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.
3
That’s Entertainment
Throughout history and around the world, people
have enjoyed music, sport, spectacle, art, and other
forms of diversion.
4
That’s Entertainment
Television is one means
used for entertainment
marketing.
Other forms of
entertainment include:
Radio
Recorded music
Newspapers and magazines
Video games (home or arcade)
Films (theatrical or home)
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
5
That’s Entertainment
The companies that control
the media influence how
the public is entertained.
media the methods
used for communicating
or transmitting
messages
6
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
Many products or services
influenced by
entertainment are fads.
7
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.
8
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.
9
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
Businesses use
cross-selling to increase
profits
10
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
Entertainment products are
one of America’s strongest
exports.
11
1.
What does the term media mean?
2.
What are fads?
3.
What product is one of America’s strongest
exports?
12
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.
Become conglomerates- economies of scale
History of Walt Disney
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Business Structures
The major entertainment companies are:
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.
14
Movies
Films are released by
distributors—usually the
studio or a related
company—and shown by
theaters, or exhibitors, to
the public.
Four out of ten films
produced may not break
even.
break even costs and
expenses equal to
income revenues
Average cost to produce
a major studio film$90 million
Another $40 million to
market it
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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
Independent movie
companies called indies
operate on their own to
make films.
16
Movies
In 2000, the breakdown of revenues for film was:
26 Percent
Theatrical Receipts
46 Percent
Video/DVD
Sales and
Rentals
28 Percent
Television Sales
17
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. (Pepsi, Goodyear, Kodak)
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
The producers of shows are
not necessarily distributors.
An independent TV station
may decide to become an
affiliate.
19
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
The most famous ratings
company is Nielsen Media
Research.
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Television
Advertising time can be
split between national ads
and local ads.
Prime time (8pm to 11pm)
is the most expensive
advertising time.
Niche marketing has
expanded in television
marketing with the number
of cable stations.
niche marketing a type
of marketing that
focuses on a small
target market of
consumers who have
very similar interests
21
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-towork period of time.
22
Log On, Tune In
Operating an e-tail business on an electronic channel—the
Web—can be costly,Unlike
due to
design,radio
delivery,
returns,
and
traditional
stations,
online radio
operating expenses.stations offer audio as well as text, graphics,
and interactive features such as chat rooms.
Though
Many
larger
dot-com
companies
in (National
the
Many
traditional
radio
stations,
including
syndicated crashed
station NPR
1990’s,
small
likeviaHarris
Cyclery
of West
Newton,
Public
Radio),
alsostores
broadcast
the Internet.
It takes
a large
amount of
bandwidth
to support this
kind ofincrease
continuous,
or streaming,
Massachusetts,
actually
sales
using a media—and
basic Web
bandwidth
can be
Some companies
offer their powerful
site. Today,
a expensive.
third of Harris’s
bicycle business
rides in on
Internet
servers
for ahard-to-find
fee so you canparts
operate
your
own station—and
the Web
to get
and
personal
service.
broadcast your message to listeners anywhere in the world.
Describe
an e-business’s
home
page
to your class
after
For
more information
on sports
and
entertainment
marketing,
one through marketingseries.glencoe.com.
goviewing
to marketingseries.glencoe.com.
23
Music Industry
The music industry is dependent on record
companies to sign artists and produce and release
albums.
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 brickand-mortar store.
brick-and-mortar store
a retail business with a
physical location or store
site
The growth of the video
and computer game
industry has been steady
and expansive.
26
Other Entertainment
Businesses
Other entertainment
businesses include:
The circus
Themed restaurants
Opera and ballet
nonprofit organization
non-government
organization that
focuses on providing a
service rather than a
profit
– nonprofit organizations
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Variety of Markets
With so many forms of entertainment, marketing
professionals have unlimited products to offer to
almost any target market.
28
Types of Entertainment Businesses
Movies
Theme Television Radio Music
Performing The Internet
Parks
Industry Arts
Print
Seek Out Target Markets
29
1.
What is an indie movie company?
2.
What is prime time for television?
3.
What are royalties?
30
Checking Concepts
1. Define entertainment
marketing.
2. Identify types of media.
3. Name two consumer
products that are
influenced by
entertainment.
continued
It
is the of
process
of
1. Types
2.
3.
Answers
media
may vary
developing,
include
but
mayfilm,
include
promoting,
and
television,
fashion
clothing
radio,
distributing products,
recorded
and
cars. music,
or goods and
print
media
such as
services,
to satisfy
newspapers
andand
customers’ needs
books,
the Internet,
wants through
entertainment,
and
more. or any
diversion,
amusement, or
methods occupying
time.
31
Checking Concepts
4. Describe an oligopoly.
5. Identify types of
entertainment industry
businesses.
6. Explain why many
films produced do not
break even.
7. Define ratings.
continued
4. The
5.
6.
7.
Ratings
It
Types
is acost
business
ofare
of the
situationofina
entertainment
producing
ranking
films
which
TV-is a
fewhigh
industry
so
show
firms
orthat
radio-show
affect but
do not control
businesses
sometimes
popularity
ininclude
a an
industry.
film,
expenses
certain
TV,time
radio,
are
period.
music, theme
greater
than park,
Internet, computerincome.
game, and
performing arts
businesses. Other
answers are
possible.
32
Checking Concepts
Critical Thinking
8. Describe how cable TV
uses niche marketing.
8. Cable channels
often target their
programs to small
target markets of
consumers with
similar interests.
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