In Section B, we investigate the institutions and audiences of Hollywood and the British film industry. Students develop case studies on individual films and production companies that produce or distribute films in the UK, the US and globally.
Our subject content:
Answer the question below in relation to the film industry, making detailed reference to examples from your case study material to support the points made in your answer. (The following exam questions relate to the OCR specification)
June 2018
What is the impact of the increase of digital and online technologies on audiences in the media area you have studied?
June 2017
‘Marketing is vital to the success of both established and new media products.’ To what extent do you agree with this statement in relation to the media area you have studied?
Examiner's report below:
What is the impact of the increase of digital and online technologies on audiences in the media area you have studied?
June 2017
‘Marketing is vital to the success of both established and new media products.’ To what extent do you agree with this statement in relation to the media area you have studied?
Examiner's report below:
June 2015
To what extent does media ownership have an impact on the successful distribution of media products in the media are that you have studied?
Evaluate the role of digital technologies in the marketing and consumption of products in the media area you have studied.
January 2013
What impact does media ownership have upon the range of products available to audiences in the media area you have studied?
June 2012
"Cross-media convergence and synergy are vital processes in the
successful marketing of media products to audiences.” To what extent do
you agree with this statement in relation to your chosen media area?
June 2011
"Successful media products depend as much upon marketing and distribution to a specific audience as they do upon good production practices." To what extent would you agree with this statement, within the media area you have studied?
June 2011
"Successful media products depend as much upon marketing and distribution to a specific audience as they do upon good production practices." To what extent would you agree with this statement, within the media area you have studied?
The following questions are taken from the CIE exam board
June 2017
How important is cross-media convergence and synergy in the media area you have studied?
[50]
June 2017
How do media institutions target national and local audiences in the media area you have studied?
[50]
from June 2021
Analyse how media institutions are using different platforms to engage with their audiences.
from June 2021
To what extent has social media altered how media products are consumed?
The Cinema Experience
How will the cinema experience change over the next few years?
Read this article about augmented reality, virtual realty, 4D cinema, glasses-free 3D, laser projection, mobile-friendly cinema, boutique cinema
Read this article about augmented reality, virtual realty, 4D cinema, glasses-free 3D, laser projection, mobile-friendly cinema, boutique cinema
TRENDS
The cinema industry currently enjoys record audiences (UK) and revenue (US) despite a congested market place, the dominance of the majors and competition from digital streaming services.1. Hollywood and Silicon Valley gear up for a blockbuster of a battle
Hollywood and Silicon Valley gear up for a blockbuster of a battle
Simon Duke, Technology Business Editor 20.12.18 The Times newspaper
The British box office is on course for its best year since 1971. Filmgoers are expected to have clocked up 176 million visits for this year, a level last exceeded when The French Connection and Diamonds are Forever were hits. It’s a similar picture across the Atlantic, where takings are forecast to top $12 billion for the first time. Because they’re spending so much time glued to their smartphone, consumers crave real-world experiences and contact with their fellow man.
The internet streaming giants are pressing their bets on in-house film productions, while chasing the glitz of the Oscars and Golden Globes with just as much zeal of any of Tinseltown’s big players. Netflix had high hopes for Roma, by the Mexican director Alfonso Cuarón, and is expected to release 90 feature length films next year.
It has prodigious firepower to fuel its Hollywood dreams. It spent as much as $13 billion on content this year, with its budget set to expand to more than $22 billion by 2022, according to Goldman Sachs. About 85 per cent of the total will be spent on its own TV shows and films. But Netflix is not aiming for a meaningful slice of global cinema takings. It sees films as bait to hook more subscribers. Netflix has 140 million paying customers, and needs to keep growing to stay on top of its $12 billion debt pile.
Its assault on the silver screen sets the scene for a ferocious battle between Hollywood and Silicon Valley next year. So far traditional media and the new entrants from the technology sector have rubbed along quite amicably. Netflix and Amazon have handed many billions of dollars to content creators for streaming rights over recent years. However, the period of peaceful co-existence is drawing to an end.
Film studios have always relied on distributors to put their content in front of consumers. Traditionally, cinema chains and TV stations have been their main route to viewers. More recently download stores and streaming sites have taken on that role. However, content producers are increasingly looking to cut out the middlemen. Next year Disney will launch its own streaming service, and will pull Pixar and Marvel films from Netflix in the United States. Comcast, the American entertainment and cable giant that has just taken over Sky, is expected to follow suit, as is the owner of Warner Bros studios.
This trend creates a problem for the streaming services. Studios provide an estimated one fifth of the content available on Netflix. The potential loss of these films and series could force an even greater rise in its production spending than envisaged. Breaking into streaming will come at a huge cost to content creators. Netflix agreed this month to pay Warner about $100 million for the streaming rights to Friends. If the studio wanted to run it exclusively on its own service, it would have to sacrifice that income. Settle back and order some popcorn. This power struggle promises to make for gripping entertainment.
2. Amazon in talks to release original films in Imax cinemas in 2019
Amazon in talks to release original films in Imax cinemas in 2019
Hannah Boland 31.12.12 The Telegraph
Imax chief executive Richard Gelfond had suggested the company was speaking to Amazon earlier this year, saying it was “in active discussions with all of the streaming [services] about an Imax release”, but it was not clear how soon those films may be in cinemas.
Amazon said no decision had been made over where The Aeronauts would be released yet, but that it was in talks with a number of different parties. The company has not worked with Imax in the past, and this would be a first. It has released nine films which it financed and developed in UK cinemas, including Wonderstruck and The Wall.
Rival streaming service Netflix has partnered with Curzon cinemas in the UK for the theatrical releases of a number of its original films, notably Beasts of No Nation and Roma.
Amazon moving more of its films into physical cinemas is likely to fuel speculation that the company is still considering buying its own cinema chain.
It is also ramping up the roll-out of its Amazon Go stores, which are essentially cashierless and track customer purchases using cameras and sensors.The Sunday Telegraph earlier this month reported that Amazon Go was considering opening one of the stores near Oxford Circus station in central London, expected to be the company’s landmark store in the country.
3. The Dominance of the Big Six: Disney
As the magical nanny floats back into cinemas, Disney has seven more billion-dollar blockbusters for 2019Jonathan Dean 16.12.19 The Times
Thanks to its potent mix of superheroes, ice queens and realistic digital lions, Disney looks set to help make next year the most successful in British cinema history. That is some feat given 2018 is predicted to end with the UK’s highest cinema attendance figures since 1971.
Disney’s business model is focused entirely on blockbusters, with big hitters in 2019 including the debut of the female superhero Captain Marvel, remakes of The Lion King and Dumbo, the fourth and reportedly final Avengers movie, Toy Story 4, Frozen 2 and the ninth Star Wars episode. It is part of a plan to produce fewer films but have them all be successful. There will have been nine Disney films in 2018, compared with 20 in 2003.
Only 36 films have made more than $1bn (£800m) at the worldwide box office — the biggest earner is still the 2009 sci-fi fantasy Avatar, with $2.8bn — but it is not outlandish to suggest all seven movies will break the billion-dollar boundary. Indeed, the Avengers and Star Wars instalments could earn $2bn each, based on the franchises’ huge past box office success and factors such as a booming Chinese film market.
“In the UK, Disney have gone from 12% roughly market share to 20%-plus in the past eight or nine years,” said Tim Richards, chief executive of Vue, the UK’s third-largest cinema chain. “They’ve had the No 1 film for the past four years.” These were Star Wars: The Force Awakens in 2015; Rogue One: A Star Wars Story in 2016; Beauty and the Beast in 2017; and 2018’s Avengers: Infinity War.
For Richards, a key to the ever-increasing hold on blockbusters Disney has is down to an increase in the diversity of its films. For instance, Black Panther, released earlier this year, made more than £50m in the UK, partly by catering for a minority audience previously ignored by mainstream film makers.
“Studios are finding these new audiences now and have broadened their film access very dramatically,” said Richards. The Disney slate for next year includes the studio’s first female-led superhero film, Captain Marvel, while The Lion King will see one of the world’s most famous pop stars, Beyoncé, voicing a character.
Such strategic moves away from what has traditionally been a white, male-dominated landscape bring in crowds — often female — who previously stayed away.
The huge success of the past 12 months has come as a surprise, given the only Star Wars film was the flop Solo and there was no James Bond movie released. Clapp, however, points to eight films that made more than £40m in the UK this year including Mamma Mia! Here We Go Again, The Greatest Showman and Bohemian Rhapsody: three simple, feelgood musicals that appeal to audiences who needed some respite from the news. Mary Poppins Returns fits into that bracket too, as will next year’s Frozen 2.
Richards said the next three to five years “are potentially the biggest in history”. The reason? Oscar favourite Roma, a film Netflix distributed first in cinemas. He added: “That is a game-changer. They’ve done something they said they’d never do. This is a company that said it would never release its movies theatrically first, and they put it in cinemas. It’s for only three weeks, but they got a taste for the fact they can drive income from it without affecting their subscription base.
“You’re going to see Netflix releasing films in cinemas. Amazon is already there and Apple wants [in on] it too. That’s three massive companies who weren’t even there five years ago, committed to releasing high-quality first-run film productions.”
CAPTAIN MARVEL Release date March 2019
4. BRITBOX: BBC and ITV announce a new streaming service
Launching as a joint venture in the second half of 2019, the BBC and ITV have conformed their joint vision for a new UK-based pay streaming service. The platform promises to be the biggest collection of British TV content ever assembled in one place as well as new commissions specifically tailored for the service, like Netflix.
Channel 4 and NBC Universal were initially involved in talks but C4 is a publisher-broadcaster and the rights to its shows are controlled by its many suppliers whereas the BBC makes much of its content via BBC Studios as does ITV with ITV Studios.
BritBox already exists in the US and has exceeded expectations, with over half a million subscribers. Reports suggest that it will cost £5 a month.
It means that the BBC will stop licensing its content to Netflix in an attempt to drive subscribers to the new UK service.
Why is this happening now? All UK broadcasters are very nervous about the market power of Amazon and Netflix. There is also growing demand in the UK for streaming services, with more than 12 million households signed up to at least one. ITV commissioned research that showed that 43% of homes were interested in subscribing to a new service which features British content. This increases to 50% in homes that already have a Netflix subscription.
Wonder Woman made $820m for Warners so naturally Disney needed a female superhero too. Step forward Brie Larson as the titular pilot with powers.
NETFLIX, launched 2012, 137 million subscribers worldwide; 29 million joined last year, which is 33% higher than in 2017. All the major platforms - Roku, Apple TV, Free TV, Chromecast, Android TV - support Netflix.
AMAZON PRIME VIDEO, launched 2014 (LoveFilm re-branded), 100 million Prime subscribers, 40 million Prime Video in 2017
HULU, 20 million subscribers, owned by Walt Disney, Comcast and AT&T
6. HOW DISNEY IS ADAPTING TO A STREAMING WORLD
Article hereAlthough slow to react, Disney (NYSE:DIS) has recognized the strategic importance of building its own streaming platform. Disney is now building three streaming services and intends to compete directly against Netflix. Disney will soon have a majority ownership of Hulu and recently launched ESPN+. Disney+ will be the flagship streaming service and is slated to launch in the back half of 2019.
Disney is starting from a technology disadvantage
While Disney has a vast content library, it has a technology disadvantage compared to Netflix. Netflix has operated its streaming service for over 10 years and spent $1.2 billion last year on technology alone. Netflix's cumulative investment in its technology platform has made the platform extremely user friendly and resource efficient.
To address its infrastructure needs, Disney acquired a majority stake in BAMTech, which forms the technology backbone of Disney's streaming services. The BAMtech acquisition was a smart move because it would have been extremely difficult to build the technology infrastructure from scratch.
BAMtech is already running ESPN+, and it appears to be doing a great job. On its Q1 2019 earnings call, Disney noted that BAMtech was able to handle half a million customers signing up for ESPN+ in the same day. Disney racked up over $1 billion in losses last year tied to its streaming efforts. If Netflix is any guide, then we can expect Disney's streaming investments to accelerate as it ramps up technology investment in its three services. However, it could take Disney years to catch up with Netflix's technology head start.
The larger the content library, the better
Operating as a Hollywood studio for nearly 100 years, Disney already has an impressive content library. However, the more content Disney's services have, the more customers it will attract.
To help scale up its content library, Disney is acquiring rival TV and film studio Twenty-First Century Fox (NASDAQ:FOX) (NASDAQ:FOXA) for $70 billion. The deal is pending final approval from regulators but will boost Disney's streaming services. Fox will provide Disney with several TV stations, valuable IP (including Avatar, X-Men, and the Simpsons), and an additional 30% stake in Hulu.
Disney+ is the flagship family oriented streaming service that will be launched in late 2019. Upon launch, expect Disney+ to have a catalog of over 400 movies and 7,000 TV shows from the Disney/Fox library. Disney will also release content exclusive to the Disney+ service based on popular IP. For example, the service will house an exclusive Star Wars TV spin-off and a live-action Marvel series based on Loki. Exclusive content will provide consumers an extra incentive to subscribe.
As it currently stands, Disney and Fox each spend roughly $8 billion on content per year. Expect the combined Disney, Fox, and Hulu to continue spending at a similar level. Adding those content budgets to the incremental spend at Disney+ totals more than $18 billion in content spend for Disney as a whole. For comparison, Netflix spent in the neighborhood of $8 billion on content in 2018.
Although Disney will initially have a technology disadvantage, its deep content library is where it will shine. Disney isn't resting on its laurels. The company appears to be ramping up content spend in order to maintain its legacy audience while building a streaming subscriber base.
FINAL NOTES
Marketing through social media
Consumers as producers
DISTRIBUTION
According to the FDA's 2017 handbook, audiences visit the cinema 2.6 times a year, and Simon Duke, Technology Business Editor (20.12.18 The Times) reports that the British box office is on course for its best year since 1971. Filmgoers are expected to have clocked up 176 million visits for this year, a level last exceeded when The French Connection and Diamonds are Forever were hits. It’s a similar picture across the Atlantic, where takings are forecast to top $12 billion for the first time. Because they’re spending so much time glued to their smartphone, consumers crave real-world experiences and contact with their fellow man.
HOWEVER, the internet streaming giants are producing in-house film productions, while chasing the glitz of the Oscars and Golden Globes with just as much zeal of any of Tinseltown’s big players. Netflix had high hopes for Roma, by the Mexican director Alfonso Cuarón, and is expected to release 90 feature length films next year.
Other distribution methods for indie films are made possible by Web 2.0 other than Netflix, such as Amazon Prime, iTunes, BitTorrent Bundle and Vimeo on Demand. Kickstarter is also a crowd sourced funding website which offers newer opportunities to fund and distribute film.
Most of my own film viewing (and my target audience's) is done online.
With Web 2.0, viewing online, piracy and the future of online distribution (crowd sourced movies and the role of You Tube), the industry faces future challenges. There are the rapid changes taking place in this industry from the traditional ways of distributing film through to the digital formats used today. As online platforms are being used to distribute and market films, they have big buying power. Netflix and Amazon were outbidding all the major movie studios at Sundance in January 2016. Amazon outbid Hollywood heavyweights Fox and Universal for the rights to distribute Manchester by the Sea—a Sundance debut. Amazon paid $10 million for the film, and gave it a traditional theatrical run to ensure it qualified for all the major awards. The film then streamed on Amazon Video.
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