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Entertainment Industry Chapter 8 Entertainment Profits (8.1) Major Movie Studios Only 2 made a profit last year Paramount Pictures Twentieth Century Fox Titanic First Movie to earn more than $600 Millions Ran in First Run Theatres until DVD was released Over 1 Million sold in first week

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Entertainment Industry

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Entertainment Profits (8.1)

  • Major Movie Studios

    • Only 2 made a profit last year

      • Paramount Pictures

      • Twentieth Century Fox

  • Titanic

    • First Movie to earn more than $600 Millions

    • Ran in First Run Theatres until DVD was released

    • Over 1 Million sold in first week


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Cost Cutting

  • Movie Studios limit the number of “Wide Release Films”

    • Wide Release means being shown in 2,000+ Theatres

    • Limit promotional spending

      • Blair With Project- Word of Mouth promotion

        • Cost $50,00 to make

        • Grossed over $500 Million


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Generating Film Revenue

  • Studios are distributing more films worldwide

    • Most films only generate 25% of revenue from US ticket sales

    • Some countries do not allow US films to be shown

      • Religious conflicts

    • US imports very few foreign films


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Distribution of Entertainment (8.2)

  • Cable Mania

    • Cable TV/Satellite has led to an explosion of choices of what we view

      • 40 million houses with satellite TV predicted by 2007

      • Offer over 200 channels, DVR service, live shopping

  • Internet Entertainment

    • Many movie trailers available online

    • E-Commerce becoming most used method for shopping

  • Threatening to Local Video Stores


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Marketing Music and Theatre (8.3)

  • Hip Hop Music popularity growing at 30% per year

    • Many songs now “sample” music from hits of the 70’s, 80’s, 90’s

    • Rap music now mainstream and cross cultural

  • Top 5 Longest Running Broadway Shows

    • Cats

    • A Chorus Line

    • Oh! Calucutta!

    • Les Miserables

    • The Phantom of the Opera


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Promoting Theatre

  • Word of Mouth is most used method of promoting Theatre

  • The MET Theatre in NYC is where most shows start


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Distributing Music

  • Shift in Music Formats

    • Vinyl Records

    • Cassette Tapes

    • CD’s

    • MP3

  • Illegal Download Controversy

    • Many major bands speak out against

      • Metallica, Limp Bizkit


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Awards and Annual Events

  • The Oscars

    • Most Famous and Recognizable Award

    • Given by the Motion Picture Academy

    • Second Highest Watched show…next to Super Bowl

    • ABC charges $1,000,000 per minute to advertise


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Awards and Annual Events

  • The Grammy’s

    • Awarded to top musicians

    • 92 categories

    • Michaels Jackson won a record 8 Grammy’s in 1983


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Awards and Annual Events

  • The Tonys

    • Given to top Theatre shows and performers

    • Televised nationally since 1967

    • Not as popular as the Academy Awards or the Grammys


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