1. Entertainment Distribution ENTERTAINMENT Written by: M. Reed Georgia CTAE Resource Network 2010

2. OBJECTIVES To understand the different kinds of entertainment distribution To discuss promotional strategies for motion pictures

3. DISTRIBUTION ENTERTAINMENT Movies are over 100 years old Television is over 60 years old Public use of the internet has only been about 20 years Now you can watch movies & TV on the internet

4. PICK A PARTNER: Compare watching a movie over the internet with watching a DVD or Blu Ray on television  What are the positives?  The negatives?  Which do you prefer?  What changes would make you change your mind? ACTIVITY

5. ENTERTAINMENT DISTRIBUTION In the early days of television, there were only 3 television networks to choose from – ABC, CBS or NBC Cable allows consumers to choose from hundreds of channels Satellite TV also allows for hundreds – even more than cable Traditional television broadcasting is losing power as cable, satellite, and the internet quickly grab shares of the market Newsweek recently reported that one of the broadcast networks may become cable within the next year

6. CABLE MANIA The number of cable channels has increased greatly especially those with digital channels Originally cable space was limited, digital technology has increased the availability of cable space Analog cable has been replaced by digital cable. All cable is digital, some is HD, in the next few years the number of HD channels will increase until all will eventually be HD.

7. CABLE MANIA Home owners subscribe to a cable service that includes installation (a one time cost) and a monthly fee for programming – Customers pay more for premium channels such as HBO, Starz, Showtime, etc. Cable programmers promote their new shows at the Western Cable Show each December in Anaheim, California This trade show helps get new shows into local cable channel packages

8. CABLE MANIA 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; etc.

9. SATELLITE TELEVISION Satellite TV competes with cable in many areas where both are available In other areas cable is not available and only the satellite system will bring in more than network programming Consumers who want satellite access must buy a dish and then subscribe to a monthly service

10. SATELLITE TELEVISION People who live far from shopping can purchase items viewed on the satellite One drawback is that dishes often cannot pick up transmissions from local stations

11. INTERNET ENTERTAINMENT Internet entertainment has grown dramatically over the last decade. Types of Internet entertainment: Social Media (Facebook/MySpace) Internet TV Movies Games Books on the Internet Virtual Sports YouTube Radio Music

12. INTERNET ENTERTAINMENT Selling through the internet is called e- commerce The internet has opened up a whole new area of marketing. Marketers can advertise in many forms on the internet and so many people use it everyday, it has become an effective marketing tool

13. ARTS ENTERTAINMENT Attendance is still strong at live performances. Concerts Plays Symphonies Art museums (maybe not as much) Live performances are distributed through small local theaters and clubs up to Broadway plays and large concerts

14. MEGA-DISTRIBUTION BROADCAST WEBS – Groups (called affiliations) of television networks, production studios, and related entertainment firms that produce shows in-house for their group VERTICAL INTEGRATION -- Was a change from previous distribution systems. 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. The idea was for one company to own all levels from books, to TV networks, to movie production, to news outlets, to theme parks – like Disney

15. MEGA-DISTRIBUTION Disney owned everything and controlled everything from the books about their shows and movies, the music, the TV channels, internet sites, the movie studios and the theme parks. Disney controlled everything in the channel of distribution, so they would receive all profit and have total control.

16. MEGA-DISTRIBUTION Vertical Integration was a popular idea in the early 2000’s, but it didn’t work (as it never really does). The media conglomerates failed and have now divested themselves of the various media outlets they had devoured in the late 1990’s and early 2000’s.

17. MOVIE MARKETING Trailers or Previews – Advertisements for other movies shown on-screen in movie theaters or on videos sold for home viewing  Promotion affects the box office draw of movies – more promotion = higher box office  The movie industry is suffering – 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

18. SEE IT AT HOME DVD’s and Blu Ray Discs are available at mass market retailers so movie buffs do not have to go to the theater to see their favorite movies To help stimulate sales the production company often provides the retailer with a point of purchase display There have been many changes in video format – 16mm to video to DVD to Blu Ray

19. THAT’S A WRAP!