Section B Institutions and Audiences Revision Guide

AS Media Studies – Section B: Institutions and Audiences Revision
Additional resources on www.mediastudiesnwcc.blogspot.com (follow AS Media Institutions link at
the top of the page). Twitter - @nealewademedia Email – jhibbert@neale-wade.org
Media Ownership
The concentration of media ownership has led to the media industry being dominated by a
small number of major global media conglomerates such as Time Warner, Disney, and News
Corp, creating an oligopoly.
In the film industry the market is dominated by the Big Six studios, such as Warner Bros.,
20th
Century Fox, and Walt Disney Pictures. Each of the Big Six studios is a subsidiary of a
major conglomerate, for example 20th
Century Fox are a subsidiary of News Corp.
The Big Six Studios took 63% of global box office revenue in 2012, and take around 70-75%
of UK box office revenue every year. As the studios are all subsidiaries of huge
conglomerates with billions of dollars of annual revenue this allows the studios to have big
budgets, meaning they can afford to use spectacle to appeal to a mass audience by using
the most advanced special effects, impressive set design, and big name stars. This makes it
harder for independent film production companies to compete.
‘The Avengers’ (2012) is an example of a typical studio blockbuster. Produced by Marvel
Studios, a subsidiary of Disney, and distributed by Walt Disney Pictures the film was made
on a budget of $220 million. As a result the film made extensive use of special effects with
over 2,000 effects shots, including use of CGI and motion capture (to create the Hulk
character). The film also has mass audience appeal typical of Hollywood products. The film
appeals to a wide range of different demographics by including characters from a mixture of
age groups, ethnicities, and genders. The film is also pre-sold as it is based on a successful
series of comic books. Using superheroes makes it easier for the film to appeal to a global
audience as the characters are archetypes that can be easily recognised, and are not
culturally specific. ‘The Avengers’ demonstrates the mass audience, blockbuster model
used by the major studios which allows them to dominate the film industry. This benefits
the studios, but makes it difficult for independent, and non-American films to achieve global
success. This also reduces the variety of types of films available to audiences.
Cross-media convergence and Synergy
Because the Big Six studios are all subsidiaries of major conglomerates they benefit from
cross-media convergence and synergy. The Walt Disney Company is an example of cross-
media convergence as it produces and distributes a wide range of different types of media.
Disney is made up of five different divisions, including Walt Disney Studios (film studios,
record labels), Media Networks (television channels), and Disney Interactive (video games,
web-based media).
Disney have been described as the ‘masters of media synergy’, and have developed a range
of multi-platform brands, such as Hannah Montana which included a television series,
theatrically released film, soundtrack albums, magazines, merchandise, and online games.
Using synergy in this way helps Disney to maximise ancillary revenue and maintain brand
awareness.

Disney made extensive use of synergy to promote the release of ‘Toy Story 3’ (2010). This
included holding a Toy Story Day on the Disney Channel prior to the release of the film, and
the release of a video game by Disney Interactive. The key advantage of synergy is that it
maximises revenue whilst promoting the brand, and benefits all the subsidiaries involved.
The Toy Story Day would attract viewers to the Disney Channel, whilst simultaneously
promoting the release of the film.
The use of synergy and cross-media convergence was key to the success of ‘The Avengers’
(2012). Disney bought Marvel Entertainment is 2009, and oversaw the release of a series of
films such as Iron Man, and Hulk which built towards the release of ‘The Avengers’ film. An
extensive range of merchandise for the Marvel characters helped to increase brand
awareness and generate ancillary revenue, as a result of synergy between the studio
division, and the Disney Stores and merchandise divisions.
The development of the Avengers Alliance Facebook game is another example of cross-
media convergence and synergy, with the Disney Interactive division developing a game to
promote the Avengers film through social media.
After the success of the ‘Avengers’ film Disney produced two television programmes, one of
which is shown on the Disney XD channel, and one (Agents of S.H.I.E.L.D) which is shown on
the ABC network, another subsidiary of Disney. Disney is using the popularity of the
Avengers’ film franchise to encourage viewers to watch their television subsidiaries. The
television programmes will also maintain interest in the film franchise before the release of
Avengers 2 in 2015.
This demonstrates the way in which cross-media convergence and synergy allow major
conglomerates to maximise revenue from a film brand, and help a range of subsidiaries to
be successful. The successful use of synergy is another factor in the continued dominance
of the film industry by the Big Six studios, as independent companies do not have the
opportunity or resources to use synergy on the same scale as the studios.
British Film Industry
The British film industry is much smaller in scale than the American film industry.
Independent British production companies such as Warp Films tend to be relatively small.
As a result production companies often work together, and may rely on funding from
government organisations such as the British Film Institute (BFI).
‘The Selfish Giant’ (2013) is an example of an independent British film. It was funded by
Film Four and the BFI with a budget of £1.4 million, and focuses on two working class boys
in Bradford. The film is culturally and regionally specific, and includes two unknown actors
in the lead roles. As a result it lacks the mass audience appeal of studio films such as the
Avengers. The Selfish Giant made £300,000 theatrical box office, showing the film made a
loss. This reflects the fact that according to research by the BFI only 4% of low budget (less
than £2 million) British films make a profit. The contrast between the social realist style of
The Selfish Giant, and the mass audience appeal of blockbusters such as The Avengers is
another factor in the dominance of US studios.

One of the challenges facing British films is distribution. In the UK film distribution is
dominated by the Big Six American studios. They are consistently the top six distributors in
Britain every year. As the studios are vertically integrated in terms of production and
distribution this makes it harder for non-studio films to compete. The effect on distribution
is suggested by the fact that films distributed by Disney such as The Avengers, and Captain
America: Winter Soldier (2014) opened on wide release in the UK on over 500 screens, The
Selfish Giant opened on just 35 screens. However, developments in technology affecting
distribution may make it easier for independent films to reach their audiences.
‘A Field in England’ (2013) demonstrates how new technology can help the distribution of
independent British films. The film’s budget of £316,000 was financed by Film4’s Film4.0
division. The low budget nature of the film fitted Film4.0’s innovative model. Film4.0 was
created to find new ways of connecting talent and ideas to audiences using digital
technology. The low budget also reduced the financial risk involved. P&A spend of
£112,000, including £57,000 from the BFI (British Film Institute).
A Field in England used day-and-date release, being released simultaneously on 17 cinema
screens, DVD, Blu-Ray, Transactional VOD (iTunes etc.), and free-to-air television through
Film4. Using this release model built momentum around a single release date, maximising
the marketing campaign’s effect. Using a range of different release platforms helped the
film to reach its audience. Nearly 400,000 people watched the film on free to air television
through Film Four. Around 10,000 people bought or rented the film either using TVOD or
on Blu Ray/DVD, and the film took £50,000 in theatrical box office. By making the film
available in all formats simultaneously it allowed the audience to watch it using the most
convenient platform for them. The unusual nature of the film’s release also generated
publicity in newspapers and broadcast media. This demonstrates the benefits of day-and-
date release for independent film releases. It also suggested that fears that day-and-date
release will reduce theatrical box office are exaggerated, as 77% of the cinema audience for
the film knew they could watch the film for free on television but wanted to pay for the
experience of watching the film in the cinema.
Technology
Production Technology
3D
Technological developments have been central to the revival of 3D. Whilst there have been
3D booms in the past, notably during the 1950s and 1980s, these have been short-lived due
to image-quality issues. The emergence of digital technology has gone a long way to
tackling these problems. The invention of the Reality Camera System by James Cameron
and Vince Page allowed them to develop a camera, the Sony 3D-T, which captured
stereoscopic vision in a way that mimicked the human eye. In order to do this they used
lenses which telescoped the image allowing them to use two HD cameras in a single rig,
which replicated the human depth perception by being only 70mm apart.

These cameras allowed James Cameron to use 3D effectively in the production of ‘Avatar’
(2009) to create a spectacular visual experience. This was the basis for the film’s huge box
office success, achieving the highest worldwide box office gross with $2.7 billion. One of the
benefits of 3D for studios is that more money can be charged for tickets (usually £2/3 more),
meaning 3D films can generate more money from less tickets. This success was one of the
economic factors that led to the revival of 3D. Following Avatar’s release a large number of
films were released in 3D, including Toy Story 3, Alice in Wonderland, and The Avengers.
Another factor that drove the revival of 3D was the threat of online piracy. The rapid
expansion of broadband has allowed audiences to stream or download film releases for free
from piracy websites, which is estimated to cost studios billions every year. Using 3D was
seen by studios as a way of producing a film that could not be pirated effectively due to its
use of 3D technology. Furthermore, in order to get the full 3D experience the audience
would have to watch the film in the cinema. Whilst the box office success of Avatar
suggests its use of 3D technology was effective in encouraging audiences to watch it
theatrically, it was also the most pirated film of all time, being watched illegally online over
21 million times in the year after its release.
The popularity of 3D peaked in 2010 when seven of the top eleven films globally were
released in 3D. 3D ticket sales accounted for 24% of UK box office revenue in 2010. Since
then the popularity of 3D films has declined, falling to 18% by 2012. This has seen fewer
films being produced in 3D, with 43 3D films released in the UK in 2012 down from 47 the
year before. Whilst 80% of tickets sold for Avatar were in 3D, that had dropped to 52% for
The Avengers in 2012.
From the audience’s point of view 3D offers what The Hobbit director, Peter Jackson, calls a
‘more immersive experience’. Especially in films such as Avatar and The Hobbit 3D helps the
audience to be drawn into the world of films. However 3D tickets are more expensive, and
3D can make the image appear darker. 2D films which have been cheaply converted to 3D
are often ineffective and may have contributed to the decline in the popularity of 3D.
Technological developments in both film production and exhibition were essential to the
revival of 3D, coupled with the economic success of Avatar and the attempt to use 3D to
counteract piracy. Whilst 3D appears to have peaked, it seems it has gone beyond the
novelty status associated with it in the 1950s and 1980s, and given the large number of 3D
screens globally film producers are likely to continue to use 3D. Audiences appear to have
become more selective in terms of which films they watch in 3D, only being willing to pay
for 3D tickets if the experience is likely to justify the additional cost.
CGI/Motion Capture
Use of CGI has become a common feature of Hollywood studio blockbusters. Films such as
The Avengers, and Captain America: Winter Soldier feature over 2,000 effects shots, and in
Tron: Legacy (2010) 90% of background shots were created by CGI. For filmmakers CGI
offers the opportunity to create visually spectacular images, which provide audiences with a
more impressive viewing experience. The audience appeal of films that use lots of special
effects is demonstrated by the box office success of films like Avatar and The Hobbit.

However the high costs involved mean that only major studio productions can afford to use
advanced special effects extensively, creating a barrier to entry to independent producers.
Distribution
Digital Cinema Projection
Digital cinema projection involves in the distribution and projection of films in a digital
format, instead of distributing films on 35mm film reels. Over the last decade there has
been a huge increase in the number of digital screens around the world. This was largely
prompted by the economic success of Avatar (2009) which required digital projection
facilities in order to be screened in 3D. This encouraged cinemas to rapidly convert in order
to be able to make the most of any subsequent 3D blockbusters, despite the cost involved
(around £100,000) for a digital projector. 90% of US and UK screens are now digital, and in
January 2014 Paramount became the first major studio to stop distributing films on 35mm
in the US with The Wolf of Wall Street being their first digital only release. Two-thirds of
cinema screens worldwide are now digital.
The increase in digital screens has been largely driven by technological and economic
factors.Distributing films in a digital format to cinemas significantly lowers costs. Each
duplicate of a 35mm film reel costs around £1,500, whereas digital distribution costs around
a tenth of that. Duplication of 35mm cost studios around £100m in 2002, with further
freight costs of £30m, meaning the introduction of digital cinemas has allowed studies to
save a large amount of money.
Generally, now digital prints of a film are sent on a hard drive holding a data file of 150-200
GB. The projectionist uploads the film onto the digital projector and creates a menu for its
projection. A digital key is used to safeguard the film against piracy. Another benefit of
digital projection is that unlike 35mm the film print will not deteriorate over time.
Independent productions also benefit from digital cinema. High prints and advertising costs
were widely seen as barrier to independent films being widely distributed, and in the UK
independent releases were rarely shown on more than 30 screens in the opening weekend
of release. This contrasts with major studio releases that generally open on 400-500 screens
in the UK.
Afactor that has supported the development of digital cinema in Britain was the Digital
Screen Network initiative run by the UK Film Council in 2006. The UK Film Council was an
organisation funded by the government to support film in Britain. They spent £12 million to
support the conversion of 250 screens around the UK to digital. This was especially
beneficial to independent cinemas, and smaller chains such as Picturehouse. The aim of
the scheme was to broaden the choice of films shown at cinemas, and help independent
and foreign films to receive wider releases. Digital cinema also benefits audiences by
increasing the availability of accessible cinema, with subtitles available for the hearing
impaired and audio-description for the visually impaired.

Whilst the Digital Screen Network has gone some way to widening the choice for film
audiences, offering them the opportunity to see more independent films and a range of
cultural events, film distribution in the UK is still dominated by US studios. Major studio
releases open on wide release of around 500 screens (The Avengers, The Lego Movie), in
contrast to independent British films such as The Selfish Giant which opened on just 35
screens.
Piracy
The economic effects of online piracy are significant. The Motion Picture Association of
America (MPAA) estimated in 2005 that online piracy cost the film industry $7 billion a year
in lost revenue. Further evidence of the economic impact of online piracy can be seen in the
rapid decline in DVD sales. Sales of DVDs peaked in 2004, and have declined since then.
Given that this coincides with the expansion of high speed broadband internet access it
seems likely that a contributing factor to declining DVD sales was the ready availability of
films through online piracy. DVD sales used to account for around half of a studio’s profits
on a film. The 30% decline in DVD sales since 2004 has posed a significant economic
challenge to the film industry. This is suggested by the fact the major studios are now
producing less films now than they did 10 years ago, before the emergence of broadband.
Loss of ancillary revenue from DVD sales has meant studios are finding more difficult to
finance films. In 2012 Disney released 13 films, compared to 22 in 2002, whilst Sony
released 18 films in 2012 compared to 31 in 2002. Clearly internet piracy poses a significant
threat to the film industry.
In order to tackle piracy film institutions are trying a range of tactics. This has included
increased use of 3D, use of legal online VOD platforms and shortening distribution
windows, as Disney did with the UK release of Alice in Wonderland making it available on
DVD 12 weeks after theatrical release, instead of the usual 17 weeks. This helps to tackle
piracy as consumers often pirate films as they do not want to wait for the film to come out
on a home entertainment platform. Some films such as Mum and Dad, and A Field in
England have used the day and date release strategy, making the film available on all
formats in the day of its release, thereby removing the need to pirate the film. This strategy
is generally best suited to independent films, though Veronica Mars became the first film to
be distributed by a major studio to use day and date release. Early electronic sell-through is
used by studios to make films available to buy by digital download four weeks before their
DVD release, a strategy used for the release of Iron Man 3.
Whilst online piracy has a significant impact on the film industry, it does appear that with
the development of online platforms and devices allowing consumers to access content
legally that the threat of piracy may be declining somewhat.
Video on Demand
Technological convergence has led to the rise of Video on Demand (VOD) as a distribution
method for films. Convergent technologies such as tablets, smartphones, laptops, and
smart TVs allow the audience to access film content via the internet.

The popularity of Subscription Video on Demand sites such as Netflix and Amazon Prime
Instant Video has seen the market for online VOD in the UK increase by 123% in 2012. The
proliferationof online platforms including SVOD, and Transactional Video on Demand sites
such as iTunes and Blinkbox, has boosted the market. Technological factors have also driven
this growth, with broadband penetration of 76% in the UK, and average speeds increasing to
12 Mbps making it easier to access film content online. The development of internet-
enabled Smart TVs, and the popularity of tablet devices have also underpinned this growth.
VOD benefits independent producers as it lowers distribution costs, and allowing more films
to be distributed digitally to their audience. An example of this is the British film ‘Pulp’
(2012) which became the first film to premiere on the Xbox (an example of technological
convergence). ‘Pulp’ was not given a theatrical or DVD release, meaning that games console
platform allowed it to be distributed to an audience.
Independent producers have made use of the opportunity to use VOD platforms as part of
day-and-date release strategies which maximise audience awareness around one release
date. Examples include ‘Mum and Dad’ and ‘A Field in England’.
Funding
The development of online technology offers new ways in which films can be funded. Some
films now use crowdfunding to obtain funding from the audience using websites such as
Kickstarter. An example of this was the film ‘Veronica Mars’ (2014). Based on a cancelled
television show the producers were unable to get studio backing for the film, so used
Kickstarter to encourage the audience to pledge money in return for a variety of rewards.
The film received $5.7 million in funding, and went on to be distributed by Warner Bros.
This suggests that online technology allows filmmakers to interact directly with their
audience in order to secure funding, making them less reliant on established studios. For
audiences offers the benefits of a sense of involvement in the project.
Viral marketing and the use of social media are examples of how technology affects the
way in which films are marketed (see below).
Marketing
Synergy is an important way in which the major studios promote their films. Synergy helps
the studios to maintain their dominance over the film industry as independent companies
are unable to use synergy to the same extent as the Big Six studios (see above).
Viral Marketing
Viral marketing involves using the internet to spread promotional messages (such as
videos), relying on the audience to forward them on. The benefits of viral marketing are
that it is significantly cheaper than other forms of film advertising (e.g. broadcast and
ambient media), it engages the audience, and can create hype around the release of a film.

Viral marketing was used effectively to promote the release of the independent US horror
film ‘The Last Exorcism’ (2010). Using the social media website Chatroulette users began
online chats with a teenage girl who then appeared to become demonic. A video of user
reactions was then released on YouTube, gaining over 8 million views. This was a cost
effective way of generating interest in the film and creating word of mouth. The use of
websites such as Chatroulette and YouTube also helped the film to appeal to their target
demographic of young adults.
Viral videos were also used by Disney to promote the release of ‘Toy Story 3’. A fake advert
for one of the toys, and an interview called Groovin With Ken were posted on YouTube and
were viewed several million times. As Disney wanted to target people in their twenties as
well as their usual target audience of children, using social media and viral was effective in
achieving this aim.
Social Media
Social media has become increasingly important in the marketing of films. Using social
media offers the benefits of being cheap, interactive, and immediate. It helps the audience
to feel involved with film, can also be used to data mine information about the
demographics of the audience.
The ‘Girl Who Played With Fire’ (2009) is an independent European film that received
funding from the UK Film Council to support its use of social media to promote the film’s
release. A Facebook game was developed in which users ‘investigated’ their Facebook
friends by answering about them. Their scores would then be posted on their Facebook
wall, and appear on their friends’ news feed. This is an example of passive advocacy as the
audience are raising awareness of the film’s release.
A Facebook game was also used to promote the release of ‘Avengers’ (see above), with the
Avengers Alliance game having 1.4 million daily users prior to the release of the film.
As part of the marketing campaign for ‘Veronica Mars’ (2014) the official website included a
Race to the Box Office page in which users could score points every time they mentioned
the film, liked or re-tweeted official pages, and gain access to exclusive content.
Exam Advice
Remember to leave 45 minutes to answer the Institutions question.
Relate your answer to the question set.
Use terminology.
Use specific examples.
Evaluate the points you make.
Refer to your own experience as a consumer.
Include a conclusion summing up and evaluating your argument.
Get your facts right.

Section B Institutions and Audiences Revision Guide

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Section B Institutions and Audiences Revision Guide