Hollywood Studio System
Hollywood Studio System
Studios have less control over films, when released
Multiplexes have their own “popcorn economy” model
Studio System
Three Conflicting Multiplex Businesses
1. Concessions
2. Movie Exhibition
3. Advertising
What is Popcorn Economy?
“The more people we move past the popcorn, the more money we make” (p.196).
Conflicting interests of studios and multiplexes
In 2001, average time a studio film remained in multiplexes was only three weeks.
Word of mouth
Advertising
Switching auditoriums
No legal consequences
Concerns of Studios
Movie length limited—128 mins
Loss of: -Box office revenue
-Concession revenue
Restricted Rating
Reduce the size of theatre audience
Editing of movie scenes
Natural Born Killers – 150 cuts to obtain ‘R’ rating
Enough action sequences for teenage male audience
Creating favourable perception for the product
Word of mouth important
Foreign Markets
Successful opening weekend impresses foreign markets
Cost of initial advertising covered by domestic earnings
Films distributed in more than hundred countries
Eight principal foreign markets provided most of the foreign revenues
Studios rely on distribution arms under their control
International distributors:
Book theatres
Organize marketing campaigns
Circulate prints
Collect money abroad
Complicated Foreign Markets
Studios have to be considerate of:
Local Standards -Censorship
Beliefs and Values
Language Barriers -Dubbing or subtitles -Translation of Publicity materials -Unintended meaning?
New prints for new markets
Scheduling
-Weather—“Wastelands” -Holidays
Advertising in Foreign Markets
“Hook” for advertising messages
Only a fraction of the amount they budget for the U.S and Canada
Unpaid publicity—star appearances
Interviews, appearances & photo sessions
Star appearances—‘Onerous’
Self interest –share of profits
Stars interrupt their work
The Learning Curve
Studios
Studios have less control over films, when released
Multiplexes have their own “popcorn economy” model
Studio System
Three Conflicting Multiplex Businesses
1. Concessions
2. Movie Exhibition
3. Advertising
What is Popcorn Economy?
“The more people we move past the popcorn, the more money we make” (p.196).
Conflicting interests of studios and multiplexes
In 2001, average time a studio film remained in multiplexes was only three weeks.
Word of mouth
Advertising
Switching auditoriums
No legal consequences
Concerns of Studios
Movie length limited—128 mins
Loss of: -Box office revenue
-Concession revenue
Restricted Rating
Reduce the size of theatre audience
Editing of movie scenes
Natural Born Killers – 150 cuts to obtain ‘R’ rating
Enough action sequences for teenage male audience
Creating favourable perception for the product
Word of mouth important
Foreign Markets
Successful opening weekend impresses foreign markets
Cost of initial advertising covered by domestic earnings
Films distributed in more than hundred countries
Eight principal foreign markets provided most of the foreign revenues
Studios rely on distribution arms under their control
International distributors:
Book theatres
Organize marketing campaigns
Circulate prints
Collect money abroad
Complicated Foreign Markets
Studios have to be considerate of:
Local Standards -Censorship
Beliefs and Values
Language Barriers -Dubbing or subtitles -Translation of Publicity materials -Unintended meaning?
New prints for new markets
Scheduling
-Weather—“Wastelands” -Holidays
Advertising in Foreign Markets
“Hook” for advertising messages
Only a fraction of the amount they budget for the U.S and Canada
Unpaid publicity—star appearances
Interviews, appearances & photo sessions
Star appearances—‘Onerous’
Self interest –share of profits
Stars interrupt their work
The Learning Curve
Studios