mgmt 365 - fi

week 1-4

Leisure

Aristotle- as the goal of a life of contemplation and true happiness, viewed as the absence of being occupied

Modern- reflects time not spent at work in pursuit of compensation, or on taking care of children or household (generally considered being occupied with something)

Entertainment

The act of diverting, amusing, or causing someone’s time to pass agreeably (produces a pleasurable and satisfying feeling if not than you aren’t entertained)

Free Time

Total time - Subsistence Time (eating, sleeping) - Work

( has a perceived cost associated with it)

Factors that affect Demand for leisure activities

Working conditions (available time), personal gratification (what tunes you on), cost(activities competing for limited time and money), and demographics (age, household income)

Factors that impact the ability to Supply entertainment products and services

Capital, know-how, regulations, price competition

Physiological benefits of entertainment

• a sense of competence

• A feeling of autonomy

• A sense of relatedness

History of Entertainment

1. Roots - performances and games of skill

2. Development saw religious mystical or cultural rituals developing into theater and games

3. Industrial Revolution of the 1800s was a major milestone

4. Early 1900s the concept of the “weekend” and the “vacation” emerged

Media based entertainment

Dependent on some type of medium for its delivery, such as cinema, home entertainment, broadcast tv and radio, and more (primarily product based, touched seen counted easily measured and can be repaired or scrapped)

Ground based entertainment

Known as live entertainment or location based entertainment (delivered directly to the consumers through a live presentation, like live theater and amusement parks and serviced based cause services are done for customers and difficult to measure)

Intellectual property

Heartbeat of entertainment - property such as an idea or invention that derives from the work of the mind or intellect (content is king)

Laws of media

extension, closure, reversal, retrieval, entropy/fragmentation, herding/synchronicity, exponentially, spread

extension

Every technology extends or amplifies some organ or faculty of the user (e.g., the wheel of a bicycle is an extension of the foot)

closure

New media creates obsolescence or pushes old media out of prominence

reversal

Every form, pushed to its limits, reverses its characteristics (e.g., technology enables movies to go to you, rather than you going to the movies)

retrieval

The content of any medium is retrieved from an older medium (e.g., a book spawns a movie, which begets a play or video game

entropy/fragmentation

Every successful form rapidly fragments into many subsidiary niches (e.g., the Harry Potter book leading to a movie and theme park ride)

Herding/Synchronicity

The deep-seated need for people to follow what other people do and to do it at the same time (fads)

exponentially

Income is scaled exponentially, with relatively few items accounting for most results (95:5)

spread

Media content will try to spread as widely as possible; content seeks maximum distribution, and distribution seeks maximum content

Eadweard Muybridge

pioneered the use of multiple cameras to capture motion and developed the zoopraxiscope

persistence of vision

The phenomenon where the human eye retains an image for a fraction of a second

    ◦ Due to this effect, a rapid sequence of images will be perceived as an integrated moving image

Thomas Edison

Helped transform electricity from a curiosity into an essential tool for modern life.

    ◦ Patented the phonograph (sound recording/reproducing device) in 1878

• Was granted a patent for the motion picture camera, the "Kinetograph," which was first publicly exhibited along with the kinetoscope on May 20, 1891

Green Lightning

◦ The action by which senior executives formally approve production financing, allowing a project to move from development to pre-production and production.

    ◦ The decision is driven primarily by the probability of success, determined by predictors such as Cast (Star Power), Genre, Comparatives, Projected release date, and Director

pre production

The project management phase where the project is designed and planned following financing approval.

    ◦ Key activities include: forming a production team, establishing an office, storyboarding, creating a detailed production budget, creating a detailed production schedule, hiring the crew (director, cinematographer, etc.), constructing sets, and conducting a cast read-through

production

    ◦ Film production is the transformation stage where IP and technology meet to create a media-based video product.

    ◦ Key components are Shooting (filming) and Reviewing (Quality Control)

    ◦ For traditional film (rare), unprocessed negatives are sent to a lab and return as dailies or rushes (film positives) to be viewed in the evening.

    ◦ The majority of productions today use digital technologies

production budget

Sets forth how much money will be spent on the entire film project, including cost estimations for development, pre-production, production, post-production, and distribution.

    ◦ The budget structure is usually split into "above-the-line" (creative) and "below-the-line" (technical) costs

production schedule

 ◦ A project plan showing how the production budget will be spent over a given timescale for every phase of filmmaking.

    ◦ It details elements such as Cast, Wardrobe, Special Effects, Props, and Sound Effects/Music

post production

  ◦ Includes all stages of production that occur after the actual filming.

    ◦ This phase often takes longer than the actual shooting (several months).

    ◦ Activities include: digitizing elements, editing the picture/TV program, editing the soundtrack, writing and recording the music, and adding visual special effects (CGI

Funding the project

• Debt finance

• Equity finance

• Tax schemes

• Government grants

master creation

◦ All major movies, whether captured digitally or shot on film, result in a digital master.

    ◦ Subsequent versions (theatrical, home entertainment, trailers, etc.) are made from this digital master.

    ◦ Deluxe and Technicolor are the two primary firms used for creating digital masters and processing film

Theatrical release window

 ◦ This is the most well-known release and represents the primary exhibition of the film through cinemas.

    ◦ It is, with rare exceptions, the first window of exploitation.

    ◦ In the "old model," this window lasted roughly 0 to 5 months. While non-theatrical streams generate higher revenue overall, the cinematic window still remains the main driver of subsequent revenues

non theatrical distribution

◦ A secondary release (typically less than 5% of the total) for screening to a gathered, closed audience, not in theaters where individual tickets are sold to the public.

    ◦ This release occurs shortly after the theatrical release.

    ◦ Examples of venues include Airlines, Ships at sea, Armed services, Community & school groups, Correctional facilities, and Public libraries

wyas that music is available to consumers

• Music is available 24/7 through various means: In the Home (CD players, Turntables, MP3 Players, Internet, Radio); at Work (Hardware players, Radio & Internet); in the Car (CD & MP3 Players, Terrestrial and satellite radio); and On the Go (MP3 players, Mobile streaming/downloading)

vinyl album sales

• In 2018, 16.8 million vinyl LPs were sold, representing 11.9% of all physical album sales.

    ◦ In 2024, sales reached 44 million units and $1.4 billion, marking the 13th consecutive year of sales growth

live music

 ◦ Live Music is flourishing.

    ◦ 50% of people in the U.S. attend at least one type of live music event each year.

    ◦ Live Performances constitute the largest and growing revenue stream in the music industry

music revenue streams

 ◦ Live Performances: The largest and growing stream

    ◦ Recording: The second largest stream, including Digital Download & Streaming (the newest and largest component since 2011) and Physical Recordings (historically the largest, but now in decline).

    ◦ Publishing: The smallest, but most stable stream

performance rights organizations (PRO’s)

  ◦ Firms (like ASCAP and BMI) that aim to protect the musical copyrights of their members (songwriters, composers, and music publishers).

    ◦ They monitor the public performance of music (broadcast or live) and collect licensing fees from music users to distribute back to members as royalties.

    ◦ Public Performance Rights are required if music is played publicly (e.g., in a radio station or restaurant)

the music business models

        1. Performance Model: Associated with the cylinder period.

        2. Product Model: Associated with records, tapes, and CDs, involving physical inventory, supply chain management, and retail chains.

        3. Service Model: Associated with wireless internet, mobile phones, and personal storage devices, providing portable music available anywhere and anytime through universal providers

Organizational structure

• Distributor ; large firms that control music publishing companies,

• Publisher: ensures composers are compensated for the use of their work

• Record label : a firm that manages the brand and trademark, coordinates everything

difference between recorded music and movies

   ◦ In recorded music, compared to movies: a project requires fewer people, a smaller capital commitment, time to market is faster, execution/delivery processes have fewer steps, and a larger portion of the exploitation is via the internet

the music steps from idea to the public

  ◦ Song created.

    ◦ Artist matched with song.

    ◦ Artist records.

    ◦ Manufacture or Preparation.

    ◦ Recording distributed.

    ◦ Sales to public

four basic broadcast media

◦ AM (amplitude modulation).

◦ FM (frequency modulation).

◦ VHF (very high frequency)

 ◦ UHF (ultra high frequency)

Philo Farnsworth

Filed for a patent on the first complete electronic television system, which he named the Image Dissector

• gave the first public demonstration of a complete all-electronic television in 1934

what is analog

• Analog describes how human beings perceive the world (sight and sound) through continuous waves of light and sound that vary in amplitude, phase, or other properties

• analog television exploited these properties to create the illusion of moving images

tyoes of radio stations

 ◦ AM stations: Due to susceptibility to interference, they primarily host talk radio and news programming.

    ◦ FM stations: Primarily host music radio and public programming.

    ◦ Digital stations (HD Radio): The digital information is "piggybacked" on a normal AM or FM analog signal, making it a "hybrid" format.

    ◦ Satellite station: In the U.S., Sirius XM Satellite Radio provides digital radio service via satellite

digital radio- hd radio

 ◦ The method used in the U.S. for simultaneously transmitting digital radio and analog radio broadcast signals on the same frequency is In-Band, On Channel (IBOC), which is trademarked as HD Radio (hybrid digital).

    ◦ The FCC selected HD Radio as the terrestrial digital audio broadcasting standard in 2002.

    ◦ HD Radio allows up to 4 stations per frequency, with FM providing CD quality audio

standard for digital tv

 ◦ The world is converting from older analog standards (NTSC, PAL, SECAM) to digital standards.

    ◦ The standard used in the U.S. is ATSC (Advanced Television System Committee)

federal communications commission (FCC) regulation

    ◦ Broadcasting is one of the few entertainment sectors heavily regulated by the government, specifically concerning frequency spectrum space and socially acceptable content57.

    ◦ The FCC is the U.S. government agency that regulates all non-Federal Government use of the radio spectrum (including radio and TV broadcasting) and all interstate telecommunications57.

    ◦ The FCC grants licenses and creates rules regarding station ownership

FCC key rules

   ◦ Local TV Multiple Ownership Rule: Allows owning two TV stations in the same Designated Market Area (DMA) with certain provisions58.

    ◦ Dual TV Network Rule: Prohibits mergers between or among ABC, CBS, Fox, and NBC58.

    ◦ Local Radio Ownership Rule: Sets ownership limits based on market size58.

    ◦ National TV Ownership Rule: Permits owning any number of TV stations nationwide, provided the group collectively reaches no more than 39% of U.S. television households

five main network categories

   ◦ English–language commercial (e.g., ABC, CBS, Fox, NBC, CW)59.

    ◦ Spanish-language commercial (e.g., Univision, Telemundo, TeleFutura)59.

    ◦ Specialty (e.g., Bloomberg, Food)59.

    ◦ Shopping (e.g., HSN)60.

    ◦ Religious (e.g., TBN, 3ABN)60

how do broadcasters generate revenue

    ◦ Broadcasters generate revenue by selling advertising61. They also earn revenue through sales to other networks, international sales, syndication, and packaged media (DVDs)61.

    ◦ In radio, advertising is the primary source of all revenue62.

    ◦ Advertising pricing is directly related to ratings

the rating system

   ◦ An audience measurement system calculated statistically by A.C. Nielsen Co. using Designated Market Areas (DMAs)6163.

    ◦ Measurement uses people meters connected to sets, VCR’s, cable boxes, and satellite dishes in a sample of homes63.

    ◦ Rating Points measure the percentage of all TV or radio owning households in a defined area tuned to a show63.

    ◦ Share represents the percentage of all switched-on sets tuned to a particular program

stated purpose of television

 ◦ To provide education, information, culture, and enlightenment64.

    ◦ Each public station is a locally owned and operated nonprofit corporation aimed at serving the community, and there is no national ownership

the productioin process (Tv)

  ◦ The stages include Concept Development, Packaging, Production Planning and Budgeting, The Deal, and Post Production, Completion, and Delivery

concept development (tv)

◦ Involves generating the initial idea, which can be an original idea (rare), a copycat program, a research-based program, a resurrection of an old idea, or a modification adapted from another medium (like a book or movie)

packaging (tv)

 ◦ A collection of key assets that differentiate a property and make it appealing to a network66.

• Key assets include Concept, Talent, Producer, Execution, Story line, and Writers66. Virtually every TV project is packaged

production planning and budgeting (tv)

 ◦ The producer must prepare a full budget, schedule, and production plan with each sale to assure timely delivery within available funds and to earn a reasonable profit6667.

    ◦ Planning includes a project plan (weeks) and a shooting plan (days)67.

    ◦ Budgeting is based on the plan, covering staff wages, studio costs, technical crew, sets, locations, and administration

The deal (tv)

    ◦ Focuses on obtaining financing and determining who owns the property68.

    ◦ Financing can come from internal working capital, customers/clients (licenses, split financing, buy outs), suppliers (studios), investors, banks, and foreign partners

post production and completion (tv)

    ◦ Post-production includes editing, special effects, sound mixing, and preparation of the completed master6869.

    ◦ Completion refers to the preparation of titles and credits

three distinct stages of broadcasting

    ◦ 1948–1980: Broadcast network oligopoly (ABC, CBS, NBC)70.

    ◦ 1980–2007: Multichannel/Cable (ESPN, CNN, USA)70.

    ◦ 2007–Present: Internet/Streaming (Netflix, Hulu, YouTube, Disney+)

streaming and cable subscription services

   ◦ For Multiple System Operators (MSOs) and other carriers, revenue is composed of approximately 65% Subscription fees and 35% Advertising revenue71.

    ◦ Premium services (like HBO) earn revenue through supplemental monthly fees from subscribers and payments for each view (PPV/VOD)

direct broadcast satellites (dbs)

  ◦ Refers to satellite television broadcasts intended for home reception, also called direct-to-home (DTH) signals73.

    ◦ The first communication satellite, Telstar, was launched in 196273.

    ◦ Major U.S. providers include DirecTV (1994) and Dish Network (1996)74.

    ◦ Funding sources include advertising (the dominant revenue stream), subscription fees, government/corporate/public sponsorship, and interactive televisio

convergence

    ◦ The merging of multiple products to form one product that integrates the advantages of all of them76.

    ◦ Examples include a smart phone incorporating a digital camera, MP3 player, camcorder, and PC functionality

over the top (OTT)

   ◦ Refers to audio, video, and other media transmitted via the Internet without needing a Multiple System Operator (MSO) or Direct Broadcast Satellite (DBS) provider77.

    ◦ Examples of OTT providers are Netflix, Amazon, Hulu, and HBO Now