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Entertainment Industry

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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  1. Entertainment Industry Chapter 8

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. Promoting Theatre • Word of Mouth is most used method of promoting Theatre • The MET Theatre in NYC is where most shows start

  8. 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

  9. 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

  10. Awards and Annual Events • The Grammy’s • Awarded to top musicians • 92 categories • Michaels Jackson won a record 8 Grammy’s in 1983

  11. 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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