Wednesday 10 December 2014

Cross Convergence and Synergy

THE IMPORTANCE OF CROSS MEDIA CONVERGENCE AND SYNERGY IN PRODUCTION, DISTRIBUTION AND MARKETING, IN THE FILM INDUSTRY

In order for a film to be successful, it must; as well as follow a good narrative and have a wide range of a-list actors; market and promote itself using a wide range of techniques. However, in order for all of this to occur, the film company must think of their main aim of all of the promotional material carried out, and there must be a campaign objective carried out during the pre-production stages. An example of a campaign objective from a block buster is the film “The Woman in Black”. Their main aim was to engage fans of the book and the play; whilst also selling the spooks, scares and quality of the film. The distributors of this film also aimed at targeting a broad audience through it use of advertising, publicity and promotions (promotional campaigns).
The most common type of marketing used to sponsor a film is vertical integration and synergy. Vertical integration companies in a supply chain are united through a common owner (conglomerate), or in other words, a company which owns large numbers of companies in various mass media, such as: television, radio, publishing, movies and the internet. According to the 2012 Fortune 500 list, The Walt Disney Company is America’s largest media conglomerate in terms of revenue, with News Corporation, Time Warner, Viacom and CBS Corporation, completing the top 5. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need (to make profit). Walt Disney has recently announced that it is buying Pixar, the animate studio led by Apple head, Steve Jobs, in a deal worth $7.4 billion. Jobs came to the conclusion that made the most sense for Pixar to align itself with Disney permanently instead of trying to distribute films on its own or sign with another movie studio partner. Disney and Apple have already announced several online programming deals during the past few months. Disney now has agreements in place to sell hit ABC prime time shows, such as: “Desperate Housewives” and “Lost”, as well as content from ABC Sports and ESPN on Apple’s popular iTunes music and video store. As well as there being a few concerns about the connection of Disney and Pixar, due to the strained relationship between Jobs and former CEO Michael Eisner; there are some noticeably strengths of this major collaboration. The key benefits both Disney and Pixar will gain from being part of a vertical integration company are that the range of innovation is broadened, enabling more successful and creative films to be produced. Nevertheless, it also creates more businesses to be made, resulting in more employment. Also, because of the share of resources, it means the budget is balanced, meaning shared money, so the companies are at less risk if the film doesn’t manage to make at least three times its budget.
In addition to Disney and Pixar’s collaboration, Walt Disney Co also agreed to buy Marvel Entertainment Inc. for $4 billion. Disney adds Iron Man, the Incredible Hulk and Thor to its roster of lovable and fantasy-like characters, like: Mickey Mouse and Cinderella; and will feature the comic book heroes in movies before rolling out associated theme park rides, TV shows and merchandise. David Joyce, an analyst with Miller Tabak & Co, has commented saying how this combination “helps give Disney more important exposure to the young male demographic that they have lost some ground with in the recent years.” Disney will also be able to use its marketing and entertainment strength – stretching from ABC to cable television to theme parks – to promote and build characters, such as: Thor, in ways Marvel never could. The deal is Disney’s largest since the $7.6 billion purchase of Pixar in 2006. Like with Disney and Pixar, the combination of Disney and Marvel has caused some stir, however there are some obvious benefits both companies will gain from being part of a vertical integration company, for example: Marvel will take knowledge from Disney by their use of marketing and entertainment; and Disney can also publicise Marvel, by using techniques which will attract larger demographics. They can also dominate the global animation market as there would be less competition, and it would create a universal audience, resulting in more money/profit.
Disney is now the largest animation studio in the world – they now own Marvel and Pixar. However, Disney have creatively linked and produced many different media platforms, for example: Motion Pictures, Walt Disney Studios, Disney Music Group, Disney Theatrical Group, Disney Studio Service, Studio Production Services, Studio Post Production, Disney – ABC Television Group, ABC Family and ABC Entertainment. A company like Disney can promote its films though the different media platforms and companies they own. For example: Disney can attract specific demographics through the different media platforms (ABC Family – can attract families, like adults and children); this creates almost a global recognition, and creates almost a synchronous viral campaign, as they are promoting their film to audiences around the world, all at the same time, creating a buzz. Films do not necessarily need to be promoted during shows or programmes. Advertisements which appear between shows can also encourage audiences as it is an easy, yet effective way of grabbing the audience’s attention and interest.
The most common form of marketing used by film companies is the use of synergy. Although, synergy is used widely, it is a form of promotion audiences tend to ignore or overlook. Synergy basically means working together to achieve an objective that couldn’t be achieved independently. Disney is an obvious example of a synergetic company from the top down from Film Studio to Kids’ TV Channels to the Disney Store’ where kids can buy all the merchandise and DVDs/CDs they’ve seen on the TV/Web or in the cinema. Synergy can also be described as the ‘strategy of synchronising and actively forgiving connections between directly related areas of entertainment’. Synergy is the use of similar branding across a range of platforms – where a symbol, colour, or sound allows for a synchronised promotional campaign (a unified brand) – this maximises audience awareness, (360 campaigns is used to ensure you get information about the product from every angle possible – using every media platform of how people consume and distribute films).
Cross media convergence is also used by higher concept film industries as it involves two media companies collaborating for the purpose of generating profits (synergy). An example of this is 20th Century Fox working with MySpace, to create a viral marketing campaign. On the other hand, Revolver Entertainment is an independent film, and so does not have these links with multi-media conglomerate, and so cannot compete with major films to the same scale.
Symbiosis (which is another form of synergy), is also used by linking up various companies to make profits from one product. This is when different (including non-media) companies, work together to promote a range of related products, e.g. High School Musical, the film will enable spin-offs, like Happy Meals, Easter Eggs, toy characters, etc. – and the distributor will agree licensing deals for companies to make and sell this merchandising. A percentage of the profit will then go back to the distributor. Walt Disney pioneered symbiosis marketing techniques in the 1930s by granting dozens of firms the right to use their Mickey Mouse character in products and ads, and continued to market Disney media through licensing arrangements – this meant that both companies benefitted from this. These products can help advertise the film itself and thus help to increase the film’s sales – synchronised marketing. For example: the Spider-Man films had toys of ‘web-shooters’ ad figures of the characters made, CD soundtracks and other merchandising which not only sold the products, but also promoted the film.
The Avengers is another example of a major film promoting its film using synergy, cross media convergence and symbiosis. The Avengers, unlike other major films, chose to release its film globally; this created a global trend and buzz on many major social networking sites and blogs. The unusual choice to release the movie in many major international markets before releasing it in the United States built a “global countdown” buzz for The Avengers – and also reduced piracy.
Disney put out chapter books on each character, familiarising kids with action-packed back-stories. An Avengers animated series took on some of the tone, humour and attitude of the films – whilst Marvel produced video games. This is known as trans-media storytelling (the coordinated extension of a cohesive story world, across multiple media platforms). One key and most noticeable USP of the film, The Avengers, is the wide range of superheroes featured in the film. Universal Pictures held the rights on Hulk, Paramount for Iron Man, Captain America and Thor, and now Disney had combined them altogether for The Avengers.
Official sites, such as: YouTube (which has approximately 200 million views daily), Twitter and Facebook pages (estimated to have around 1 billion users), have an online community as they are forms of social media, and so attract audiences from all over the world easily and for free. There are many benefits of using social media sites to promote a film, as it attracts larger and a range of demographics. It is also a form of portable marketing, as users are able to download and install apps on their mobile phones, allowing them to get immediate updates/constant alerts on new releases, competitions and awareness if sequels. Film companies also monitor these sites to know what their fans are saying. Disney/Marvel use social media to build up buzz for the audience by engaging the audience through competitions (e.g. The Woman in Black’s completion carried out to submit audience’s ‘ghost stories’) and online games – this allows audience participation. The Avengers also promoted their film through their official website – which has an immediate link to their Facebook and YouTube page (placed either on the top of the website or at the bottom for easy access). Fan blogs are also used as a form of critics for the audience, as it allows the audience to know whether the film really stand up to the high expectations set by the film industry. The Avengers site also includes: trailers for new releases, character profiles, film stills/behind the scenes/teasers, sign ups, DVDs and Blu Ray disks, competitions, as well as a link to the Disney Store.
Merchandising and franchising are fundamental in terms of making money as effective merchandising can enhance a brand’s exposure to the public and increase sales. The better the merchandising and franchising; the more recognition the film gets, and the more interested the audience are and aware of the film. Merchandising and franchising is important, because for many major films, the money made from official products is more than the money made from box office sales.
Marvel did deals (synergy/symbiosis) with other companies helping them market and promote the film. Companies Marvel combined with were: Norton, Acura, Hershey’s, Dr Pepper, VISA and KFC. The benefits of this are that not all of the partners are necessarily aimed at children, but also aimed at adults (e.g. VISA and Acura-car Company). These different companies were all then featured subtly in the film (product placement), which meant that the film got sponsors, whilst the companies were also featured in the film – resulting in a win-win situation. Product placement is included in most films which include a major partner/company, for example: Skyfall’s partnership with Aston Martin and the partnership between the Fast & Furious sequel and BMW. Whilst food chains, such as: Burger King, also did an offer where for every week you go, you receive a different toy; which meant that children continuously went there to purchase all the collectables, which allowed KFC with a big profit gained just from merchandise.
An example of where a non-media company as joined with a film to promote it, is the combination of Peugeot 5008 and Toy Story 3. The benefits of this combination are the idea of awareness, developing and branding of the film. Also, it interlinks with a scene from the film; nevertheless the idea of advertising and combining a family car with a family film, emphasises the connection between the two products. In addition, the competition shown at the end of the advert engages the audience to the product; whilst also saying how to enter they must visit the website, which gives the audience more information about the film and makes them more interested in the film because of the offers and deals.
Many major films include different forms of marketing and advertisement; however independent film companies, such as: Revolver, have been offered awards for various things. In the past 10 years, Revolver’s independent spirit and flair has been awarded with 18 of the industry’s top awards for marketing excellence. A key difference between Disney and Revolver’s assesses, is the idea that Revolver is active in reaching out to audiences – thinking outside the box. Compared to Disney’s promotional campaigns, Revolver is seen to have approximately 0ver 9 million YouTube trailer views and over 2.5 million music video trailer views.
Marketing and promotion can affect audience’s choices on exhibition. The Avengers were in cinemas worldwide. Whilst independent UK films, such as: Sket were shown in most independent cinemas in the UK. Cinemas get 50-60% of what the film makes. Cinema’s also make most of their money from drinks, popcorns and nachos. Cinemas tend to show The Avengers more than Sket at peak time and days, due to the content of the film. The Avengers also is targeted towards younger audiences because of the age category; and that the content of the film doesn’t involve extreme violence or provocative scenes – this means that the film is able to be shown during the watershed.
Digital technology has enabled different medias to converge together to promote and market a film. For instance, mobiles phones do a lot more than act as hand-held telephones; you can download and watch films and TV programmes, as well as use them for constant alerts on new releases and competitions. Media convergence is having an enormous impact on the film industry because of the ways in which institutions can produce and market for audiences on a widening range of platforms. To conclude, it’s one thing promoting a film using static methods, such as: posters, billboards and advertisements; however cross media convergence, synergy, vertical integration and symbiosis offer a whole ‘nother perspective and vessel to promotion; that’s why films such as The Woman in Black and The Avengers are considered as block buster’s due to the range of different marketing and promotional campaigns carried out by the film distributors.

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