Trends in Entertainment 2011

Current Trends in the Media Industry: Film Production, Television Commercials and Video Games The shift in entertainment has contributed to the change in technology, the shift in marketing, the rise of social media and the increase in box office sales. The truth is that whenever there is a recession, we are a war or there is an economic downturn, the entertainment industry seems to dominate the arena by increasing sales and generating revenue in record numbers. Whenever we are facing tragedy or there is an increase in unemployment consumers tend to utilize entertainment more. Perhaps we are escaping our current reality by playing video games, watching movies and going out! Statistics have shown that over the past few years we have shifted the world of entertainment tremendously. I was reviewing the content at the following site, http://www.npd.com/corpServlet?nextpage=entertainment-categories_s.html. At the site the NPD group states that the film industry dynamics have changed significantly over the last few decades, with studios turning into major media conglomerates focused on the financial bottom line.

VSS research forecasts rising ticket prices will dampen movie attendance and overall box office performance from 2007 to 2011. Theater owners will try to overcome this with more digital screens and studios offering IMAX and 3-D formats. Home video spending, the second largest entertainment category according to VSS research, grew only 0.5 percent in 2006 to $25.7 billion. Growth was driven primarily by a 7.4 percent increase in DVD spending. Additional purchases of DVDs helped offset a staggering 68.9 percent decline in videocassette sales to $720 million.

The growth in DVD spending was propelled by the plethora of box office titles that became available in 2006, including 15 films that generated more than $100 million each at the box office. Releases included “The Chronicles of Narnia,” “Cars” and “Harry Potter and the Goblet of Fire.” These titles fueled total DVD purchases up to $17.9 billion and DVD rentals up to $7.08 billion. According to a February 2008 article in The Economist, there is growing concern in the DVD industry that the Internet will decimate DVD sales, which in America generate about half as much revenue as feature films. Although pirating is seen as a threat to the film industry. Apple’s iTunes captures about 80 percent of the download-to-own market, while Xbox accounts for more than 70 percent of online rentals. On the other hand, an article in BusinessWeek states that the industry is currently mitigating against pirating threats by holding onto paying subscribers and releasing more movies using 3-D images.

The digital television conversion has contributed to the elimination of VHS and video rentals.Music, Movie and Gaming Revenue has grown tremendously. According to the NPD group, ESAA and MPAA: revenue for games is up 28.4%, revenue for movies is up 1.8% and revenue for music is down 10%. According to boxOfficeMojo.com video game software sales and rentals to $7.16 billion in 2006, while PC software sales declined 1.3 percent in 2006 with spending dropping to $1.01 billion. There is demand for three-dimensional images, artificial intelligence, enhanced voice and sound effects. By 2011, it is estimated that development costs for a single game will range anywhere from $15 million to $25 million. According to VSS researchers, Consumer video game spending will be linked to the availability of new titles for updated console game platforms, which include enhanced online multi-player subscription components such as the Wii and Xbox 360.

Due to the phenomenal success of the video game “Grand Theft Auto IV” which grossed over $500 million in its opening week, with over 6 million copies were sold. This trend also contributes to the PC software market will rebound modestly as sales increase for new computers with superior graphics. Spending on television programming and in-flight entertainment increased 9.1 percent in 2006 to $27.45 billion, according to VSS. However, the rise of reality shows has taken a toll on network television and VSS blames the growth of reality T.V. on the lack of scripted, off-network programs available for syndication. I am currently suffering from “reality fatigue.” the lack of creativity, the horrible acting, and the increase of drama that dominates every episode. Local television stations are now competing with cable an increased DVD sales of many of the programs they air in syndication. However, Stations are currently benefiting from the FCC-required shift from analog to digital signals hat took place in February 2009.

Due to the current trends in entertainment, marketers are currently asking: In what entertainment activities are consumers engaged? Where do Americans spend their entertainment dollars? What are the high-value consumer segments? What type of entertainment content do they acquire? Where do they get this content? What is the impact of specific technology ownership on entertainment consumption behaviors? What are the potential opportunities/risks for a target consumer segment or industry? What is the consumer outlook for future entertainment spending? You can read more insight at the following site: http://www.npd.com/lps/Entertainment_Trends2009/. Until next time! Today has been great, tomorrow will be even better!

Funding: Money speaks for itself!

Sources of financing are extremely important in the entertainment world. While participating in the business plan development courses at Full Sail University I have been introduced to several alternative funding programs. One of the greatest challenges with staring a business and stepping out on faith is the need for financing.There is a great deal of need for Angel investors and alternative funding sources. Please see the information that I have providing below on two of the alternative funding sources that I have researched within this past week: http://www.eda.gov/ and http://www.firstnations.org/.

The First Nations Organization is better known as The first Nations development institute and their site is, http://www.firstnations.org/. The First Nations development institute has a goal of empowering American Indian economies. They offer grant support to tribes and Native nonprofit organizations to support culturally appropriate, asset based development efforts. The organization offers both financial and technical assistance. However, First Nation requirements that all applicants be legal American Indian and to tribes. Their is another organization better known as the US Economic Development Administration. The EDA encourages programs that promote business expansion and job growth. They also support key initiatives throughout regional areas across the United States, thereby developing economic stability through intergovernmental and public/private sector collaboration. US Economic Development Administration can be located at www.eda.gov. This organization offers federal funding opportunities which include the accellerator challenge competition, University Center Economic Development Program, development assistance programs and several other programs. The US Economic Development Administration has 5 core evaluation requirements which include: 1. National strategic priorities 2. Distressed and underserved communities 3. Return on investment 4. Collaborative regional innovation 5. Public/private partnerships Within 15 days of reciept, all applications will be evaluated for completeness. Applications are also considered in for cycles and grants that are accepted will be published on the website at www.grants.gov. Other types of information available on the eda.gov site includes, program funding opportunities, articles on economic inititives, research tools and contact information. Infomation also provided on the firstnations.org/ includes policy training, research program publication, email alerts, updates and an opportunity to donate online. Today has been great, tomorrow will be even better! Until next time!