Audience and Institution Practice Essay

          One of the most known multi-media conglomerates is Disney. Within the last century, Disney has expanded its company to become a well-known industry it is today. “Disney’s total revenue in 2019 was approximately $70 billion”, according to Statista. Disney consists of four subsidiaries: The Walt Disney Studios, Theme Parks and Resorts, Disney Consumer Products, and Media Network. Due to Disney’s media- ownership of multiple platforms such as Disney Princesses and Marvel Comics, Disney and its subsidiaries can produce a wide range of products: television programs displayed on Disney Channel, soundtracks released by Disney’s record label, merchandise and print produced by Disney Consumer Products and Disney’s Media Network develops video and online games. With each of these branches collaborating, Disney can market and promote their film through these products- components make up a good marketing strategy. Through strategic marketing strategies, Disney was able to accumulate a vast amount of wealth and forge an empire. Marketing plays a significant role in the film industry because it predetermines a film’s success and potentially generates a vast amount of revenue. 

         Marketing plays a crucial role in the film industry because films have the potential to generate a vast amount of revenue. In the marketing process, conglomerates’ objective is to update the audience with a continuous stream of updates and news to have the target audience aware and hooked on films. So, conglomerates like Disney would host special events to promote the upcoming release of their films. Disney used synergy to promote the release of “Beauty & the Beast” (2017). Disney exercised its corporate strategy to promote the upcoming release by hosting a special edition of the ‘Bachelor’. In this particular episode, a couple of movie stars hosted this event to promote the release. This would cause the audience to be aware of the film. In addition to the special edition episodes, Disney used synergy to encourage viewers to watch the film. On Disney Channel and ABC, Disney would play the trailer of the upcoming movie and the original animated ‘Beauty and the Beast’ (1991) more often. This would make people more aware of the release of the new film and cause the audience to be more excited about the new adaption of the original film.

         Disney also used cross-promotion and cross-media convergence to the release of ‘Guardians of the Galaxy Vol.2’.  Disney collaborated with multiple campaign partners such as ‘Dairy Queen’, ‘Hasbro’, and Lego to increase awareness of the film. One of the marketing campaigns, Dairy Queen released Guardian of the Galaxy theme cups along with their flavor. Since a significant amount of people go to Dairy Queen for a blizzard, more people would be aware of the movie and the release date because the release date is printed on the cups. This would encourage people to watch the film. Thus, more revenue would be generated from these sales.   As a result, Disney made an estimated $1.3 billion worldwide from ‘Beauty and the Beast’ and approximately $39 million from ‘Guardians of the Galaxy Vol. 2’.  This demonstrates synergy, cross-promotion, and cross media-convergence allowed Disney to have an efficient and effective marketing campaign to potentially gain a vast amount of revenue.

         Marketing plays a significant role in the film industry because it predetermines a film’s success. A film’s release strategy can contribute to a film’s success. If the film had an effective release strategy, theoretically the film is going to be successful. The release strategy of ‘Black Panther’ was on January 29th, 2018, there was a red-carpet premiere and the film premiere in commercial theaters in the United States on February 16, 2018. This release strategy was strategic because it attracted its target audience, African Americans, to watch the film since February is Black History Month in the United States. Furthermore, marketing in media can contribute to a film’s success.  Since different audience consumes media in different ways, having a wide range of media allows the target audience and other audiences. For instance, Disney’s marketing strategies of ‘Black Panther’ (2018). During the release of ‘Black Panther’, Disney’s Consumer Products released multiple movie posters and magazine covers of the leading actor, Chadwick Boseman. Also, NPR aired a story on how ‘Black Panther’ impacted Saudi Arabia’s strict ban on films since the film ban lasted for thirty-five years. The film continued to gain attraction after its release through its soundtrack. Featured songs such as Kendrick Lamar, Swae Lee, and The Weekend attracted American audiences because most of the artists are prominent R&B/ Hip-Hop performers. Through media, it encouraged African Americans to continue to watch the film because the film represented strong African heroes and Black empowerment.  Although the film’s release was in late January, ‘Black Panther' was expected to win several American awards at major award ceremonies such as Golden Globes and Academy Awards.  This demonstrates with the combination of strategic release strategy and media, marketing can predetermine a film’s success.

        There are a few disadvantages of marketing. As conglomerates expand their company and produced successful films, companies are pressured to maximize their revenue by competing against their competition at the box-offices. According to the article “Universal Is Disney’s Chief Rival Because It Isn’t Trying to Be Disney”, it states  “once you get into that $250 million-plus range before marketing, you’re putting a lot of pressure on a project to circle $1 billion globally”. This shows the pressure companies are under to produce a successful film. When a company is under stress, it causes the company to focus on beating the competition. For instance, Sony released the Jumanji franchise during the release of Disney’s Star Wars. Although the Jumanji franchise was successful, the competition between the conglomerates at the box office may cause Sony to not be as successful as Disney. Companies need to identify which marketing strategy works best for their company without risking funding on the competition. NBC Universal is an example of this. Although NBC Universal’s five biggest gross movies cost about 156% less than Disney, NBC Universal currently sits with an estimated 13.5% of the domestic market and approximately $1 billion in the North American box office. This shows companies don’t have to compete against their competition by using other market strategies.

            In the final analysis, it has become apparent marketing is essential in the film industry. Companies need to find a market strategy that works best for their company. As shown in the case studies, Disney’s good marketing strategies of synergy, cross media-convergence, and
media ownership contributed to the film’s success and its total revenue gained at the box office. This combination of marketing strategic allowed Disney to forge its international empire.