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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 profits 8 1
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
cost cutting
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
generating film revenue
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
distribution of entertainment 8 2
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
marketing music and theatre 8 3
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
promoting theatre
Promoting Theatre
  • Word of Mouth is most used method of promoting Theatre
  • The MET Theatre in NYC is where most shows start
distributing music
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
awards and annual events
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
awards and annual events10
Awards and Annual Events
  • The Grammy’s
    • Awarded to top musicians
    • 92 categories
    • Michaels Jackson won a record 8 Grammy’s in 1983
awards and annual events11
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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