Issue 9 - Internationalist

http://whatisthematrix.warnerbros.com
E N T E R T A I N M E N T M A R K E T I N G
movie world
and attendance in certain key
markets hasn’t been increasing.
In dollar terms, we have been
Dramatic changes aren’t just taking place
forced to spend more, and
on the big screen; they’re playing a role that’s not [unique] to Fox.”
in making the film business profitable.
Studios have turned to
promotional partnerships
with major advertisers to
MMovie marketing used to be At the same time,“we don’t share some of the costs, but
very much a local activity, but have an unlimited amount partnerships aren’t the solution
global launches, rising costs, of money we can spend on for all movies nor the complete
ticket prices that haven’t kept the marketing side.” says
answer for any movie.
“The Matrix” used MTV
pace, and more competition
are changing that.
Budgets are incorporating
all kinds of new media vehicles
that never were a part of
the movie scene before. Panregional
cable and online
Michael De Lucia,VPinternational
marketing, Fox
Filmed Entertainment
Division of 20th Century
Fox.“Everybody’s net margins
on theatrical releases have
been squeezed. [It’s
important to] “get your
share of voice and
open big because you
don’t have long to
run,” he says.
The average cost
of making a movie
rose 9% in 2003 to
$64 million among
members of the
Motion Picture Assn.
of America, which
includes the major
studios. At the same
time marketing costs
increased to an average
of $39 million, a 28%
jump, according to MPAA.
While worldwide box
office revenues increased 3%
to $20.3 billion in 2003,
worldwide admissions
declined to 8.6 billion,
according to the Movie
Picture Assn.The box office
increase came from growth
outside the U.S., which
reached the $10 billion mark
for the first time.The
U.S. makes up almost half of
all worldwide box office
revenues with Europe/Middle
East/Africa contributing
about half of the international
segment and Asia/Pacific
about 35%, MPA found.
Tastes inside and outside
the U.S. appear to be similar
if top-grossing films are any
indication. According to
Variety, the five top-grossing
films in 2003—all more than
$250 million at the box office
across Asia, Europe,
have become much more However, for the major
—were the same inside and
important in the advertising releases the spending is more outside the U.S:“Matrix
Latin America, and North
America to reach young
viewers in a variety of
and promotion mix.The
penetration of cable and the
Internet in various countries
like $50 million and above in
the U.S. with at least a similar
amount outside the U.S.,
Reloaded” ($457 million);
“Finding Nemo” ($426 million);
“Pirates of the Caribbean:
environments, including
is a phenomenon rolling
many marketing execs say. Black Pearl” ($348 million);
out, says Stephen Basil-Jones, “Budgets are going up “Lord of the Rings:Two
programming, at the MTV
Movie Awards, on-air
senior VP-media, Columbia
TriStar Film Distributors
astronomically,” says Basil-
Jones. Comments De Lucia,
Towers” ($342 million); and
“Lord of the Rings: the Return
promos, VJ mentions, and
International.“It’s a tidal
“Ticket prices haven’t kept up of the King” ($317 million).
wave that is going to keep on with increases in the cost of
This year, a record number
on-line support.
rolling.”
media and marketing spending, of releases costing in excess of
13