Annual theatre revenue has reached a flattening trend,

while other entertainment sources take part in consumer mindshare. Marketing costs are a large portion of a movie’s budget, and big time studios such as Warner Bros are looking to digital as a way to stretch their ad dollars. Tertiary entertainment sources are a result of the internet, making digital a complete game changer for the entertainment industry. Theatre audiences are highly digital and connected. Now the movie industry must find where they’re at and have a relevant and engaging conversation with them. Using the online space can reduce ad spend with better consumer targeting, in comparison to a high reach low frequency medium such as T.V.

3-D movies are a niche filled only by theatres, for now. Drawing audiences for unique experiential movies at a premium price. Though competitors like LG’s 3-D televisions threaten this sweet spot.

Piracy and the internet; how has the film industry countered the threat? In the past national and international film releases were staggered – providing an extended

income window. As a result of internet piracy – the film industry has had to release movies on a global level. Preventing the rug from being pulled under the studios before release. Many argue that piracy is a result of the industry itself – because of an environment they have created in interest of greed.

Causing a shift in theatre experience. People treat the movies as a social experience. Higher ticket rates, better home theatres (price, picture, and pause button), forced advertising, and less freedom are all detracting elements in the theatre experience.People now see their home theatre as a main source of entertainment; the digital television is becoming the ultimate home theatre, with streaming content such as Netflix Watch Instantly features - a cost efficient 8.99 a month for an unlimited amount of streaming movies on demand including one mail-in DVD.

The film industry must focus on the experiential element of the movies; and make their advertising social, on demand, and engaging. The catalyst for digital interaction with a movie theatre is based on impulse and related to local showing times and an audience’s spare time.Using digital as a platform for advertising must not only include social, but other elements of the online space. For instance, Facebook connect, twitter, Google Buzz, Integrated Sales, etc, can be integrated into rich media ad’s and enable consumers to get friends to go to the movies with. De-siloing online advertising is the first step to a stronger digital campaign for films, but it will take strategy that is in line with consumer needs.

entertainment industry point of view on the effects of digital

by paris daniell

parisdaniell.com . april 2010 . entertainment industry P.O.V.