Channels Of Distribution In The Movie Industry

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An analysis of the optimal distribution scenario for large Hollywood movie studios. This was created for one of my marketing courses at the University of Washington.

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  • It has found that DVD rentals only fell by 3 percent to 5 percent and sales of DVDs actually increased, perhaps because of the increased promotion and fewer used rental discs available for sale.“Taking a customer and moving that person over from rental-physical over moving them to VOD day-and-date is like a 60 to 70 percent margin instead of a 20 to 30,” Mr. Bewkes said. “So it’s about a three-to-one trade.”
  • Channels Of Distribution In The Movie Industry

    1. 1. Channels of Distribution in the Movie Industry<br />Aseem Badshah, BrittniKathan, Katie Keeffe<br />
    2. 2. Iron Man: How would you watch this movie?<br />A. In the theater<br />B. Rent it on DVD<br />C. Watch it On-Demand (pay-per-view)<br />D. Purchase the DVD<br />E. Watch it on Premium Television (HBO, Showtime)<br />F. Watch it on basic cable for free<br />
    3. 3. Current Movie Distribution Model<br />Theatrical Release<br />DVD Rental<br />DVDs for Purchase<br />Video on Demand<br />Premium Television<br />Basic Cable<br />
    4. 4. The Ice Cube is Melting!<br />Movies are like “a melting ice cube. The longer<br />it sits, the smaller it becomes”<br />- Bob Chapek, President of Buena<br /> Vista Home Entertainment<br />
    5. 5. Optimal Distribution Scenario <br />Theatrical Release<br />DVD Rental<br />Video on Demand<br />Optimal DVD Price in this Model is: $22<br />3 Months<br />DVDs for Purchase<br />Premium Television<br />Basic Cable<br />
    6. 6. Changes Are Being Made Downstream<br />Warner Brothers studio will now release movies for video-on-demand systems on the same day they are released as DVDs.<br />Lionsgate will now start bundling an iTunes digital download with DVD purchases<br />
    7. 7. Questions?<br />

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