it can be rejected) -Entertainment usually has a short “shelf life.” Ex. Don’t watch the same movie everyday Don’t go to a theme park everyday *Therefore the marketer must cover costs and make a profit immediately. *The challenge is to keep the customers coming back 4

5. The Economics of Entertainment Entertainment marketing relies on meeting consumer demand for diversion and excitement at a price the customer is willing to pay. -Television is a popular entertainment diversion and relatively inexpensive compared to theme parks -Shoppers can afford to buy only a limited amount of product before exceeding their budgets. (Discretionary Income and Opportunity Cost) *Entertainment industry thrives on getting people to spend discretionary income 5

6. The Economics of Entertainment Merchandising is a big part of the entertainment industry. cross-selling the method of selling the customer additional related products tied to one name 6 cross-selling Businesses use cross-selling to increase profits Ex. Movie toys in happy meals at McDonalds Theme park ride based on movie

7. International Entertainment leisure time Around the world, people spend money as Americans do when it comes to leisure time. leisure time time free from work or duties 7 - Entertainment products are one of America’s strongest exports.(2 nd after agriculture) -Some entertainment is also imported

8. Business Structures Most businesses that produce entertainment for consumers are large corporations with many investors and employees. (Conglomerates –merged with or bought other companies) -Disney owns ESPN, ABC, Marvel, and Lucasfilm -Most of these businesses started out as single proprietorships or partnerships. (Disney, Apple, Microsoft, etc.) 8

9. Business Structures Major entertainment companies have been: 9 The Walt Disney Company Sony Entertainment Viacom (Paramount) Time Warner Vivendi Universal The News Corporation (20 th Century Fox) -These companies are structured using vertical distribution (Create, market, distribute entertainment)

10. Movies Films are released by distributors—usually the studio or a related company—and shown by theaters, or exhibitors, to the public. Ex. Warner Bros.-AMC Theaters break even costs and expenses equal to income revenues 10 break even - Four out of ten films produced may not break even. -Studios want movies that are appealing, possible ticket sales overseas, and a good rental market

11. Movies oligopoly A few large studios make up the core of the film business, which is considered an oligopoly. Ex. Disney, Universal, Paramount oligopoly business situation in which a few firms affect but do not control an industry 11 Independent movie companies called indies operate on their own to make films. Ex. Lions Gate, Artisan

12. Movies Example breakdown of revenues for a film: -Artistic/creative aspects may be sacrificed to make a movie that reaches the widest audience. 12 26 Percent Theatrical Receipts 28 Percent Television Sales 46 Percent Video/DVD Sales and Rentals

13. Theme Parks The first theme parks were called “pleasure gardens” and appeared in Europe around 1550. Walt Disney planned Disneyland to have exhibits and attractions for all ages.(1950’s) -Wanted clean, friendly, especially kid friendly - Whole park based on themes Disney signed sponsors to help pay for Disneyland -Universal Studios, Six-Flags followed example New rides cost $50 million or more The idea for water parks developed in the late 1980s. Revenue not close to Theme Parks 13

14. Television Television is the number one entertainment medium for many Americans. (Average is 4-6 hrs per week for teens and 3 hrs per adult) affiliate an independent broadcaster that contracts with larger national networks for programming Ex. Channel 4-NBC 14 affiliate An independent TV station may decide to become an affiliate.

15. Television Ratings Ratings are a type of market research that determines if a program stays on the television schedule or is dropped. ratings the ranking of TV-show or radio-show popularity in a certain time period 15 -The most famous ratings company is Nielsen Media Research. -Commercials typically cover 8 minutes out of a 30 minute TV show -Prime time is most expensive time to advertise from 8pm – 11pm nightly (Most viewers)

16. Television -Advertising time can be split between national ads and local ads. -Super Bowl is the most popular and expensive to advertise on niche marketing a type of marketing that focuses on a small target market of consumers who have very similar interests Ex. Cooking, History, Science, Sports 16 Niche marketing Niche marketing has expanded in television marketing with the number of cable stations.

17. Radio Radio stations function as television stations do—as either independent stations or part of national networks. Radio stations rely on market research to determine the popularity of programming. -Stations may change formats if needed Each category of programming has a specific target market. For radio, prime time is the morning-drive-to-work period of time. 6am to 9am 17

18. Music Industry The music industry is dependent on record companies (labels) to sign artists and produce and release albums/songs. Record companies make large profits from successful artists. Company must pay author of song if a another artist sings the same one.(Covers). The music industry has lost money as a result of illegal file sharing and downloading music for free on the Internet. Live performances generate income for the music industry. Provides exposure for artist and new albums. 18

19. Performing Arts Performance art is a very centralized business today. Producers control most aspects (Cast, director, venues, promotion) Many productions are financed and produced by the same large entertainment companies that produce film and television. Many popular Broadway shows tour around the country. 19

20. The Internet and Computers brick-and- mortar store Shopping on the Internet has not replaced the brick-and- mortar store. -It has cut into sales brick-and-mortar store a retail business with a physical location or store site 20 The growth of the video and computer game industry has been steady and expansive. Ex. Odyssey (1972), Atari, Nintendo, Xbox, Playstation

21. Other Entertainment Businesses Other entertainment businesses include: nonprofit organization non-government organization that focuses on providing a service rather than a profit 21 The circus Themed restaurants - Hard Rock Café, Planet Hollywood Opera and ballet –Many produced by nonprofit organizations

22. Types of Entertainment Businesses 22 Movies Theme Parks Television Radio Music Industry Performing Arts The Internet Seek Out Target Markets Print