1. UNIT 2
1. EXTRACT INFORMATION WHICH RELATES TO AND INFORMS YOUR IDEA. EITHER WRITTEN
OR VISUAL
2. CREATE A POWERPOINT PRESENTATION OF THE IDEA FOR A MEDIA PRODUCT
3. SELF-EVALUATION AND PEER FEEDBACK
Task 1
Extract information
Sourcing books, magazines, newspaper articles, leaflets, tv and radio programmes and the
internet
Proofreading
Annoying sources
Research
Research log
Research Trade unions & Associations but they were not relevant in my research, so I
disregarded. I had looked at Producers alliance for cinema and television (PACT), Broadcasting
Entertainment, Cinematograph and Theatre union (BECTU) and the British Interactive Media
Association (BIMA)
I had also researched the British Board of Film classification (BBFC) but again they were not
relevant to my research.
I looked through the AS Business Studies book by Ashwin, Merrills, Thompson and Machin and
found on page 31, useful information about promoting a product. I extracted the following:-
Consumers are faced with so much choice that it is often the business that ‘shouts the loudest’
about its products that gets noticed. Promotion is essential to:
· Increase demand for products
· [...] create, enhance or maintain a brand image
· Raise awareness, emotion or concern for an issue or product
· Maintain, protect or increase market share’
Research notes
Summarise research
Magazine article called ‘Watching TV’ taken from the October 2014 ‘Wired’ magazine
How many people watch TV online? – The Telegraph article
How many people in the UK watch films online – The Guardian
The impending death of traditional TV – BARB
Statistic Brain Netflix statistics
Netflix figures
Cineworld total Revenue/strategy
2. How much revenue does Cineworld receive for food and drink?
Film license research to buy or rent films online
How to set up a webpage
WEBSITE FOR FILM BUFFS
Task 2
Slide 1
Introduction
I have been approached by Cineworld cinemas to review their company in the hope to increase
revenue in order to give an advantage against their competitors. I established that Cineworld could
do this by having an online option and have outlined in my presentation below.
Before I talk you through my pitch to them, I wanted to give you an overview of who they are and
what they do and why I chose this idea…
Slide 2
Why I chose this idea
I wanted to choose a media idea that I would use as part of my daily life. Therefore if I wanted to
use it, then I naturally assume that other people would want to use it too. I also wanted an idea
that we have not previous completed in any other unit, to try and broaden my knowledge in an
unknown subject, gain valuable experience in a different area of media, and to test my own ability
to think of diverse and innovative ideas. I have a passion for films, so a media product that
incorporated a different side to film, other than from the filming perspective, looked appealing.
Slide 3
Client
My client is Cineworld Cinemas. They were founded in 1995 as Cine UK (trading as Cineworld).
They are the second largest cinema operator in Europe with 218 cinemas covering two thousand
and eleven screens. Nine hundred and sixty eight screens and 112 sites are in the UK and they
have 106 cinemas and 1043 screens in six different countries, mainly central and Eastern Europe.
These include multiplexes acquired from 1996, forty two cinemas from UGC in 2004, the O2 in
Greenwich in 2010 and IMAX screens from 2011.
Glasgow IMAX at GSC has one screen - the least number of screens and their cinema at Sheffield
has twenty screens, the highest number of screens at their cinemas. Each cinema shows
mainstream general release films and some cinemas show broadcasts of opera, theatre, live
music and sports.
Slide 4
Renfrew Street in Glasgow is the tallest Cineworld cinema in the world and the busiest in the UK.
It is 203 feet (62 metres) tall, with 4,300 seats and attracts over 1.8 million visitors per year.
All Cineworlds sell food and drink such as popcorn, nachos or hotdogs and most sell pick and mix
and Baskin Robbins ice-cream. Some cinemas have Starbucks coffee outlets inside their venues.
In 2014 Cineworld introduced an allocated seating system, starting as a trial in selected sites
including Wembley, which has since rolled out to all their cinemas.
This is my pitch to my client, Cineworld…
Slide 5 - 9
Pitch
Watch films Online
3. You have a very successful brand that gives customers the option to watch up-to-date films on
your premises. On your main Cineworld plc website under strategy it states that you aim ‘to
continue to expand your estate and look for profitable opportunities to grow’ (Cineworld plc).
One way of doing this is through watching films online. This is a fast growing business that is
worth £317 million in the UK alone. Your films could be watched by these customers which would
not only highlight and promote your brand throughout the UK and even worldwide, but it would be
increased revenue for very little costs. As you can see from the Ofcom report, over the last ten
years people accessing the internet anywhere has risen from 59% in 2005 to 86% in 2014.
The amount of hours that people in the UK spend online has also increased from just less than 10
hours in 2005, to 20.5 hours in 2014.
This shows a healthy increase in the amount of people that have access to the internet. Therefore
if they have access to the internet they have the potential to watch your films online.
Why Online?
Promote brand
Increased revenue
Still have screen advertising revenue prior to commencement of film
Advantage against competitors
Minimal costs
Why Choose My Idea?
Not having the option to watch the latest films online, in my opinion is a missed opportunity, but
one that I can help with. Films online would not only give you a distinct advantage against other
cinema competitors but it would give you a strong technology platform within the movie world to
secure Cineworld for future generations.
Increased Revenue
4. My concept is like Netflix meets modern day cinema. Customers can watch up to date films in the
comfort of their own home. They can pay for a monthly membership, pay per film (like they would
if attending the cinema in person) or download the movie to keep.
You could also have an option where the two monthly memberships of attending the cinema and
the online monthly membership could be combined. This way the customers can attend the
cinema if they so choose or they can watch unlimited movies at home.
Minimal Costs
I used your website to establish how I could incorporate my idea to enhance your brand. Because
your website has dropdown menus at the top, I could easily add another dropdown menu to
incorporate ‘Watch online’ after the ‘Book with daily planner’.
Slide 10
Possible webpage layout below:-
Prices:
Monthly membership
Pay per film
Films to purchase
Combined unlimited cinema and online
Click on chosen film.
Webpage forwards customer to payment page to either key in monthly membership number linked to email
address, or option to purchase film or pay to watch once.
Slide 11
Product variations
Monthly membership £16.90
Pay per film variable
Films to keep variable
Combined unlimited cinema and online £25.00
Drop down menus showing costs for each
one. Click on chosen option prior to film
choice.
For online assistance, please ring
0800 123 456
5. You already have the ‘unlimited card’ at £16.90 per month for an unlimited amount of movies to
watch at the cinema, so my idea would incorporate this and have the option of unlimited movies at
home for the same price of £16.90 per month.
Slide 12
Target Audience
How many people go to the cinema?
In 2014, you had 82.9 million admissions (Cineworldplc.com) and in 2015 you had over 93 million
admissions across all your cinemas.
Slide 13
How many people watch films or programmes online in the UK through Netflix, Amazon
Prime or Sky’s Now TV?
Approximately 6 million people in the UK watched programmes or films online in March 2015
through Netflix, Amazon Prime or Sky’s Now TV. By the end of 2015 it was nearly 8 million people.
Slide 14
People watching TV or Films online at least once a week according to the Ofcom survey
By age
1609 240 277 319 265 228 280
This information was taken from the Ofcom website to show how many people in the UK watch TV
or films online at least once a week out of 1609 people surveyed in 2007 and in 2014. Overall 27%
of people asked, watch TV or films online at least once a week, with the highest figure at 39% for
16-24 year olds. Surprising 12% of over 65 year olds use the internet for this activity and all age
groups show an increase since 2007 of between 11 and 25%.
Slide 15
By socio-economic groups
Group AB is the highest figure at 30% to watch TV or films online at least once a week and group
DE is the lowest figure at 22%.
Slide 16
Overall 27% of people in the UK watch TV or films online at least once a week and 33% watch TV
or films less than once a week online.
Overall 60% of people in the UK use the Internet to watch TV or films online.
6. Slide 17
SWOT – Strengths, Weakness, Opportunity, Threats
Strengths
Comfortable at home - Can stay in the comfort of your own home to watch up-to-date films
Affordable – Less expensive to have friends round for a movie night to watch a film for one
price as more costly if all friends went to the cinema.
Good selection of recent films
Easy online system
Large target audience
Health/personal reasons - Good idea if you don’t have any friends that like going to the
cinema or agoraphobic
Help for over 65’s to encourage use by possibly reduced rate on proof of age and address
at sign up.
Slide 18
Weaknesses
Less people might attend the cinema if watching films online.
Food/drink revenue might decrease if less attendance.
Not everyone might have the internet but through public awareness hopefully more people
will start to use the internet.
Slide19
Opportunity
Increased revenue through membership fees and film hire/purchases
Gift cards for food, drink and films online and in the cinema
Broaden target audience by advertising films for all ages.
Expand throughout UK and to other countries through online use
Slide 20
Threat
Competitors
Netflix
Over 5 million UK households watched Netflix at the end of 2015.
The most recent films are 2013; they don’t have up-to-date films that you could offer.
Netflix is the world’s leading Internet television network with over 81 million members in over 190
countries enjoying more than 125 million hours of TV shows and movies per day, including original
7. series, documentaries and feature films. Members can watch as much as they want, anytime,
anywhere, on nearly any Internet-connected screen.
Amazon
Amazon Video allows you to buy or rent digital movies and TV shows to watch instantly online.
The latest films are 2015 and cost around £4.45 to rent. They are watched once and have a
timescale of 48 hours to watch the film once it has started. They have a yearly subscription of £79.
Sky movies
(BFI)
Customers are paying £37 to £53 for movies on Sky but as you can see from this table the highest
ratings for the top ten feature films shown on Sky movies in 2014 are much older films than shown
at the cinema. Although Sky typically show films that are more than a year old. The advantage of
your films is that they are all recent films that people want to see.
Now TV
Has 1,000 movies in total showing 2015 films or older for £9.99 per month. Again this does not
offer recent films.
Slide 21
Requirement
Skills needed to produce
I design the webpage
Equipment/Technology needed to produce
Camera, lighting and sound equipment to produce new pictures of films and food and drink
for the webpage
Computer
Access to website and internet
Marketing strategies to promote
Advertise
Social media sites
Online
In the cinema’s
Through partners
Time to produce
8. Schedule to be discussed and mutual agreement reached but could start as soon as
possible
Future requirements
Assistant support for website either by phone or help online
Financials: Monitoring of food and drink, cinema attendance and online subscriptions/use
Slide 22
Cost
Cost to produce V potential income
Minimal has already have website, films and licences in place. Small expenditure for the webpage
design and upkeep of the webpage, but upkeep could be incorporated with website upkeep to
avoid additional staff.
Cinema revenue in 2014 was £619.4million and £705.8 million in 2015. This shows a healthy
upturn of £86.4 million, 13.9% from 2014 to 2015.
Potential income is a market share of the £317 million industry in the UK alone.
Slide 23
Unique Selling Point (USP)
Increased revenue from online
Increased revenue by screen advertisements in the cinema and online
Have the films anyway, so not much extra cost to show online
No other competitor has recent films – all 2015 or older
Large target audience
Brand marketed globally
Slide 24
Future projections - How much do audiences spend on food and drink?
In 2015 your worldwide customers spent £162.7 million, on food and drink and £451.6 million on
attending the cinema.
In the UK customers spent £107.2 million on food and drink and 311.9 million on attending the
cinema. Worldwide and UK figures show food and drink to equate to 23% of revenue. (Cineworld
plc)
This would need to be monitored to establish a pattern to see whether the food and drink
decreases in revenue after online webpage is live.
If this is the case and less people are attending the cinema due to watching films online, which
results in a decline in food and drink spending, then it is still possible to create even more
additional revenue from the following two options:-
1. Move to smaller venues with less staff to save overheads, in addition show one film per
screen as opposed to lots of screens for a particular film.
9. 2. Same venues but remove one or two screening rooms to create more food and drink
options to ensure customers stay on the premises for longer, therefore spending more
money.
Slide 25
Conclusion
Modernising Cineworld in today’s market to give a competitive edge, by showing your films online
for very little costs.
Result is increased revenue, targeting a wider audience and enhancing your brand.
Slide 26
If you require any further information please contact me directly or visit my blog:-
Cbrandmedia.blogspot.co.uk
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