Year
after year billions and billions of dollars in revenue is made from the film
industry. Many people wonder how such an abundance of money is made. Marketing
is the simple answer. The number of media outlets owned by companies has become
less and less in recent years. Instead of thousands of small companies, there
is multiple conglomerates dominating the scene through effective marketing
strategies. These conglomerates use a variety of methods to market their films
such as: cross promotion, merchandise, and home exhibition.
Various
big-time companies come together with similar interest to promote their
products using cross promotion. Toy companies, food companies, and department
stores are all in interaction with film corporations. For instance, Jurassic
World partnered with famous toy company, The Lego Group, creating dinosaur
action figures. Additionally, Jurassic World also partnered with prominent
candy company, Mike and Ike, producing Jurassic World themed candy boxes. Another
example of this, is when the creators of multibillion-dollar corporation,
Universal, released one of their most popular projects, Furious 7, and teamed
up with the video game creators of Forza, to make Forza 2, which was based on
the Furious 7 movie. In Furious 7’s first weekend of being released, it accumulated
a whopping $143.6 million, and continued to collect $384 million worldwide later
that week. The utilization of simple market strategies, strategies as easy as
cross promotion, can lead to major success, and an amazing outcome.
Hundreds
of well-known film companies around the globe almost always distribute their
movies through home exhibition. Famous enterprises like Walt Disney Pictures,
Mandeville Films, which was previously a subsidiary of Disney, and Universal,
have all brought their movies to households globally. The audience can finally
watch the movies they love so much from their own tv screen. On September 15,
2015, Furious 7 was released on Blu-Ray and DVD. Likewise, on June 6, 2017, a
couple years after the home exhibition of Furious 7, Walt Disney Pictures and
Mandeville films brought one of their most renowned movies, Beauty and the
Beast, to homes everywhere via Blu-ray, DVD, Digital HD, and On Demand. To add
on, in 2018 the distinguished film was later released on one of the biggest
streaming platforms in the world, Netflix. The extensive marketing of Beauty and
the Beast led to a vast stream of revenue; the movie is ranked 76 all time, and
collected approximately $1.3 billion worldwide. The amount of profit earned was
tremendous, and could not have been done without substantial marketing, not to
mention an immense portion of the earnings was ancillary revenue.
Merchandise
is most likely the most common and frequent form of marketing due to its
success. World renown businesses such as Columbia Pictures, Marvel Studios,
Disney and Universal all create merchandise for their newly released films.
Most recently, Columbia Pictures and Marvel Studios came up with a Spider-man
Homecoming video game for the ps4 to raise their revenue stream. This game is
familiar to kids and teens throughout the world that own a ps4 because the
amount of sales blew through the roof, making it a definite topic of
discussion. Furthermore, the two major organizations created action figures and
games to get kids to want to watch the movie. Another prime example of this is
Jurassic World; after the movie became a huge hit, many Lego sets, video games,
and even an app were created to further market the product. Limited DVD sets
were even being distributed with the addition of toys, figurines, and posters.
Moreover, Disney is one of the best merchandise distributors on the planet.
When their Beauty and the Beast film released, ornaments, clothes, dolls, etc.
were also added to the Disney shop. Disney even teamed up with Target to create
costumes, Hallmark to release Beauty and the Beast themed mugs, and Hot Topic
released film inspired shirts, accessories, etc. The ancillary revenue of all
these films is absolutely massive. Without merchandise companies can lose about
half or more of their revenue from the film. Without a doubt, marketing is the
most crucial part about making money in the film industry, without it there
would be no profit to be made.
In
retrospect, the film industry is one of the most challenging industries to
thrive in. The use of different types of marketing all contribute to the
success of sensational film companies world-wide. Continuing to use effective
marketing strategies like home exhibition, cross promotion, and merchandise
will all be vital to a film conglomerates survival. Companies persistently
pursue new approaches to marketing, to assist them in thriving in today’s demanding
economy.