With the rise of Internet platforms providing both legal and illegal file sharing utilities, media companies – especially the ones focusing theatrical cinema markets – are facing new problems and difficulties to remain merchantable in opposition with their online competition.
With the beginning of the new century, the number of sales, as to say the worldwide number of cinema attendances, experienced an ongoing stagnation or even a decrease. In order to cope with this challenge, international film production companies and cinema chains are challenged to develop new strategies if they mean to endeavor market changes.
One possibility to attract a larger audience to the cinemas could be the usage of stereoscopic 3D technology, due to the lack of an online substitute. This phenomenon is not new. When, in the 1950s, television started to become part of the average households and cinema attendance numbers collapsed, 3D films experienced a heyday.
The task of this research is to compare the former boom with today's trend and to evaluate whether the stereoscopic technology is a proper tool to enhance sales in terms of cinema attendance for international media companies.
Table of Contents
1 Introduction
1.1 Background information
1.2 Problem Statement
1.3 Research question
1.4 Methodology and structure
2 Historical Overview
2.1 The Concept and Origins of Stereoscopy
2.1.1 The Discovery of the Stereoscopic Effect
2.1.2 Dissemination of Stereoscopy Through 3D Photography
2.2 The Development of Stereoscopic Cinema
2.3 3D Cinema on the Rise
2.3.1 Natural Vision
2.3.2 Bwana Devil Points the Way
2.4 The Golden Age – 3D’s First Economic Boom
2.4.1 Four Years of Economic Exploitation
2.4.2 The Decline of Stereoscopy
3 Today’s Trends
3.1 The Current Renaissance
3.2 The Influence of Digital 3D on the Market Structure
3.2.1 Digital 3D as Leverage to Digitize Distribution
3.2.2 3D Television
3.3 The Commonalities and Differences between The Golden Age and the Current Renaissance
3.3.1 Competition through Substitute Products
3.3.2 Successful Ignition
3.3.3 Distributional Challenges
3.3.4 Quality Differences
3.3.5 Persistance of Stereoscopy
4 International Marketing Strategy for the Usage of 3D Films
4.1 The Exploitation Windows
4.2 Incorporation of Steroscopy in the Marketing Instruments
4.2.1 The 4 Ps of the International Movie Marketing Mix
4.2.1.1 Product Policy
4.2.1.2 Price Policy
4.2.1.3 Distribution Policy
4.2.1.4 Communication Policy
4.2.2 Standardization Versus Adaptation
5 Conclusion
Objectives and Research Scope
This bachelor thesis investigates the role of stereoscopic 3D cinema as a strategic tool for international media companies to combat declining cinema attendance caused by digital piracy and home entertainment competition. The primary research question addresses whether stereoscopic cinema effectively increases profitability and how it should be strategically integrated into international marketing activities.
- Analysis of the historical 1950s 3D boom and its subsequent decline.
- Evaluation of the current "3D Renaissance" and its impact on market structure and digitalization.
- Examination of the "success-breeds-success" phenomenon in movie exploitation windows.
- Application of the 4 Ps marketing mix (Product, Price, Place, Promotion) to stereoscopic 3D film distribution.
- Comparison of global standardization versus local adaptation strategies in 3D film marketing.
Excerpt from the Book
4.2.1.2 Price Policy
Price policy is usually a minor detail when it comes to marketing strategies for film companies. As the fee for a ticket to a screening is usually set at a consistent level by the distributor, it is virtually impossible to differentiate a product by the price. The admission charge at the cinemas constitutes a firm fixed price that resembles the marginal utility consideration of every step in the value chain of the film industry (Seikmann 1997, p. 157).
Regarding the DVD/Blu-Ray market, possible price variations are very low and mostly related to the age of a film. Thus, price policy is also very limited for the DVD/Blu-Ray distribution. The only resort of the exploitation chain that is very amenable for large price variations is the TV distribution. Distributional rights for TV are the consequence of negotiations between the TV channel and the entitled holder which conclude in individual contracts. Therefore, TV distribution can be regularly influenced by price policy.
When it comes to stereoscopic cinema, the tide is turning, as higher prices for 3D films are widely accepted and became standard. This policy is justified with 3D being communicated as an added value and also it is vital for the film studios as the production costs of 3D are higher. Ticket prices for 3D movies are usually about 20% higher than other movies, which means a plus of about $3 per ticket in the USA (Vanderpool 2012). Higher prices for 3D movies are also vital for strategic marketing reasons in order to maintain a premium image for stereoscopy and to convince the customer of the additional benefit. The audience largely accepts the differentiated pricing methods, mainly because a large proportion of 3D spectators deliberately chooses a binocular show. According to the PRIME research, more than 80 per cent of the audience of a stereoscopic movie projection deliberately decides in favor of 3D (Wegener etc. 2012, p. 97).
Summary of Chapters
1 Introduction: Provides the background on declining cinema attendance due to digital competition and defines the research aim of evaluating 3D technology as a strategic solution.
2 Historical Overview: Chronicles the origin and development of stereoscopy, specifically focusing on the 1950s boom, its commercial successes like Bwana Devil, and its eventual decline due to lack of standardization and competition from Widescreen formats.
3 Today’s Trends: Analyzes the modern "Current Renaissance" of 3D, highlighting how 3D served as a catalyst for the digitalization of cinema chains and how it integrates with home entertainment markets like 3DTV.
4 International Marketing Strategy for the Usage of 3D Films: Applies traditional marketing theory (4 Ps) to the 3D film sector, discussing product adaptation, premium pricing strategies, distribution logistics, and promotional tactics like trailer and poster design.
5 Conclusion: Concludes that 3D is a sustainable and essential tool for modern media companies to maintain competitiveness, provided it is properly integrated into the overall marketing and exploitation strategy.
Keywords
Stereoscopic Cinema, 3D Film, Movie Marketing, Digitalization, Cinema Attendance, Exploitation Windows, 4 Ps Marketing Mix, Film Industry, Box Office, Home Entertainment, 3DTV, Standardization, Cultural Artifact, Profitability, Sustainable Growth.
Frequently Asked Questions
What is the core focus of this bachelor thesis?
The work examines whether stereoscopic 3D technology serves as an effective marketing tool for international film companies to boost cinema attendance and counteract revenue losses from digital piracy.
What are the primary thematic areas covered in the document?
The thesis covers the historical evolution of 3D, the impact of digital technology on modern cinema market structures, the application of marketing strategies to 3D products, and the long-term sustainability of the current 3D boom.
What is the central research question?
The central question is: "Is stereoscopic cinema a useful tool to increase profitability and how should it be implemented in international media companies' marketing strategies?"
Which scientific methods were applied in this research?
The research relies on an analysis of existing statistical data, evaluation of historical sales figures compared to recent trends, and the application of established marketing theories, specifically the Marketing Mix (4 Ps), to the movie industry.
What does the main body of the work address?
The main body investigates the 3D exploitation chain, the digitalization of cinema infrastructure, pricing strategies for premium 3D content, and the balance between global standardization and regional adaptation in film marketing.
Which keywords best describe this research?
Key terms include Stereoscopic Cinema, Movie Marketing, Digitalization, 3DTV, and Profitability within the film exploitation chain.
How does the author view the "Golden Age" of 3D compared to the current era?
The author argues that while the 1950s boom was short-lived due to lack of standardization, the current "Renaissance" is sustainable because it is deeply intertwined with the fundamental digitalization of the global cinema value chain.
What role does the "success-breeds-success" phenomenon play in 3D marketing?
It refers to the idea that theatrical box office performance acts as a critical marketing driver for subsequent exploitation windows, such as DVD/Blu-Ray and Pay-TV, making 3D a vital anchor for broader media revenue.
- Citation du texte
- Philip Jaime Alcazar (Auteur), 2012, Marketing of Stereoscopic Cinema, Munich, GRIN Verlag, https://www.grin.com/document/210841
