Wednesday 28 March 2012

Marketing and Distribution

1. What is vertical distribution?
Vertical distribution/integration is the process in which several steps in the production and/or distribution of a product or service are controlled by a single company or entity, in order to increase that company’s or entity’s power in the marketplace.

Simply said, every single product that you can think of has a big life cycle. While you might recognize the product with the Brand name printed on it, many companies are involved in developing that product. These companies are necessarily not part of the brand you see.

2. How does this affect control of the film industry?
It means that the film industry is highly controlled by a very limited number of people who control what films are distributed. This makes it difficult for smaller film producers to create and distribute films and our choice of film becomes very narrow and specific as it is only coming from these few producers.

3.How does a recent disney film benefit from this?
As disney is one of the main big media companies, they can use all of their owned forms of media such as various TV and radio shows to promote their upcoming film.

4. Which media companies do general electric own?A minority share in television networks NBC and Telemundo, Universal Pictures, Focus Features, 26 television stations in the United States and cable networks MSNBC, Bravo and the Sci Fi Channel. GE also owns 80 percent of NBC Universal.

5. What manufacturing facility do they own which supports the vertical distribution system?
Universal Studios home entertainment

6. Look back at the previous two answers. How then do companies owned by General Electric benfit from their vertical distribution system?
As they are all linked, they can work together to share various ways of distributing their media and help to promote each other.

7.Compared to the production cost of a film, how much does marketing and distribution cost?
25-30% of the entire film budget is spent on marketing

8.Who do Working Title primarily market their films towards?
Working Title have developed a wide range of films with varying genres ranging from comedies such as hot fuzz to more deeply thoughtful, romantic, meaningful films like atonement. Obviously each genre will be aimed at audiences interested in that style of film, but Working Title have said that they aim their films at audiences that are interested in the story behind the film apposed to those who are interested in action packed films with special effects for example.

9. Vertical distribution systems should guarentee a film's success. Find a Working Title film that did not perform as well as expected. What factors, other than distribution and marketing, caused this film to be a commercial failure?
The Boat That Rocked -The film opened 1 April 2009 and was a commercial failure at the British box office, making only GB£6.1 million in its first twelve weeks, less than a quarter of its over £30 million production cost. It received mixed reviews, with most criticism directed at its muddled storyline and 2¼-hour length. For its North American release it was re-edited to trim its running time by twenty minutes, and retitled Pirate Radio. Opening 13 November 2009, Pirate Radio was still commercially unsuccessful, earning only about US$8 million (approximately £5 million).

10. Smaller companies cannot benefit from a vertical distribution system. What marketing methods do independant or small film studios use instead?
Using the internet to spread news of their niche films that will appeal to specific audiences that will be searching for them.

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