Chapter 8
Choose the Channel
8.1 Global Channels of Distribution
8.2 Sports Distribution
8.3 Entertainment Distribution
8.4 Technology and Distribution
Media
Sports and Entertainment Marketing
© Thomson/South-Western
Winning Strategies
TiVo, Inc.
 The term TiVo refers to both the service
and the company’s digital video recorder.
 trying to distinguish itself from competitors
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internet video
can view assorted clips free of charge
stream digital music
load photos
 cable and satellite TV are main competitors
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Lesson 8.1
Global Channels of Distribution
Goals
 Explain the importance of sports and
entertainment distribution.
 List and describe distribution channels
for sports and entertainment.
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Terms
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free enterprise
amphitheaters
venue
mass media
platforms
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GET IT THERE
 distribution
 involves the transportation and
dissemination of a product or service
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Economics of Distribution
 free enterprise
 an economic system that allows the
unregulated supply and demand of
products to drive the economy
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Global Challenges
 Many countries discourage films
produced in other countries from
entering easily into their own countries.
 restrictions
 tariffs
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 The U.S. has no formal barriers to the
import of audiovisual entertainment.
 demand for foreign-produced
entertainment is low
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Disney in Europe
 In 1949, Walt Disney hired a European
citizen to run the Disney distribution
operations in Europe.
 Today, Disney character merchandise
can be purchased anywhere in the
world.
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 How does distribution affect the success
of an event or product?
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THE CHANNELS
 two major channels of distribution
 live
 media
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Live Events
 amphitheaters
 oval-shaped outdoor theaters with tiered
seating around a central staging area
 venue
 the facility where an event is held
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Via Media
 mass media
 the means of distributing the event to a
large volume of people (the masses)
 provides massive marketing opportunities
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 Radio
 is unique
 requires inexpensive equipment
 readily available where other media is unavailable
 Television
 over 110.6 million U.S. households own at
least one television
 male viewers between the ages of 18 and 49
are the target audience of most televised
sporting events
 sponsors’ advertising is geared to the target
audience
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 The Internet
 has sent shock waves through the major
traditional media
 As Internet technology improves, creative
ideas emerge for its use to enhance and
complement the older channels of
distribution.
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Delivery Options
 platforms
 types of delivery systems
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 Name two major channels of distribution
for sports and entertainment.
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Lesson 8.2
Sports Distribution
Goals
 Discuss distribution and sponsorship of
amateur sports and recreation.
 Discuss the distribution of college
sports.
 Discuss the distribution of professional
sports.
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Terms
 Title IX
 cartel
 league agreement
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AMATUER SPORTS AND
RECREATION
 amateur athlete
 unpaid
 plays for enjoyment and challenge
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Fitness and Fun
 The recreation industry is driven by:
 health
 leisure time
 money
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Facilities versus Wilderness
 A balance must be struck between the
need for outdoor recreation and the
need to preserve the environment.
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Getting Access
 Participation in recreational sports is
directly related to income.
 Title IX
 a 1972 amendment to federal education
law
 prohibits discrimination against females in
high school sports
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 What factors affect the development of
recreational sports facilities?
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COLLEGIATE SPORTS
 A winning college team has economic
implications for its:
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school
community
region
state
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Football Rules
 The Bowl Championship Series (BCS)
 in 2006, participating teams received between
$14.8 and $18.3 million
 sponsors pay for teams’ travel and participation
expenses
 sponsors want a sell-out crowd and a large TV
audience to maximize revenue
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College Team Rankings
 High BCS ratings
 equate to big money
 determine which teams play in the national
championships
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 What influences which games are
distributed via national television?
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PROFESSIONAL SPORTS
 In market driven economies,
professional sports are distributed based
on demand.
 In government controlled economies,
distribution of sports is tightly controlled.
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Worldwide Coverage
 The 2006 FIFA World Cup matches:
 had a combined audience of 32 billion
people
 were broadcast in HDTV
 took three years to plan
 had more than 300 broadcast partners
 provided a disposable arena for 10,000
fans of the final games
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 Political Football
 Some countries with restrictive governments
prohibit and/or censor the broadcast of
games.
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Distributing the Game
 In the U.S., demand for professional
sports teams exceeds supply.
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 cartel
 a combination of independent businesses
formed to regulate production, pricing, and
marketing of a product
 league agreement
 controls the marketing mix and governs the
distribution of the games
 Special legislation exists to exempt
professional sports teams from federal
antitrust laws.
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 How Distribution is Decided
 Regions with a large potential customer base
are considered favorable for the location of a
team.
 subsidize
 to financially back a team
 often with public funds
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 It Takes Money
 expansion fee
 the price that existing leagues’ owners set for the
new owner of a franchise
 Corporations will pay high fees to get their
name on a stadium.
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Nonstop Distribution
 Through assorted media outlets, the
NFL offers related coverage 24/7.
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 Why would a city want a professional
sports team in its area?
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Lesson 8.3
Entertainment Distribution
Goals
 Explain the distribution of movies.
 Discuss the changing formats of music
distribution.
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Terms
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art-house movies
wide release
movie preview
docking station
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AT THE MOVIES
 Barcelona, Spain shows more than 80
movies daily.
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The Big Screen
 Movies are made with the demographics of a
particular audience in mind.
 movie preview
 the release of a movie to a limited number of
theaters prior to its official release
 art-house movies
 outside the mainstream of popular subjects
 often made by independent filmmakers
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Managing the Costs of Movies
 low-budget movies
 cost less than $250,000 to produce
 wide release
 national distribution of a movie to a
thousand or more theaters concurrently
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Watch It at Home
 Netflix opened a new channel of
distribution for entertainment.
 online DVD rental
 mails movies to subscribers
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 List at least three ways that movies are
distributed.
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MAKING MUSIC
Marketing the King
 The appeal of an icon offers a variety of
opportunities to distribute music and
related products globally.
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From Vinyl to iPod
 digital files
 Music stored on a digital file can be played
on personal computers or portable media
players.
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Jumping on the Bandwagon
 Producers of high-end electronic stereo
systems jumped on the digital
bandwagon.
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 docking station
 enables iPods to be connected to speakers
that project the music throughout a room
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 What changes in music distribution did
portable digital music players bring?
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Lesson 8.4
Technology and Distribution
Media
Goals
 Describe the convergence of sports and
entertainment media.
 Explain the changes brought about by
digitalizing music.
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Terms
 podcast
 vertical integration
 MP3
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MEDIA MERGE
 The lines between the various
information, communication, and
entertainment media are becoming
more and more blurred.
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Cable Mania
 Initially, there were three TV networks.
 ABC
 NBC
 CBS
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 podcast
 a way of distributing multimedia files over the
Internet for playback on computers, iPods,
cell phones, and other mobile devices
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Digital Delirium
 All television transmissions must convert from
analog to digital format by February 2009.
 After analog transmissions stop, a set-top
converter box will be required to use an
analog TV.
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Space-Based Radio
 Satellite radio systems have three
components.
 satellites that orbit the earth
 ground stations that transmit signals to the
satellites
 radio receivers that unscramble the signals for
listeners
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 satellite radio
 provides services on demand
 uninterrupted service from coast to coast
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Mega Distribution
 broadcast webs
 groups of related entertainment
businesses that produce shows or provide
services for other group members
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 vertical integration
 when one company controls several different
areas of the same industry
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 Disney is vertically integrated.
 seeks to create cross-promotional
opportunities
 can market both advertising and
entertainment to the world
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 Name two advantages of satellite radio
over traditional radio.
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DIGITAL PLATFORMS
 From a business planning perspective, it
is difficult for sports and entertainment
distributors to keep up with
technological changes.
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The Internet Music Revolution
 file-sharing
 making files available for others to
download
 piracy
 unauthorized copying
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 Lawsuits can be filed against computer
owners who have a large collection of
illegally obtained, copyright-protected
materials.
 MP3
 a digital audio encoding and compression
format designed to greatly reduce the amount
of data required to represent audio
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 lossy
 a method to compress music and then
decompress it in a way that does not
noticeably affect the quality
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 Why is there only a limited amount of
music available in the MP3 format?
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PERFORMANCE INDICATORS
EVALUATED
 Understand the impact of hurricanes and
the need for a guest safety plan.
 Realize the importance of explaining a
preparedness plan to prospective hotel
guests.
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 Design an effective multimedia presentation
that outlines the dangers of hurricanes and
explains the safety plan.
 Explain all aspects of the multi-media
presentation.
 If applicable, demonstrate teamwork that
involves all members in the presentation.
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THINK CRITICALLY
1. Why does a multimedia presentation work
well for this type of project?
2. Why is a multimedia presentation more
effective than a printed document?
3. Why should the hotel invest money in this
project?
4. How would this multimedia presentation be
distributed to the intended customers?
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