...Movie Rental Industry in 2008: Netflix and Blockbuster battle for Market Leadership Strategic Issues Netflix has limited streaming via online downloading. They also have limited market segment. Blockbuster does not maintain enough inventories of new releases, and also needs to expand into online downloading. Analysis Industry’s Dominant Economic Features The movie rental industry’s market size is relatively large with $24.9 billion in 2007, which is up from $22 million in 2004. The growth rate will continue to rise with the demand for movie entertainment. There are a few numbers of rivals, but the industry is consolidating to an even smaller number of competitors. Today the scope of competitive rivalry is a globalized industry but in the beginning of this industry it would have been local, regional and national. The numbers of buyers have been increasing since 2000 with the introduction of new technologies has rapidly increased consumer opportunities to view movies. Consumers could obtain movies through various channels. They could purchase them through retailers such as Wal-Mart, Best Buy, and Amazon or they could subscribe to Netflix or Blockbuster and have movies directly mailed to their own homes. They could also subscribe to any cable movie channel to order movies instantly streamed to their TV’s on a pay-per-view basis. The degree of production differentiation is low since movies are a commodity. Customer can either get their product through digital...
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...Business Research Methods (2014) Decreasing number of box office hits per year in Telugu film industry (Tollywood) - analysis and recommendations Business Research Methods Submitted to Dr Arun Abraham Elias Victoria Management School Victoria University of Wellington New Zealand Submitted by M Rohit PGP/17/151 – Section C Indian Institute of Management, Kozhikode India M Rohit (PGP/17/151) Page 1 Business Research Methods (2014) Abstract This paper talks about the emergence of Telugu films and subsequent growth and development of Telugu film industry (Tollywood). Indian film industry on a whole is facing serious issue in the decrease in number of hits per year. An attempt has been made to study this trend in Tollywood. Entertainment industry is a major source of income in the Indian GDP. Hence this topic of research has been chosen. The industry has seen transformation from Puranas to mass folklore to technological breakthroughs in the form of colour films and many more innovations. Tollywood holds a special place in Indian film industry in terms of quality of films, number of films released, box office collections and cultural and political impacts on India. This paper approaches the industry with behaviour over time analysis and then identifies various stakeholders involved in this complex network. The paper gives a brief idea of the effects of various parties on the industry. An attempt has been made to address various issues relating to technology,...
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...Marketing Research Marketing Research is imperative to Disney Pixar’s success. Marketing research is the process in which managers perform to gather information effectively to introduce their products and services to their target market. Although the amount of time required for this research depends on the size of the target market and the company's line of business, there is a defined process used to implement the company's products or services. This process includes 1) assessing information needs, 2) developing needed information through internal databases, 3) implementation of marketing research, 4) organization of ideas, and 5) distributing and using information. Therefore, marketing research is important to developing a marketing strategy because it assesses what steps a company needs to take to reach their target market. Therefore, marketing research is important to developing a marketing strategy because it assesses what steps a company needs to take to reach their target market. The Internet has helped with collecting marketing data through online focus groups, Internet surveys, and experiments. The marketing research process also involves collecting and secondary data. Secondary data involves re-checking internal and external secretarial and marketing procedures, such as sales invoices, warranty cards, and published material. Therefore, an efficient means for data collection will assist this process. As defined within Marketing Research, "scaling is the process of creating...
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...12/2/2012 Product Reassessment: Blockbuster Blockbuster Corporation has to reposition them-selves in order to sustain growth in slow market and to correct past mistakes which lead to the company’s bankruptcy (Lamb, Hair, & McDaniel, 2012, p.144). The repositioning of Blockbuster has to change consumer’s mindset of believing that it is a failing entertainment company and not being able to meet the needs of consumers. Blockbuster can be repositioned from a family focused bricks-and-mortar video retail business into targeting each distinct generation with a focus on their lifestyle and customizing services to fit their interest. The different types of generations include Gen Z, Gen Y, Gen X, Baby-boomers, and Greatest Generation. Generation Z known as the internet generation have grown up using communication technology such as internet, cell, phones, and digital cameras which is mostly funded by their parents who are also knowledgeable of similar (n.a., 2010). Born around 2001 and up, this group is the youngest in which our marketing will be focused on which will call for more market studies because of them being very young. Generation Y born between 1980-2000, are also known as the Millennials make up 27.8% of the U.S. population and are very fluent in digital technology (n.a., 2010). This generation is a great target market because they are 75 million strong, have additional disposable income due to support of their parents, very receptive to campaigns on the internet...
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...strategy had a huge hand on the initial success of Netflix. It used a market-oriented pricing approach and set its price based on analysis and research of the target market. Some of the factors incorporated by Netflix into its pricing strategy that contributed to its success were: i. Rent 3 movies at the cost of one VOD rental ii. Eliminated Late Fees / penalty pricing approach adopted by Blockbuster and other rental stores iii. Transitioned from market-oriented pricing to value-based pricing through the introduction of unlimited rentals iv. Movie recommendations to everyone whether / not they subscribed to Netflix services Netflix captured the market for initial DVD player adopters by providing customers with DVD formats that weren’t available in traditional movie rental stores yet. Netflix offered 3 movies for a month at $17.99 while rental stores offered a single hit movie at $18. The approach Netflix took to eliminate late fees and have a movie with the customer at all times helped Netflix capture market share instantly. As the stocking for DVD’s grew more complex, the pricing remained the same but they provided an unlimited rental policy that greatly appealed to customers that were concerned with late fees and limited rentals. Hence as the market share grew Netflix successfully transitioned its pricing strategy from a market-oriented pricing approach to a value-based approach adopted by market leaders like Amazon. 2. What other measures did management take...
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... less desirable despite heightened convenience. In regards to price, Netflix rental system requires a monthly subscription for $9.00 which includes unlimited downloads for that period. While ourage frugal Netflix offers a different approach customers, it promotes a more loyal customer than redbox and Blockbuster Express with its base. in-home streaming of movies. Netflix streaming has the advantage of being 19 | Page Movie Renters In the past few years, researchers have studied the spending habits of DVD rental users. In general, Americans who rent movies more often are more likely to see films within the first two weeks of release (37). Simmons went on to report that from those who watch movies in the first two weeks, they will then rent from Blockbuster, Hollywood Video, and Netflix (37). Redbox, in particular, has been steadily increasing its amount of rentals. Its target market, according to NPD...
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...COMPOSING A MARKETING PLAN COMPONENTS OF A MARKETING PLAN Executive Summary Movie 24-7 is going to be a television channel that will broadcast Hollywood Movies of all categories including Action, Drama, and Comedy. We have chosen to be a Hollywood movie channel as there is the large market that we can cater because of the ever increasing interest and demand for English films among the youngsters. Movie 24-7 will play movies at the request of its viewers. It will be available on most cable and satellite providers at no additional cost to subscribers of Movie 24-7. We wanted to stick to a topic that would come to no one's mind quickly thus leading us to have a unique problem and this is how we decided on to launch new movie channel in Pakistan. The project will be focusing on the marketing strategies of the 24 – hour Movie Channel i.e. Movie 24-7. It will also be discussing strategies adopted by Movie 24-7 on entering the market of general entertainment space. Moreover, we will discuss the key aspects of the marketing plan and the environmental analysis. Along with this, the project will also talk about marketing and the marketing mix strategies adopted by Movie 24-7 and we will further suggest competitive strategies to remain in the same genre. 1. SYNOPSIS: Introduction: Today we live in a capitalist economy where each one of us is busy in our corporate worlds. Either you are a clerk, software engineer, businessman or CEO of a company...
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...Rental Industry Business Strategy and Stakeholder Responsibility – MBA-688 Professor John C. Byrne, Ph.D. Date: June 19, 2013 Executive Summary: Problem Statement – Overall Redbox has been happy with their success. However the problem is that there is a gradual shift to digital media, away from DVD’s and Redbox must be ready with innovative changes. Currently they do not have an online interface or platform where users can stream movies directly. Redbox also has a very limited amount of movies per Kios (200). If customers wanted movies that were from the 1990’s or 1980’s, it was harder for them to obtain. In a way, Redbox was limited in terms of their range. Also due to their contractual agreements with Universal Studio, Warner Bors, 20th Century Fox, etc., they had to sell their movie only 30 to 45 days after the release of the movie. Redbox is able to keep track of the number of each title in each kiosk; however, when a title is completely unavailable at a kiosk, the company hires field staff to move movies around and fill in empty slots; which seems a little inefficient and an unnecessary cost. The biggest expense Redbox incurs is content acquisition and licensing agreement. The company spends hundreds of millions of dollars on license agreements with each movie studio. Therefore the question to be asked is “How to reduce the company’s content acquisition cost?” Summary of Facts – Redbox is leading the way in the premier industry of DVD...
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...with the older products. Older generation find the newer phones hard to use. Samsung need to make its newer product more user friendly for all ages. D. Political and Legal Environment Samsung need to work with big competitors to help them go through fewer layers of bureaucracy, taxes and the exchange rates. Samsung need to make sure its Patents are registered. Apple suing Samsung is causing the company to lose money because of not patenting its product. E. Technological Environment Samsung need to look into cheaper alternatives and other products that can help develop the mobile phone and reduce its product line. Technology and Products are changing every year. People are looking for better. F. Global Environment Samsung has 34 research centers globally in San...
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...overcome and surpass dark times in cultures throughout the world. In more recent historical examples, during the great depression, the largest break through for the entertainment industry began to show by way of movies, musicals, radio and early television. Movies really began to dawn as a way to escape the realities of everyday life and live vicariously in a world of wonder and enchantment, or love and drama, for those who had more serious worries in the real world. With the progression of technology, movies have become a literal escape, with millions of followers across the globe. The movie industry has made such dramatic leaps in technology that the demand for movies and theaters has grown largely over the past 20 years. At Regal Cinemas, being one of the largest franchises across the globe, business has been remarkable. “Regal Entertainment Group (NYSE: RGC) operates the largest and most geographically diverse theatre circuit in the United States, consisting of 6,862 screens in 538 theatres in 38 states and the District of Columbia as of February 21, 2013, with over 211 million attendees for the fiscal year ended December 29, 2011 ("fiscal 2012")” ("Reg Movies", 2013). Our geographically diverse circuit includes theatres in 43 of the top 50 U.S. designated market areas. We operate multi-screen theatres and have an average of 12.6 screens per location, which is well above the North American motion picture exhibition industry average. We develop, acquire and operate multi-screen...
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...alternate. Setting up the null thus helps us to understand that though the null hypothesis itself is not testable, it helps to decide whether we should accept or reject the alternate. 6. Develop a conceptual model for the scenario below. Incidence of smoking in movies has started to increase again, after having declined for several decades. According to the National Cancer Institute smoking is seen in at least three out of four contemporary boxoffice hits. What’s more, identifiable cigarette brands appeared in about one-third of all movies in 2008. Exposure to smoking in movies is an important predictor of adolescent smoking initiation: smoking in movies has been shown to affect adolescents’ intentions to start smoking. In turn, the intentions to start smoking are determined by a more positive attitude toward smoking after seeing a film character smoke. Recent research has revealed that the relationship between seeing a film character smoke and the attitude toward smoking is stronger when a person’s identification with a film character increases. These findings are consistent with social learning theory, which predicts that attitudes and behaviors are modeled by observing the behaviors of others. Exposure to smoking in movies Attitude toward smoking Smoking intentions...
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...such as Columbia studios, Pixar, etc. Moreover, the business within this particular industry is risky since a film production needs a huge investment, so the return on investment of a movie is rarely important. IMAX interacts with its environment as it takes inputs and distributes its output, in form of large screen format movies with 3D images and distorted sound. Like every organization IMAX has also external and internal environment which affects its outputs. * External Environment: The factors and forces outside the IMAX Corporation that affects its performance are its external environment. External environment of the IMAX Corporation has two components: * Specific environment: Specific environment specific environment includes those forces and factors those directly relevant to the achievement of the IMAX goals. The main forces that that make the IMAX specific environment are: * Customers: Customers represent potential uncertainty to the IMAX because their taste changes. Therefore IMAX should need to create educational and entertainment movies and show them in full screen format. Demand for animated and technological base movies is increasing rapidly. IMAX should merge with some large theaters like Pixar to fulfill the demands of their customers. * Suppliers: IMAX had developed the skills, knowledge and capabilities to design and assemble the critical elements involved in its projector and camera...
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...rental service, which offers more than one million subscribed members access to more than 15,000 titles. Their appeal and their success have been built on providing an ever expansive selection of DVDs, and an easy way to choose movies with fast and free USPS delivery. Netflix, Inc. is the leading DVD/ Blu-Ray rent-by-mail company on earth. Netflix has more than 1.1 million paid subscribers who typically pay a monthly fee of around $19.95 for the privilege of unlimited rentals, provided that the customer doesn’t have more than 3 discs rented out at one time. Netflix offers more than 15,000 movie titles and maintains an inventory of over 5 million discs. Netflix has also been a very popular platform for video streaming over the internet for many years now, and with support for many Netflix enabled devices like the PS3 and Roku, it continues to be an essential application for a lot of people. Netflix provides an online streaming source for not only movies but also TV shows, and miniseries. There is even a Netflix app for the iPhone and iPad. The Netflix app is available for free from iTunes and installs easily. The customer still has to pay the Netflix monthly fee however When using the Netflix app, it usually launches with a screen showing the latest movies and other content for the Netflix service, and as long as you are a Netflix subscriber you can click on any of screen images to launch the streaming playback of that respective title. An app user can also search the Netflix...
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...CHAPTER 1 INTRODUCTION 1.1 Introduction This chapter discuss about background of the study, problem statement, purpose and objective of the study, significant and also limitation of the study. The definition concept of product placement is also discussed. 2 1.2 Background of the study According to PQ Media (2007) the practice of placing branded products within films for commercial purposes has developed into a distinct marketing tactic and has truly gone global. This situation happens due to product placement is cost-effective compared to other types advertising and it allows marketers to avoid clutter. Placing product in film is not new, it has becoming established in North America in the 1980s, on television program but began to receive serious attention in the UK in the late 1990s.(Chris Fill,2004).One of the example is the increase in sales of Reese’s Pieces chocolate after an on-screen in E.T on 1980s (Karh,1998). Generally product placement is about placing brands in films or TV show. Chris Fill (2004), defined product placement as the inclusion of products and services in films for deliberate promotional exposure, in return for an agreed financial sum. It is a cheap way to obtain some brand exposure in a mainstream without paying for airtime like any other promotion. Placing a product in film can overcome the irritation factor associated with advertisements screened in cinemas. There are varieties of product can be place including...
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...Established empirical research suggests that highly successful media, principally moves, are successful by virtue of the fact that the audience closely associate with the general mood, temperament and “message” that is being communicated. It will be shown that the success of particular genres of film changes through time in tune with the prevailing human social mood. Human social mood is determined by the human herding instinct which is generated by the limbic system of the human brain and is an involuntary, unconscious, “hard-wired” human condition. In order to establish the correlation between highly successful movies and human social mood we require a quantitative measure of human social mood, this is provided by the “Wave Principle” which measures the wave behaviour of the major stockmarket indices. These indexes are a qualitative measure and ‘barometer” of social mood. We will discuss principally, highly successful movies, as these are believed to be most representative of the public mood since they reach the largest audience. Successful movies don’t just happen, but rather they result from having perfect empathy with the prevailing mood of the public en-masse. Highly successful movies, include groundbreaking movies which define a genre and we will look at the historical correlation of these with public mood. We will discuss numerous examples of how social mood has influenced the production of blockbuster movies over the past 70 years and how these movies have captured the...
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