Reading The promise is great: the blockbuster and the Hollywood economy. Media, Culture and Society, 31(2), 215-230. By Cucco M. (2009).
Basic notes: -
The author starts of looking at the blockbuster (movie/film) and the marketing strategy's after WWII. Douglas Gomery states - "whilst Jaws wasn't the first film marketed and promoted by and through broadcast television it was the first million-dollar success proved that that strategy was the one that would redefine Hollywood through saturation advertising."
The author then looked at the "saturation booking strategy" and how it has changed over the years due to the new distribution channels which have been introduced. Jaws taught the film indusdtry the power of saturation advertising.
Then there is the strategic role of the opening weekend - "80 percent of the advertising investment is spent in the week before the release of the film in the theatres (Vogel, 1998)." The author also notes thats the most playing time (coverage) is in the first week in order to get the most out of the TV advertising etc... Also in recent times the marketing cost have been higher then production costs...
Movie are also considered an experiential commodity because its hard for the cosumer to know the quality and will often wait until they receive some kind of feedback or read/hear reviews etc...
To maximize the cost of transfer rights: Tends to be higher if the movie did well during its first week...etc...
To maximize the star and pre-sold identity effect: Stars turn into brand-names that help sell the movie. However a stars brand will only last the first week... This is why the distributor puts its efforts towards the first week...
To reduce the danger of competition: Studios have an agreement to release dates to limit competition (i.e. same audience). Certain times are better for release dates to gain maximum impact.
To exploit the potential of multiplex cinemas: life cycle of a movie and how cinemas work with this.
To maximize distributors’ receipts: "Distributors and exhibitors share the takings according to percentages that change over the weeks."concentration of revenue on the first weekend brings a higher remuneration for the distributor."
(a)concentration of advertising costs and maximization of effects;
(b) avoidance of a debate over quality;
(c) maximization of transfer rights costs;
(d) maximization of the star-effect and pre-sold identity;
(e) reduction of the danger of competition;
(f) use of the potential of multiplex cinemas;
(g) maximization of distributors’ revenues.
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