1) Large conglomerates like Sony have advantages in producing and distributing films due to their financial resources and ability to use cross-promotion across their subsidiaries.
2) Independent films like Ill Manors have difficulties marketing and distributing on a smaller budget without the resources of a major studio.
3) Independent companies try to compete through viral marketing and niche audiences, while conglomerates use extensive global marketing campaigns and product tie-ins.
2. Media ownership basics:
Media Convergence – Two or more types of media coming together e.g. films
and internet streaming frozen available on youtube 9.99 ill manors 2.49
Synergy – Different elements of a company working together to promote related
products e.g. Frozen on Ice works to promote film, DVD contains frozen on ice
leaflet advert
Conglomerate – Large parent company which owns a number of smaller
companies. Disney second largest conglomerate in the world
Cross media ownership – A company which produces two or more different
types of media e.g. Walt Disney Records and Walt Disney Animation Studios
owned by Walt Disney Studios, films and music.
Subsidiary – Smaller companies owned by a parent company
Oligopoly – When a market is dominated by few companies e.g. Disney,
Universal, Dreamworks
3. Advantages to large
conglomerates
Advantages in production:
• Large conglomerates do not have to collaborate for funding meaning
profits don’t not have to be split out as much
• Able to take risks as have a large amount of finance as their disposal
• Can be more ambitious when making film, for instance can get bigger
stars, more special effects, go to better locations
Advantages in distribution:
• Conglomerates usually have cross media ownership meaning easy
links to distribution after production, for example Sony Pictures
Entertainment (production company) Sony Pictures (distribution
company)
• Able to spend large amounts of finance producing synergy to a film,
works as an effective marketing strategy which also increases revenue,
this is a form of distribution – synergy allows for cross promotion, film
promotes game and game promotes film
• Conglomerates use their subsidiary companies to cross promote films
using different media platforms elements
4. Disadvantages of large
conglomerates
• Films often have to satisfy a large market, meaning that sometimes risks can
not be taken
• Heavy production budget means that heavy marketing will have to follow in
order to ensure sufficient returns on investment and expenditure
5. Skyfall: Media Ownership
Skyfall was a success as Sony were able to use cross media
convergence as Sony conglomerate owns many subsidiary's
in different aspects of media, this means cross promotion
through different media products e.g. Skyfall single
released by Sony classical, which promotes the film, film
includes single so visa versa. Cross promotion through
media convergence increases awareness and raises revenue
for this matter.
6. Problems when producing and distributing
smaller films such as ill manors
• Harder to market smaller films as the production and distribution companies
have less available finance at their disposable, this means less opportunities
for synergy (smaller marketing budget)
• Because of a smaller scale budget than films produced by dominant
conglomerate companies, the film will be less ambitious with less well
known cast, less special effects, and a limitation on location possibilities
• Film will make far less revenue at the box office than films produced by
large conglomerates
• Essential for the film to do well at box office as little synergy means no extra
revenue and lititations to cross promotion and marketing
7. Independent companies
• Harder to get attention and get cinemas to exhibit your film as have
less reputation and financial power in the film industry
• Most British films given a back seat due to vast amount of American
blockbusters
• Ill manors is an example of a British micro-budget feature that was
able to achieve relatively high amount of success as made over 4x its
£100,000 investment (over £450,000) – Produced by Film London
and Microwave (independents)
• Perhaps was able to take more risks in terms of subject matter, large
conglomerate may not be able to do so
8. How do independent
companies compete?
• Independent companies may use viral marketing in order to try and reach their
target audience. For example ill manors created a website to the film, showing
clips, trailers, info and downloads, this is a cheap way of engaging with the
audience, furthermore they used social networking sites such as Facebook and
Twitter a free way of advertising allows the audience to interact by liking and
following pages and posts
9. Ill Manors media
ownership
• Aimed at more of a niche market than larger films with big budgets,
as producers and distributors do not have the money to mass market
ill manors
• The companies which produced and distributed are not conglomerate
therefore cannot withstand losses
• Only advertised in UK not global or internationally marketed as
independent distribution companies have limitations on capital
10. Sony: conglomerate
• Due to the fact that Sony have the finance and power to easily market and
distribute Skyfall globally, companies were willing to pay to have their
products included in the films as a method of marketing, this is known as tie-
ins. (Heineken, Aston Martin, Tom Ford, Omega watches) this brings benefits
in production and distribution as there is was more capital available due to
making these deals. Heineken 28 million.
• Can use viral marketing on a larger scale, website would of reached far more
users than ill manors as they will have had more niche market target segments
• Used cross media promotion, e.g. soundtrack, website, trailers, game, app
• Deal was made with Heineken, synergy of cross product promotion as skyfall
advertised on bottles
• As a conglomerate Sony had the power to market the film using synergy
through promotion different related elements, working to cross promote each
other
• Sony was able to start marketing well before the companies release due to
large amount of capital e.g. release of official photos
• Able to spend heavily on cast, special effects, locations
