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TRANSCRIPT
Entertainment Marketing
Types of Entertainment Businesses
2
Chapter Objectives
Define entertainment marketing.
Identify different types of entertainment media.
Explain the economics of entertainment marketing.
Discuss the global impact of entertainment marketing.
Explain types of businesses in the entertainment industry.
Identify forms of entertainment marketed to consumers.
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That’s Entertainment
Throughout history and around the world, people
have enjoyed music, sport, spectacle, art, and other
forms of diversion.
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That’s Entertainment
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
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Other forms of
entertainment include:
Radio
Recorded music
Newspapers and magazines
Video games (home or arcade)
Films (theatrical or home)
That’s Entertainment
The companies that control
the media influence how
the public is entertained.
media the methods
used for communicating
or transmitting
messages
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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
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Many products or services
influenced by
entertainment are fads.
Entertainment and the
Marketing Concept
Movie and TV studios are constantly striving to
anticipate customer wants and needs and provide
what the public wants.
Entertainment usually has a short ―shelf life.‖
The marketer must cover costs and make a profit
immediately.
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The Economics of
Entertainment
Entertainment marketing relies on meeting
consumer demand for diversion and excitement at
a price the customer is willing to pay.
Shoppers can afford to buy only a limited amount of
product before exceeding their budgets.
The entertainment and sports businesses thrive on
getting people to spend their discretionary income.
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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
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Businesses use
cross-selling to increase
profits
International
Entertainment
Around the world, people
spend money as
Americans do when it
comes to leisure time.
leisure time time free
from work or duties
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Entertainment products are
one of America’s strongest
exports.
What does the term media mean?
What are fads?
What product is one of America’s strongest
exports?
1.
2.
3.
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Business Structures
Most businesses that produce entertainment for
consumers are large corporations with many
investors and employees.
Most of these businesses started out as single
proprietorships or partnerships.
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Business Structures
The major entertainment companies are:
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The Walt Disney Company
Sony Entertainment
Viacom (Paramount)
Time Warner
Vivendi Universal
The News Corporation (20th Century Fox)
These companies are structured using vertical
distribution.
Movies
Films are released by
distributors—usually the
studio or a related
company—and shown by
theaters, or exhibitors, to
the public.
break even costs and
expenses equal to
income revenues
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Four out of ten films
produced may not break
even.
Movies
A few large studios make
up the core of the film
business, which is
considered an oligopoly.
oligopoly business
situation in which a few
firms affect but do not
control an industry
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Independent movie
companies called indies
operate on their own to
make films.
Movies
In 2000, the breakdown of revenues for film was:
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26 Percent
Theatrical Receipts
28 Percent
Television Sales
46 Percent
Video/DVD
Sales and
Rentals
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.
Disney signed sponsors to help pay for
Disneyland.
The idea for water parks developed in the
late 1980s.
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Television
Television is the number
one entertainment medium
for many Americans.
affiliate an independent
broadcaster that
contracts with larger
national networks for
programming
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The producers of shows are
not necessarily distributors.
An independent TV station
may decide to become an
affiliate.
Television
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
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The most famous ratings
company is Nielsen Media
Research.
Television
Advertising time can be
split between national ads
and local ads.
niche marketing a type
of marketing that
focuses on a small
target market of
consumers who have
very similar interests
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Prime time is the most
expensive advertising time.
Niche marketing has
expanded in television
marketing with the number
of cable stations.
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.
Each category of programming has a specific
target market.
For radio, prime time is the morning-drive-to-
work period of time.
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Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com.
Log On, Tune In
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Many traditional radio stations, including syndicated station NPR (National
Public Radio), also broadcast via the Internet. It take a large amount of
bandwidth to support this kind of continuous, or streaming, media—and
bandwidth can be expensive. Some companies offer their powerful
Internet servers for a fee so you can operate your own station—and
broadcast your message to listeners anywhere in the world.
For more information on sports and entertainment marketing,
go to marketingseries.glencoe.com.
Unlike traditional radio stations, online radio
stations offer audio as well as text, graphics,
and interactive features such as chat rooms.
Music Industry
The music industry is dependent on record companies to sign artists and produce and release CDs.
Record companies make large profits from successful artists who rely on up-front payments and royalties.
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.
24
Performing Arts
Performance art is a very centralized
business today.
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.
25
The Internet and
Computers
Shopping on the Internet
has not replaced the brick-
and-mortar store.
brick-and-mortar store
a retail business with a
physical location or store
site
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The growth of the video
and computer game
industry has been steady
and expansive.
Other Entertainment
Businesses
Other entertainment
businesses include:
nonprofit organization
non-government
organization that
focuses on providing a
service rather than a
profit
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The circus
Themed restaurants
Opera and ballet
– nonprofit organizations
Variety of Markets
With so many forms of entertainment, marketing
professionals have unlimited products to offer to
almost any target market.
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Types of Entertainment Businesses
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Movies
Theme
Parks
Television
Radio
Music
Industry
Performing
Arts
The Internet
Seek Out Target Markets
What is an indie movie company?
What is prime time for television?
What are royalties?
1.
2.
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3.