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GLR Fellow Gavin
Miller is a marketing consultant specialising in the entertainment
sector. Here he shares part of a report he has produced on the
future of keeping us entertained…
We are already seeing traditional structures crumble
in the entertainment industry: the well publicised problems at
EMI; the direct-to-consumer première of Broken Violets on iTunes;
the launch of Hammer Films’ first movie in 30 years on MySpace;
the move by Madonna out of EMI and into a ‘live events’
company and the ‘pay what you want’ pricing strategy
behind Radiohead’s latest album.
Back to marketing
basics
Back in 1998, marketing
guru and author Peter Doyle wrote: “What satisfies customers
today will not satisfy them tomorrow… nothing is more certain
than a firm’s current products, technology, distribution
channels and market position will become obsolete”. So it
is with marketing in the entertainment sector today where businesses
and individuals will need to focus on four key points to operate
successfully.
Firstly, they will have to appreciate what’s
happening in the whole entertainment and wider marketplace and
not just the specific market or ‘discipline’ in which
they operate. Secondly, they must make understanding the consumer
their number one priority and use that understanding to shape
distribution and marketing strategies.
Thirdly, they must challenge creative convention
in developing innovative and relevant communications to both engage
consumers and drive sales. And fourthly, they must reconsider
the structure of the industry to establish a new, non-linear business
model that shapes the creation, distribution and marketing strategy
of content (in any format) across platforms and, importantly,
at the moment content is conceived.
Product and place inseparable
The rapid and radical change and growth in new
channels means that understanding consumption has never been more
important for entertainment companies. At the core is the need
to keep abreast of how new digital platforms affect traditional
routes to market and the entire new ones they create and how consumer
behaviour changes as a result. Interestingly, the line between
marketing and distribution will become increasingly blurred. Marketing
and distributing to consumers in the digital age will become one
and the same.
There
is now an opportunity for entertainment companies of any size,
to leverage both the marketing and distribution of content at
the same time and across multiple platforms. As a result the rights
model will need to change in terms of both definition and ownership.
The opportunity for some content creators is to retain the rights
they are currently giving away across all platforms, and for all
content creators to create content pieces to support the marketing
of the product which can be used to leverage distribution.
From push to pull
model
Entertainment executives traditionally tend to
operate in their particular categories or silos, but with the
recent explosion of entertainment choices in the everyday lives
of consumers (film, restaurants, music, sport, TV programmes,
computer games, books, magazines, holidays, the internet) a broader
view of what’s happening in the wider marketplace will be
beneficial.
To operate successfully in today’s market,
entertainment businesses need to develop a cohesive and collaborative
content creation, distribution and marketing strategy, and to
understand the wider entertainment choices available. To that
end, they need to look at a vertical model that matches consumer
behaviour — competition for consumers now lie across multi-entertainment
platforms.
And
it is not just what consumers choose to consume but when and how they
choose to consume it that has changed entertainment almost beyond
recognition. The last five years has seen Freeview, Sky +, iTunes,
podcasting, Video On Demand, DVD rental by post, the BBC’s
iPlayer, subscription TV to name but a few.
Mobile and social
media
Mobile marketing is also expected to grow to $11bn
by 2011 according to Informa. The value chain over the last five
or six years has grown to include all sorts of technology and
content participants: mobile portals, CRM, location-based services,
aggregators, advertising agencies, digital agencies, operators,
broadcasters, content creators (ring-tones and alerts for example)
and many other ‘specialists’ to boot.
Control is now in the hands of the consumer and
they’re exercising it in environments that we’re only
just beginning to notice. If you haven’t heard of Scoopt,
Digg, Dopl, Moli and Binweevils, you soon will: these sites will
soon be joining Facebook, Myspace and the growing throng of popular
social networking sites that made social media the buzz phrase
of 2007.
To offer innovative and compelling content in 2008
and beyond, marketers need to reconsider the traditional structures,
establish new non-linear content models and above all, think about
consumers at the start of the creative process.
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