Motion Picture Industry & Advertising Vocabulary

Ten key vocabulary terms essential for understanding the economics and advertising strategies of the motion picture industry.

Vertically Integrated Oligopoly

Market structure in which a few dominant firms control multiple stages of production, marketing, and distribution (e.g., major film studios owning their own streaming platforms).

Streaming Video on Demand (SVOD)

Subscription-based digital service that provides unlimited access to a library of films and shows for a recurring fee (e.g., Netflix, Disney+).

Advertising-to-Sales Ratio

Financial metric that compares a company’s total advertising spend to its total sales revenue, indicating how aggressively it markets its products.

Tentpole Film

High-budget, event movie expected to generate significant box-office revenue and support a studio’s overall financial performance.

Prime Time

Evening broadcast window (approximately 7 PM–11 PM) with peak audience reach, commanding premium advertising rates for trailers and spots.

Experiential Marketing

Strategy that creates immersive, in-person events or installations to engage audiences and generate social media buzz around a film.

Herfindahl-Hirschman Index (HHI)

Concentration measure that sums the squares of market-share percentages to gauge industry competitiveness; higher values indicate greater market power.

Platform Disruption

Shift in industry dynamics when new distribution channels (e.g., streaming services) upend traditional models like theatrical-first releases.

Influencer Marketing

Promotional approach where studios partner with social media personalities to endorse movies, leveraging their follower bases for targeted reach.

Ancillary Revenue

Income derived from non-theatrical sources such as licensing, merchandise, Blu-rays, soundtracks, and mobile games tied to film IP.