Tuesday, November 1, 2011

The "tent-pole" effect

One of the five peculiarities states "revenues are streamed across a lengthy time period". This is very true, DVD's are now the largest studio revenue earners. So even though a major blockbuster film can have huge box office numbers within the first two weeks of it being in the theaters, that is not where all the revenue comes from. The revenue from DVD sales now eclipse the box office sales. In addition to the theatrical release, revenue is generated through many auxiliary avenues. In 2003 there was a study that stated "domestic theatrical box office grosses" now represent only 15 percent or less of the total revenues. The other 85 percent is know as the "ancillary" markets. These "ancillary" markets can include DVD and video, the international theatrical market, network syndication and pay television. For example drake uses the term "tent-pole" effect to mean that the success in films in theaters directly effects their success in other markets. The first two weeks in the theaters are all that matters, if the movie is a big hit and draws a ton of attention then there is a really good chance that it will be successful in its "ancillary" markets. Therefore the revenues are streamed across a lengthy time period. The Sale of DVD and VHS is not until at least 6 months after the release of the movie in theaters.
Windowing is also very important. Windowing is "the strategy is releasing film over time across different media windows". This strategy can be very effective if timed right. The marketing strategy is connected directly to the windowing strategy. The use of marketing must be time appropriately so that the release of each different media window is timed perfectly with the right amount of marketing and advertising to make people aware of the release on a new platform.

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