The state of play for those operating in the film business at the first stage of the distribution cycle (Cinema) is at a tipping point. Rapidly evolving disruptive technology, changing consumer behaviour and wider entertainment choice are all influencing the viability and sustainability of the cinema going audience.

1. Cue Entertainment Magazine January issue 2008
Marketing Movies Theatrically
The state of play for those operating in the film business at the first stage of
the distribution cycle (Cinema) is at a tipping point. Rapidly evolving disruptive
technology, changing consumer behaviour and wider entertainment choice are
all influencing the viability and sustainability of the cinema going audience.
New and emerging interactive platforms (including online, mobile, gaming and
user generated content) are the key disruptive drivers of a changing industry,
confirmed by a recent survey by Nokia and The Future Laboratory which
suggests that by 2012, a quarter of all entertainment will be user‐generated. In
addition, the well documented issues surrounding piracy, windows, a writers’
strike in the US and a recent Screen Digest report that suggests that rising costs
and declining revenues from DVD, will only add to a growing headache for
executives in the film business.
A headache made worse by a recent report from Global Media Intelligence
that predicts that the 132 films distributed by the six leading Hollywood
studios in 2006 will make a pretax loss of $1.9 billion (£920 million) and a
steady decline in the number of cinema admissions in the UK from 180 million
to 165 million over four years, although some observers will point out that this
year has been a bumper year and forecast to deliver 175m admissions.
So given significant disruption what are the opportunities? Is the role of
marketing keeping pace with changing consumer behaviour and choice? How
do the middle‐ranking and small box office titles compete? How do studios
and exhibitors start to re‐engage the cinema going audience to capture
growth?
At first glance, ad‐spend analysis by Neilson suggests that the way movies are
marketed still retain traditional routes to market with only a small change in
investment deployment. In the year to October of 2007, total paid for

2. theatrical media advertising spend was £197m (+6.5% versus the previous
year) with TV advertising accounting for 40% of the mix, outdoor 35% and
Press 5%.The internet, still only accounts for 3% of total spend (although these
figures don’t include non‐paid for space such as PR and Publicity).
So why does the focus remain on TV advertising? And does it reflect the
changing dynamics of consumer channel consumption, engagement and
interaction? Grace Carley of All Alliance Marketing (AIM) suggests “it’s the
bigger studios and big budget titles that are more adept at marketing films
effectively, but probably as a result of significant marketing budgets”.
It’s a point which Debra Shepherd, marketing director Paramount agrees: “we
are moving with the times, but for blockbuster‐type movie, traditional
channels such as TV and Outdoor remain the key focus”.
Shepherd goes onto say that this year she has been looking at the online space
to promote their movies and have started to create marketing campaigns
across Bebo, Myspace and You Tube properties amongst others.
If there is an over reliance on TV does that mean an over reliance on the
traditional TV trailer? Carley says “I don’t believe the trailer is dead but I think
it’s just become ubiquitous”. Ed Blum who directed Scenes of a Sexual Nature
agrees: “I don’t believe the trailer is dead but over reliance on it is dangerous.
Marketing probably has to start much earlier than the three to four months
normally set aside to raise the film’s profile in the market place. Other more
complicated and sophisticated marketing ploys should be used many months
before the release of the film”.
Shepherd cites the example of Paramount’s marketing support for Disturbia as
innovative and beyond the traditional creative route by weaving promotion of
the film into Bebo’s Kate Modern broadcasts, to market the film to a core
social networking audience.
So if the focus for the market appears always driven by the blockbuster, what
chance for the rest of the market? Blum believes that the theatrical market is
becoming too crowded, compounded by the well versed problem of wider
entertainment choice and that the market is splitting into two parts with a

3. focus at the top end on big budget films and at the ‘bottom end’ art house.
Anything in the middle he says is getting lost.
“I don’t think independent films with small or medium size distributors
attached can compete with the big distributors in a traditional marketing
manner” he says. “The independent film and the small to medium distributor
have to become more innovative in the way they market their films”.
And that’s the point. Big budget movies with big marketing budgets have the
ability to invest across multi channels, promotional tie‐ups and PR & Publicity
but not always innovatively. Mass market audience means multi channel
investment, but not so for the rest of the market which makes up the greater
volume of titles.
It’s a tough market but it’s not all doom and gloom suggests David Hancock, an
analyst at Screen Digest. “Whilst the number of films being distributed has
doubled over recent years, the number of blockbuster titles has remained the
same. What’s interesting is that whilst the smaller to medium sized enterprises
in the film creation and distribution market have a battle on their hands in
terms of achieving cut through on limited marketing budgets, their approach
tends to be more innovative.”
You only have to look at recent film launches to see a radical shift in traditional
distribution and marketing techniques. Ed Burn’s Broken Violets ‘premiered’
on iTunes and in doing so captured an unsurprising amount of publicity and
more recently the announcement (on ITV’s 10 o’clock news) that Hammer will
be producing a move for the first time in 30 years in episodic format to be
broadcast on Myspace in 2008
The recent film Once, a romance between an Irish musician and married
woman built its audience through word of mouth; 30 Days of Night’s Josh
Hartnett, the star, personally invited viewers of ITV2 & 4 in one ad to watch
the trailer in another ad; and New Line Cinema’s Shoot ‘Em Up’s online micro‐
site and viral campaign through www.bulletproofbaby.net suggests that
marketing of films is indeed moving with the times.
So what role for exhibitors in this brave new world of marketing movies?
Several observers suggest that exhibitors need to apply wholly new marketing

4. techniques. “The real opportunity lies in ‘customer relationships’ Debra
Shepherd suggests. “It’s about enhancing the customer experience and the
exhibitors can achieve it through building an effective database through which
innovative and compelling offers to retain and grow the frequency of visits”.
David Hancock agrees: “consumer understanding and segmentation will
become more important and I can see an opportunity for collaboration
amongst studios and exhibitors in reaching niche audiences and to develop
creative marketing strategies that resonate with these audiences rather than
alienate.
To some extent a new digital infrastructure and 3‐D will also play a critical role
for success and the ability of digital to schedule films in what was once ‘dead
time’. But the key criteria for success, lies in niche marketing both from a
product and geographical perspective and building customer relationship
programmes. If blockbusters are to remain the majority of cinema viewing
then not before long, declining cinema audiences will prevail. The
entertainment choice will start to be experienced elsewhere. It’s already
happening.
Gavin Miller writing for Cue Entertainment January 2008