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Overview of Film Industry

G321b – Producers and Audiences.

50% of written exam – 45 minutes (25% overall /50)

50% TV drama analysis – 45 minutes (25% overall /50)

The Film Industry

the issues raised by media ownership in contemporary media

practice

the importance of cross media convergence and synergy in

production, distribution and marketing

the technologies that have been introduced in recent years at the

levels of production, distribution, marketing and exchange

the significance of proliferation in hardware and content for

institutions and audiences

the importance of technological convergence for institutions and

audiences

the issues raised in the targeting of national and local audiences

(specifically, British) by international or global institutions

the ways in which the candidates’ own experiences of media

consumption illustrate wider patterns and trends of audience

behaviour

The question will talk about media industries, media products

and media areas you have studied – this is the Film Industry and

Films (other schools do newspapers, TV, websites, gaming etc so

they have to keep it general).

On a general level, what does the word INDUSTRY mean?

All Industries produce something that in the end we, as consumers, pay

for.

All industries sell products of services in order to re-invest in the

business and make a profit’.

Structure of all industries:

Produce

Distribute

Market

Outlet – Exhibition and Exchange

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Production

The role of the producer is to:

Commission a script

Secure finances

Hire a director

Be involved in the marketing

Hire a technician crew

Oversee Spending

Find Locations

Oversee casting

What risks might the producer have to think about when selecting a

film?

Is it marketable?

Will the funding make a profitable return?

What level of funding is necessary?

What level of audience is it likely to attract?

The three stages of film development are Pre- Production (planning),

Filming (production) & Post-Production (editing & sound). Whilst the

producer will be involved throughout the whole process, the pre

production stages are crucial to ensure the films success, they will need

to think about:

Editing the script

Budgeting

Insurance

Designers

Accommodation

Travel

Equipment

Booking technicians

Locations

Casting

The budget is separated into what is known as Above the Line & Below

the Line expenditures,

Above the Line spending includes the wages for director, performers &

technicians decided before production. This is a fixed amount that will

be agreed between producer and actor/director etc before work on the

film begins.

Below the Line is a changeable spending and includes things such as

equipment, hotels, food, costumes, props, scenery etc.

Notes re producers and their roles/responsibilities

Entrepreneur – businessman – administrator – accountant –

OVERSEERS.

Do their Very Best for all involved in the process – from idea to

exhibition.

Oversee the Creative and Administrative (managerial) – Logistics.

Developing the Script – Raising Money – Make (find the team) and Take

to Market (Distributor).

Create the Package – Director, Cast, Crew that will attract finance.

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Produce budget – find finance from investors – wages, locations, props,

costumes, FX, editing, marketing etc.

Decide on Target Audience (who will want to see it and where will it

play?), Genre, Release Date = hand over to Distributor.

Decide on classification with BBFC and edit, tweak accordingly.

Cost of film matches cost of marketing.

Conglomerates – the Big Producers, Production Companies

Big 6 – Sony, Viacom, News Corporation, Warner Bros, Disney, Comcast

Own newspapers, magazines, websites, search engines, social

networks, music companies, radio stations, TV channels, film

production companies and distribution.

Can their products be entirely INNOVATIVE, free from

interference/bias?

Easy to produce products as massive expertise bank to call on.

Fund with ease....can then reinvest and perhaps take a punt/risk on a

‘niche’ film.

Tent Pole, Mainstream, Indie, High Concept, Art House – different

types of film

Tent-Pole – props up production company – sure bet...usually sequel

(definite target audience – family, action) – Ice Age 2.

Mainstream – wider mass audience – James Bond.

High Concept – sum up in one line ‘bomb on a bus’ – ‘shark eats people’

– not complicated, simple, special FX, good v evil and good wins, conflict

and resolution.

The Hook, The Look, The Book – merchandising, soundtrack franchise

opportunities.

Art House/Specialist – older audience, discerning, worthy, educated,

themes, issues, emotions – foreign movies, foreign culture is explored.

Indie – individual group or director, risky venture, may have big stars

but usually not, some big companies fund indie as they are able to,

funding is normally a struggle, go to foreign countries, BBC, Channel 4,

Canal or even USA.

Funding difference – British v American

American – before they even think of creatives – release date, target

audience, promotional and publicity vehicles sorted – then they make

the movie.

British – make movie – art and creativity important – then think about

how to market, fund it.

Americans – part of conglomerates so funding available, even for indies.

British – seek funding, lottery, Channel 4, Canal, BBC, foreign

investment, individual investments, no government aid now

Conservative.

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Distribution

What does a film distributor do?

Producers need to find a market so they employ a Distribution

company- they are answerable to the production company.

They are responsible for everything that happens between Production

and Exhibition.

Decide on USP and Target Audience/Genre and Release Date, Locations

with Production and then involve the Marketing/PR – WHAT, WHERE,

HOW AND WHOM.

Before it is completed, they will be considered who will see it and why

and how will they be persuaded?

Distributors bring film to the market – they launch it and deliver the

audience to the film.

Distributors will employ a marketing agent to devise an advertising,

publicity and promotional campaign.

They have a ‘release’ plan which is both STRATEGIC and CREATIVE.

They make the deals with the cinemas, festivals, DVD sales, TV channels

etc.

They work with the BBFC to certify the film – important influence on

how it is distributed and marketed.

The audience will end up going to see a film deliberately not by chance

– distributor has achieved his goal.

All big production companies (Warner, Disney, Sony) have their own ‘in

house’ distributors.

Independent Distributors will seek out films at festivals = acquire the

film to distribute.

Will also do previews to get honest feedback to tweak campaign and

even ‘classification’ of film to re-edit.

What is ‘synergy’ and what does it mean for the film industry?

From the Greek Word of working together.

Previously word of mouth and perhaps a billboard, poster, print advert

or review.

Disney first to use it when they used Mickey Mouse as a marketing tool.

Now a myriad of means to promote, advertise and attract an audience.

Audience should not need to make a connection between different

products, promotions, publicity, advertising – should have a coherent

continuity – an overall blended brand.

Posters, TV teasers, trailers, multi media viral campaign, soundtrack,

merchandise – should all work together – strength in numbers.

Blanket coverage of the market – no stone is left unturned.

Ancillary revenue from synergised off shoots can be as relevant as box

office revenue.

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Could all be part of the same ‘conglomerate’ but all different specialties

to focus on but ‘synergy’ between the various arms is essential for a

coherent, focused campaign.

What are different theatrical (film) release patterns and why

might different films be distributed in these different ways?

Timing is essential so is location.

Could be several movies releasing that weekend of the same genre but

is the USP different?

Take into account – local holidays, political campaigns, major sporting

events, other releases, local audiences, award ceremonies, festivals etc.

Will take into account – other promotional, publicity campaigns so that

they all tie in.

Saturation (450+ Screens), after a massive marketing campaign the

film is released simultaneously in all towns and cities. expensive as it is

mass, national release by big companies. Aim to realise revenues in a

short amount of time. DVD release near to the cinema release will

increase revenue from DVDs – sometimes called wide release.

Blanket (300 Screens), after a significant marketing campaign the film

is released into most major multiplexes ready for mass consumption).

in a few major markets, expands week by week so that awareness is

built by word of mouth and publicity. May start in local venues and then

move to national venues – sometimes called modified wide release.

Narrow (150 Screens), a more niche film for a specific audience

demographic, it is released in most major cities and towns.

engagements at limited screens but in large urban areas.. Positive

reviews means it then moves on to other large urban areas. Used for

upscale, art house or foreign films – critical acclaim is important to

provide momentum for a wide release – sometimes called exclusive or

limited run.

Platform (15 Screens), an art house film it is hoped that a limited

release will help create a buzz and encourage word of mouth sales –

sometimes called ‘territorial Saturation’ – area by area is saturated

with advertising, promotion – used by films targeting specific markets

ie. Cultural, religious.

Always considers where will the film work?

How will it work?

How should they release it?

Particular local conditions to take into account?

What is the BBFC and what impact do they have on films?

British Board of Film Classification – self-regulatory made up of film

professionals.

They are the ‘gatekeepers’ to distribution.

Work with a gentlemen’s agreement with the government in power at

the time – can be liberal or strict.

They make recommendations but local authorities can override.

Produce a set of guidelines for suitability for certain audiences. They

consider:

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Legal: material will break the law, slander, libel, obscene,

children protected, incitement?

Protective: can it cause harm, who needs protecting?

Societal: particular regard to language with larger public

audiences in mind.

Producers will wait until classified to engage distributors and

marketing.

If production not happy – can tweak movie to change the classification.

Distributors always consider the following:

The USP of the film

The Target Audience

Marketing Strategy and Spend (see attached ‘Budgeting the

Release’ sheet)

Exhibition Format (iMax, 3D, 3D)

Release Pattern

Timing (Date of theatrical, Download release, DVD Blueray

Release) – and now multiplatform release – see Field in England

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Marketing

How are films marketed/publicised?

Employed by Distributor – get a marketing agent to get a campaign

together.

Know target audience, USP, release date and genre and fix a budget -

usually spend the same on marketing as they do the production.

Aim – to saturate market to get as many sales, rentals as possible.

Seek out all Revenue Streams to maximise sales across the distribution

area – may need to tweak according to countries.

Define best communications channels for target audience.

- Publicity – internet and other channels =

Synergy/convergence/multi media – 2d and 3d.

o advertising, posters, billboards, tv, virals, multi media,

internet, trailers, teasers

o PR – reviews, interviews, newspapers, editorial ,

competitions, press releases, press packs – usually free

- Promotional – team up with media (radio, TV, print)

- Premiere – big stars with promotions and publicity on the back

of this.

Teasers, trailers – 20 seconds to have maximum effect as bombarded

by messages, images.

Like mini films – encapsulate the film – message, sound, graphics

must fit + captions, voiceovers, music?

Previews – key strategy to marketing, word of mouth, might tweak

campaign on responses.

Merchandising – franchising – other products to generate money at the

time and afterwards.

What impact has the internet had on film marketing and

exhibition?

Nail in the coffin – video and TV were dangerous but not proved fatal

but Film Industry will work with internet/viral world and use it to their

benefit.

Will rental, sales be defunct? – look at HMV, Blockbuster.

Synergy – multi-media approach – film is the seed – the branches reach

out in a myriad of ways to connect with people on variety of levels –

will use it to their benefit.

Multi media converge to blanket cover the market from all angles.

People want an easy connection – must be coherency and continuity –

overall brand image and message from the different synergized media

avenues.

Internet – viral campaigns, games, videos, quizzes, apps – usually

publicity is pushed on us and received...in viral, the consumer will pull

it and click on it (pull it) and send it on (pass)– interactive advertising –

push + pull + pass it on.

Viral = unstoppable, no cure, tumbleweeds, multiplies by its nature

just like the ‘bugs’ you catch.

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Viewers bombarded with images, messages each day – your message

needs to stand out.

Downloading? – illegal might be stopped as legal copies will be

streamed quickly and efficiently.

Can watch films on different devices – advertising will be in different

forms - One phone can receive and do dozens of actions – not just a

phone.

We can produce films too and upload....comment and vote on films –

interactive – indie and art house/specialist might find avenues to

distribute that are cheaper than conventional means. But who will

police, monitor the quality?

Core audience

Families and 15 – 24 (mainly boys).

Chicken or egg came first? – mainstream and tent pole.

Other audiences exist but film revenue must be in line with who might

be watching it...smaller audience = smaller budget.

Target audience for every film depending on classification, genre and

USP .

SEE NEW RESEARCH – older generation want to see older stars?

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Exhibition and Exchange

Where does the process of exhibition and exchange come in the

chain of the life of a film?

After production, distribution, marketing.....it is where and how a film is

actually viewed...cinema.....online,,,dvd etc.....how the audience gets to

see it and where. Its show time.

Not just a cinema now but a plethora of platforms out there.

What are the advantages/disadvantages of seeing a film in a cinema?

Social interaction...night out.....better FX, merchandise...eat and drink......

How might the digital exhibition and exchange of films

negatively/positively affect cinemas?

Negative: cost of changing over equipment, more people watch higher

quality at home, what’s the pint of a cinema as other ways of seeing it.

Positive: more range, more audience input (vote), more types –

concerts, sports, etc. Longer life, cheaper as no projectionist,

How might cinemas and distributors profit from the digital

exhibition of films?

Profit? Cheaper to produce and therefore can produce more and get

them into more venues.....platforms.....

Can increase range of film they can see therefore attract wider

audiences?

What factors do exhibitors need to take into account when

deciding on which films to show?

Audience demographics, psychographics, release of other movies on

similar dates, world events, premieres, release patterns differ

depending on budget and depending on type of release...blanket,

niche....have you the notes.

How and where else can you see a film?

Converged technology from yesterday list, planes, boats, games

consoles, phones etc.

What is a ‘high concept’ movie?

See PowerPoint on blog.

What is a multiplex? What difference does it make to film

distribution?

1950’s a billion attendances then declined with TV and then video.

Pre 1985 cinemas in decline – 1st multiplex in Milton Keynes.

Several screens in one cinema.

Entertainment experience – can book on line.

Usually in shopping malls, out of town although now in city centres as

town planners want to rejuvenate towns.

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Total inclusive experience – comfortable seats, food, drink, shopping,

deaf and blind versions.

Big companies own chains and are owned by conglomerates – ensure

coverage of their own films.

Curzon – more indie and art house, specialist films in town

centres.

Vue/Cineworld/Odeon – mainstream.

They can offer a variety of films – usually blockbusters, main streams

but can offer the more specialist films alongside in the hope that

audience will tire of big movies and want to see something different.

Can afford to offer more minority films.

Thought TV and video would be end of cinema but teens, families and

couples will always want to get out of the house! We are social beings.

Nothing beats the big screen especially now with 3D etc.

Multiplexes are easy to get to and access – comfy, surround sound.

Public not bothered by the name of the cinema – go for the film.

What is exhibition?

Opening weekend is all important to success – if not enough profit it

won’t be a hit!

Always opens on a Friday.

Each cinema will have its own merits – location, price, layout.

Each cinema will choose its films very carefully depending on their

audience demographic in consultation with the distributors.

3D is an immersive experience.

Digital age means – cheaper and less bulky films – multiplexes will be

able to show more along with live streaming of concerts, plays, operas,

ballets, sporting events.

Digital exhibition will increase the audience – reach more and attract

more.

Audiences will be able to vote on what they want to see at the time.

Will put on films dependent on their local demographic i.e. Bollywood,

Oxbridge.

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Piracy

Threat of piracy on exhibition?

Murders the industry – theft.

British market is very vulnerable. USA market so large it is unaffected.

False economy to invest in a pirate DVD as usually bad quality.

Who loses? – less jobs, less revenue, less film industry expansion, less

film!

Erodes the money that comes back to the studio..

Pirates don’t spend anything on marketing as real distributors doing it

for them! Leaches!

Is internet bigger threat than buying pirate copies? – even private

downloading is detrimental as starving the industry of revenue.

Little fish i.e. British and independents will be affected as there will

only be enough money left to make the big mainstream/tent pole

movies.

Piracy

.5 million download illegally every day in the UK.

Murders the industry – theft.

British market is very vulnerable. USA market so large it is unaffected.

Is internet bigger threat than buying pirate copies? – even private

downloading is detrimental as starving the industry of revenue.

PROS

Customer can watch for free.

Watch anywhere, anytime.

Makes own choice.

Could argue though: conglomerates make enough money – they can

afford to make a loss.

Very, very easy to find an illegal copy on line.

Some films do not exist as DVDs so this is the only way to see them.

Raises awareness regardless and doesn’t affect profits.

Encourages film companies to multi platform releases anyway....all buzz

is good buzz

Streaming not illegal.....but downloading onto hard drive is.

CONS

Dangerous to software, viruses.

Big Brother watching – is illegal – could be fined.

Missing footage/bad quality sound and vision/no 3D or IMAX.

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Institutions will lose money and eventually not commit to new projects

– particularly costly high concept, blockbusters as they won’t get their

money back.

You buy an illegal download – criminal activity – how do you know they

are not using this money for crimes you REALLY don’t agree with.

Revenue for UK taxes through copyright decreased so the whole

country loses out.

It is ILLEGAL and therefore a criminal activity – fines, prison sentences

could result.

False economy to invest in a pirate DVD as usually bad quality.

Who loses? – less jobs, less revenue, less film industry expansion, less

film!

Erodes the money that comes back to the studio.

Pirates don’t spend anything on marketing as real distributors doing it

for them! Leaches!

Little fish i.e. British and independents will be affected as there will

only be enough money left to make the big mainstream/tent pole

movies.

SOLUTIONS

Film Industry – anticipating downloading so put in pre-release

strategies.

Digital age – film industry will be forced to work WITH individual

customers to make illegal downloading less attractive and offer them

an alternative, legal version perhaps.

Netflix for example – subscription for watching as much as you want at

whatever time for the small price of having adverts at the start? Film

industry should work with this type of exhibition and exchange.

Producers have to meet consumers half way – the world is different

now. Customers have power and access – to deny them access if foolish

(prohibition culture - Moonshine!) – we will find ways around.

Smaller fines for individual private downloaders.

Slow internet connection for offenders...this might put them off.

http://www.huffingtonpost.com/2013/02/25/six-strike-

system_n_2759408.html

6 strike warning system in place in the USA now....fines and warnings

and slower broadband speeds for repeat offenders.

2005

The major U.S motion picture studios lost $6.1 billion in 2005 to piracy

worldwide.

80 percent of those losses resulted from piracy overseas, 20 percent

from piracy in the U.S.

62 percent of the $6.1 billion loss result from piracy of hard goods such

as DVDs, 38 percent from internet piracy (this is probably much higher

now)

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Piracy rates* are highest in China (90 percent), Russia (79 percent) and

Thailand (79 percent).

The worldwide motion picture industry, including foreign and domestic

producers, distributors, theaters, video stores and pay-per-view

operators, lost $18.2 billion in 2005 as a result of piracy.

The typical pirate is age 16-24 and male. 44 percent of MPA company

losses in the U.S. are attributable to college students.

Can you find some more up to date statistics?

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Digital Technology and Technological Convergence

Digital technology has affected all sectors of the Film Industry –

production, distribution, exchange and exhibition.

See attached diagram for how digital technology has affected the

industry.

Glossary for digital media/converged technology

Converged Technology: 2 or more pieces of media technology exist in

the same kit i.e. PHONE IS ALSO A CAMERA.

Prosumers: two ways of thinking about this:

You produce actual film material yourself and upload it to the

web.

You, the audience, have become pivotal in helping a film succeed

by becoming a ‘productive consumer’ – you help distribute the

film, most of the time unwittingly, for the distributors (clicking,

opening, sharing, commenting, reviewing, previewing,

searching, push/pull/pass).

We do their job for them – for free often!

Democratisation: access to the world of films is so much easier with

social media and through converged technology and WE ALL HAVE A

SAY now.

The film industry is aware of how relevant our views/interests

are so will endeavour to capture as much positivity,

involvement, engagement with the film as possible.

They have to COMPETE hard for our attention though as there is

so much to divert our attention – marketing dream – a ready and

willing audience just waiting to be captured!

But we are a ‘critical’ audience – digital marketing needs to work

hard and smart to beat competitors with innovative and creative

ideas.

They saturate digital media with different ways to attract our

attention and allow us to have our say (democracy) in as many

ways as possible.

Helps ‘indie’ films who can now market their film more cheaply

and compete with the conglomerates on a more equal footing.

Web 2.0 has allowed web users to interact, converse, talk,

interact.

Proliferation:

to increase or spread at a rapid pace – the proliferation of

information about a film is essential for success.

The range of platforms has increased through which a film can

be marketed – websites, twitter, Facebook, you tube, trailers,

TV, apps, games etc (see Device diagram previous).

Interaction:

Audience interaction is desired goal of using converged

technology.

Does this alienate the non-users (‘silver surfers’ really that big a

market?)

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Converged Technology: Social networking, share media, message,

record, write docs, play games, play apps, organiser, maps, gps, text,

watch TV, watch film, email, surf, browse, film, phone, YouTube.

Buzz words: web 2.0 – interaction, engagement, integration,

democratisation, proliferation, synergised media, negates multiple

black boxes, presumes, citizen journalists, competition.

PR

Know your audience

Owned – website, Facebook

Earned – magazine interviews, radio, TV coverage

Paid – adverts, bill boards – when you PUSH

Kay influences – power in the community

Celebrity bloggers – huge influence

Buzz = something quirky – no buts...only yes......remember when we

were planning ideas.....budget not an issue at this stage...

Always plan--- brainstorm your ideas...what, why, who, where, how

and when

Who is your audience and how will you get to them?

Guerrilla marketing – PR stunts

Look at Trends – posters – colours and facing away.

Press Pack – needs to be different – hand delivered, a URL address or a

memory stick.

Press Release must be short and concise – different for a blogger to a

distributor,

Slogan – power of three.

Watch grammar and punctuation.

Emperors New Clothes – Blair Witch Project – people will believe.

Need 3rd party endorsement via PR.

Require an emotional response – this builds relationships...direct

address....

Vine and Snapshot...flood the market quickly.

Steer and leverage...

Tweet after the flashmob....

Citizen journalists....

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Buzz Words - Terminology

1. Media Ownership (Media Conglomerates)

Sony, Viacom, Disney, Comcast, MGM, Universal, X, X, global institutions, USA, indie films, newspapers, radio & TV stations, music labels, magazines, website, technology, Marketing/distributions/production companies, synergy across companies, budgets, block busters, mainstream, tentpole, high concept, premieres, film festivals, search for funding, Channel 4, BBC, lottery funding, foreign films.

2. Synergy & Cross Media Convergence

Convergence i.e. technology on one device, Synergy – different industries combing to elongate the profit making life of a film through marketing strategies, intern, marketing campaigns for distribution and exhibition, conglomerates owning media, merchandise, soundtracks, life outside of the film, domination, saturation,

3. New Media Technologies

Web 2.0, digital distribution, imax, 3d, cgi, social media, prosumers, piracy, multi-platform release, online, dvd, release strategy.......can you think of more?

4. The spread of technology

Fill in buzz words – terminology you might use.

5. Technological Convergence (media gadgets)

Fill in buzz words – terminology you might use.

6. Big industries targeting British audiences

Fill in buzz words – terminology you might use.

7. Your media consumption

Fill in buzz words – terminology you might use.

ALL YOUR RESPONSES MUST INCLUDE CASE STUDIES (EXAMPLES) TO BACK UP YOUR IDEAS/POINTS.

Always try and illustrate with at least 2 contrasting films (an indie v a tent pole made by a conglomerate). Add in other examples from other films too.

T – FILM INDUSTRY TERMINOLOGY

E – EXAMPLES, CASE STUDIES, FACTS, STATS

A – HOW DO THE EXAMPLES, CASE STUDIES ILLUSTRATE/PROVE/DISPROVE YOUR IDEAS?

Good luck!