Relationship between Movie Industry and Marketing with Respect to Cultural Economy

Relationship between Movie Industry and Marketing with Respect to Cultural Economy

Elif Ulker Demirel (Trakya University, Turkey)
DOI: 10.4018/978-1-4666-6635-1.ch028
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Today, culture and art industry have expanded and diversified thanks to the increasing interest and demand for culture and art products in the world. As a result, a structure, which comprises conventional components of marketing, has emerged in order to fulfill this demand and bring together the products of art and their target market. As an element of the culture and art industry, cinema industry constitutes an important part of everyday life. Cinema has gone through technological advancements and has become an industry, which feeds many different lines of business. This chapter examines the movie industry, which has an evolving and diversifying structure and which is considered an important element of the art and culture industry. The aim of this research is to create a theoretical structure between the relationship of marketing and the movie industry, especially at the point where the movie industry brings the audiences together.
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The growing importance of culture is closely connected to the changing economic trends. First of all, the expansion of the cultural sector is related to an evolution in societies from economies based on manufacturing industries to economies based on the service sector. Second, changing lifestyles and the increase in leisure time spurred demand for various cultural and recreational activities. The cultural sectors assume an intermediary role in the strengthening and diversification of the bonds between cultural life and cultural economies (Enlil, Evren, & Dincer, 2011, p.169).

Substantial contributions on the cultural economy were caused by cultural industry improvements. In conjunction with varying economic conditions, it turns out that people are more dominant at the point where the demand of culture and art products are determined. People are searching for different ways and different point of views on cultural perspectives, and expecting to see various approaches. Demand on culture and art products are going up with variations at the point of the supply side. This process which differentiates the market according to the people who demand art itself (art lovers-followers) and art creators (artist), makes feasible the existence of a market that provides fast circulation.

Cinema became an important factor that comes out after all other traditional art branches and with reference to this specification has been called the “seventh art” (Özön, 2008, p.8). Cinema has existed for more than a century and takes place in people’s daily lives. Cinema is an element of art just like any other arts, but covers everything and because of popular nature, reflects the changes on society more than other arts (Monaco, 2013, p.222).

When the cinema industry revelation is an issue, talking about only an invention will not be enough. This process that begins with the “Kinetoscope” which is an invention of Thomas Edison became a rapidly improving and growing industry with on-going combination of various entrepreneurs and distinctive technological improvements.

In addition to that historians indicate the beginning of cinema as the experimental show of Louis and Lumiére brothers at 21 March 1895 to a minor crowd or first open public show at 28 December 1895, which occurred at Grand Café in Capucines Boulevard at Paris. Most important specification of “Cinematograph” which invented by Lumiére brothers is the ability reflect picture to the wall (Güral, 2013, p.3). Key innovations in the emergence of the film industry can be seen in Table 1.

Table 1.
Key innovations in the emergence of the film industry
YearProduction FunctionDistribution FunctionExhibition Function
1894Peephole kinetoscope
Films exhibited in a variety of outlets
1897Projectors appear
1899Films begin to appear in vaudeville programs
1905Nickelodeons begin to appear as dedicated exhibition outlets for films
1906-Motion Picture Patents Cooperation is created
-Multi –reel films appear
Local exchanges appear
1909Travelling road shows and the state rights system appear as distribution alternatives for multi-reel films
1910Distribution companies appear following earlier cartel activity
1912The first feature film is releasedIndependent distribution companies with more proactive roles begin to appearMovie theaters begin to displace nickelodeons
1914Producers and distributors begin to vertically integrateProducers and distributors begin to vertically integrateMovie palaces begin to appear
1916The central producer system is introduced
1920’sStudios begin to buying theaters

(Adapted from Mezias, S. J. & Kuperman, J. C. (2000). The Community Dynamics of Entrepreneurship: The Birth of the American Film Industry 1895-1929. Journal of Business Venturing, 16, p. 215.)

Key Terms in this Chapter

Post-Production: Distribution and exhibition process which brings the audiences and movie together.

Movie Industry: An industry branch in order to produce and develops technologies and commercial instruments for movie making process.

Cultural Economy: The subdivision of economics that studies the relation between with culture and economical values that created by culture itself.

Ticket Prices: Payment for watching a movie in movie theaters by moviegoers.

Movie Promotion: A process that begins after the completed movie production by movie distributors.

Production: Shooting process of movie after competing all preparation phases.

Movie Marketing: A branch of marketing literature that deals with movie industry and marketing.

Movie Distribution: A process for gathering audiences with the final product that begins after the completed movie production.

Pre-Production: Process of preparing all components that related with movie production.

Marketing Mix: Business tool in the marketing literature which combine product, price, promotion and place (4P).

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