Distributing Entertainm ent Modifying Channels Traditional Distribution Entertainment

Distributing Entertainm ent

Modifying Channels Traditional Distribution Entertainment Distribution Manufacturer Producer Retailer Media Outlet Consumer

Before we move on… 0 What is…. . 0 Direct Distribution 0 Indirect Distribution 0 Media

Distributing Entertainment 0 Entertainment distribution focused on… 0 Movies 0 Television

Distribution Channels in Entertainment 0 Entertainment is mainly distributed through media outlets 0 0 0 Traditional Networks Cable Satellite Internet Studios 0 Theaters 0 At Home channels

The Evolution of Network Television and Cable 0 In the early days of television, there were only 3 television network 0 ABC, CBS, NBC 0 Implementation of cable allowed consumers to choose from hundreds of channels 0 Gained popularity in 1980’s 0 Satellite and Digital Cable now offer wider selection on choices

Cable Mania 0 Originally very limited 0 Has grown through… 0 Digital cable 0 HD is the future—eventually all channels will be HD 0 Cable offers Premium Channels 0 HBO, Show Time, Starz 0 New cable programs introduced at the Western Cable Show each December in Anaheim, California 0 This trade show helps get new shows into local cable channel packages

The Success of Cable as a Media Outlet 0 Cable channels use specific shows to target demographic markets 0 While a lot of people still watch network TV, cable TV has many more viewers. 0 Cable channels can be targeted to specific markets, allowing them to get advertisers for those specific markets – 0 Lifetime – women’s products 0 ESPN – sports enthusiast products 0 Food Network – Cooks

Internet Entertainment Media 0 Internet entertainment has grown dramatically over the last decade. 0 Types of Internet entertainment: 0 Social Media 0 Internet TV 0 Hulu 0 Movies 0 Netflix 0 Music, Books 0 i. Tunes

Movie Distribution o Trailers or Previews – Advertisements for other movies shown on-screen in movie theaters or on videos sold for home viewing utilizing internet media o The movie industry is suffering from a shift in traditional distribution outlets o many people aren’t going to theaters any more – they wait for the movies to come out on DVD or Blu-Ray o Trendso Smaller movies just go straight to DVD o Big movies available in 3 D at higher price

Mega Distribution: Vertical 0 Vertical Integration 0 In this system there were 8 major media conglomerates (referred to a “Big Media”) that controlled most of the entertainment media and news media in America 0 Goal: to streamline and keep profits in company 0 The idea was for one company to own all levels from books, to TV networks, to movie production, to news outlets, to theme parks 0 Example: Disney 0 Broadcast Web 0 Groups of television networks, production studios, and related entertainment firms that produce shows in-house for their group

Mega Distribution 0 Disney owned everything and controlled everything from the books about their shows and movies 0 0 0 Golden Books Disney Channel Disney Pictures ABC Channels Disney Theme Parks

Mega Distribution: Horizontal 0 Two or more organizations at the same level join together for distribution/marketing purposes to capitalize on a new opportunity 0 “Mergers”

Mega Distribution 0 Disney Horizontal Integration

Who really controls distribution? 0 THE BIG 6! 0 http: //www. businessinsider. com/these-6 corporations-control-90 -of-the-media-in-america 2012 -6

The Down Side to Mega Distribution 0 Integration was a popular idea in the early 2000’s, 0 Many integrated media conglomerates failed and have now divested themselves of the various media 0 Hard to control quality and operations

Using Retailers to Distribute 0 Most “Home Entertainment” products are sold through retailers 0 Brick and Mortar 0 E-Commerce 0 Mostly Consists of 0 DVD’s and Blu-Ray Discs 0 To help stimulate sales the production company often provides the retailer with a point of purchase display

DECA Role Play 0 Groups of 3! 0 You will work with your group members to come up with a distribution solution for the problem 0 Get creative! 0 Carefully follow instructions on handout 0 The last 20 minutes of class we will present our ideas 0 Winners get a prize!

Distributing Sports

Distributing Sports 0 Distributing professional sports through 0 Media 0 Stadiums 0 Professional Sports have a special situation…they are cartels!

Distributing the Game 0 Individual teams within a professional league are separately operated businesses, but they are not in competition with each other as they would be in a free open market 0 Each team is a member of a cartel 0 A cartel is a combination of independent businesses formed to regulate production, pricing, and marketing of a product

Distributing the Game 0 The professional leagues (NFL, NBA, MLB, NHL) are all sports cartels 0 Pro leagues are independent sports teams grouped together and governed by a league agreement 0 The league controls the marketing mix of the team – including distribution

Stadium as Place • Regions with a large potential customer base are considered favorable for a team • Owners try to get public funds to subsidize the team • Distribute more than the game • Entertainment • Community Events

Media Outlets for Sports 0 Traditionally distributed through network TV and cable stations 0 The biggest profit center is television revenue 0 TV revenue is generated through the sale of advertising time 0 TBS & CBS have just made a deal with the NBA for rights for the next 15 years

Vertical Integration in Sports 0 Sports teams vertically integrate by owning all levels 0 Minor league teams 0 Major league teams 0 Groups own different teams 0 Atlanta Spirit – runs Phillips Arena 0 Manages Hawks & Thrashers 0 Manages Entertainment Events

Braves Role Play 0 The new Sun. Trust Park in Cobb County is looking to distribute innovative entertainment events through their new facility 0 Groups of 3! 0 We will present our presentations at the end of class 0 Winners get a prize! 0 Remember: THIS IS FOR A GRADE