Chapter 8

Choose the Channel

8.1 Global Channels of Distribution
8.2 Sports Distribution
8.3 Entertainment Distribution
8.4 Technology and Distribution
Media

Sports and Entertainment Marketing

© Thomson/South-Western
Winning Strategies
TiVo, Inc.

The term TiVo refers to both the service
and the company’s digital video recorder.

trying to distinguish itself from competitors

internet video

can view assorted clips free of charge

stream digital music

load photos

cable and satellite TV are main competitors
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Lesson 8.1

Global Channels of Distribution

Goals

Explain the importance of sports and
entertainment distribution.

List and describe distribution channels
for sports and entertainment.

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Terms

free enterprise

amphitheaters

venue

mass media

platforms

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GET IT THERE

distribution

involves the transportation and
dissemination of a product or service

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Economics of Distribution

free enterprise

an economic system that allows the
unregulated supply and demand of
products to drive the economy

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Global Challenges

Many countries discourage films
produced in other countries from
entering easily into their own countries.

restrictions

tariffs

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The U.S. has no formal barriers to the
import of audiovisual entertainment.

demand for foreign-produced
entertainment is low

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Disney in Europe

In 1949, Walt Disney hired a European
citizen to run the Disney distribution
operations in Europe.

Today, Disney character merchandise
can be purchased anywhere in the
world.

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How does distribution affect the success
of an event or product?

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THE CHANNELS

two major channels of distribution

live

media

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Live Events

amphitheaters

oval-shaped outdoor theaters with tiered
seating around a central staging area

venue

the facility where an event is held

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Via Media

mass media

the means of distributing the event to a
large volume of people (the masses)

provides massive marketing opportunities

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Radio

is unique

requires inexpensive equipment

readily available where other media is unavailable

Television

over 110.6 million U.S. households own at
least one television

male viewers between the ages of 18 and 49
are the target audience of most televised
sporting events

sponsors’ advertising is geared to the target
audience
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The Internet

has sent shock waves through the major
traditional media

As Internet technology improves, creative
ideas emerge for its use to enhance and
complement the older channels of
distribution.

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Delivery Options

platforms

types of delivery systems

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Name two major channels of distribution
for sports and entertainment.

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Lesson 8.2

Sports Distribution
Goals

Discuss distribution and sponsorship of
amateur sports and recreation.

Discuss the distribution of college
sports.

Discuss the distribution of professional
sports.
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Terms

Title IX

cartel

league agreement

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AMATUER SPORTS AND
RECREATION

amateur athlete

unpaid

plays for enjoyment and challenge

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Fitness and Fun

The recreation industry is driven by:

health

leisure time

money

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Facilities versus Wilderness

A balance must be struck between the
need for outdoor recreation and the
need to preserve the environment.

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Getting Access

Participation in recreational sports is
directly related to income.

Title IX

a 1972 amendment to federal education
law

prohibits discrimination against females in
high school sports

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What factors affect the development of
recreational sports facilities?

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COLLEGIATE SPORTS

A winning college team has economic
implications for its:

school

community

region

state

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Football Rules

The Bowl Championship Series (BCS)

in 2006, participating teams received between
$14.8 and $18.3 million

sponsors pay for teams’ travel and participation
expenses

sponsors want a sell-out crowd and a large TV
audience to maximize revenue

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College Team Rankings

High BCS ratings

equate to big money

determine which teams play in the national
championships

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What influences which games are
distributed via national television?

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PROFESSIONAL SPORTS

In market driven economies,
professional sports are distributed based
on demand.

In government controlled economies,
distribution of sports is tightly controlled.

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Worldwide Coverage

The 2006 FIFA World Cup matches:

had a combined audience of 32 billion
people

were broadcast in HDTV

took three years to plan

had more than 300 broadcast partners

provided a disposable arena for 10,000
fans of the final games

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Political Football

Some countries with restrictive governments
prohibit and/or censor the broadcast of
games.

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Distributing the Game

In the U.S., demand for professional
sports teams exceeds supply.

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cartel

a combination of independent businesses
formed to regulate production, pricing, and
marketing of a product

league agreement

controls the marketing mix and governs the
distribution of the games

Special legislation exists to exempt
professional sports teams from federal
antitrust laws.

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How Distribution is Decided

Regions with a large potential customer base
are considered favorable for the location of a
team.

subsidize

to financially back a team

often with public funds

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It Takes Money

expansion fee

the price that existing leagues’ owners set for the
new owner of a franchise

Corporations will pay high fees to get their
name on a stadium.

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Nonstop Distribution

Through assorted media outlets, the
NFL offers related coverage 24/7.

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Why would a city want a professional
sports team in its area?

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Lesson 8.3

Entertainment Distribution
Goals

Explain the distribution of movies.

Discuss the changing formats of music
distribution.

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Terms

art-house movies

wide release

movie preview

docking station

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AT THE MOVIES

Barcelona, Spain shows more than 80
movies daily.

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The Big Screen

Movies are made with the demographics of a
particular audience in mind.

movie preview

the release of a movie to a limited number of
theaters prior to its official release

art-house movies

outside the mainstream of popular subjects

often made by independent filmmakers

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Managing the Costs of Movies

low-budget movies

cost less than $250,000 to produce

wide release

national distribution of a movie to a
thousand or more theaters concurrently

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Watch It at Home

Netflix opened a new channel of
distribution for entertainment.

online DVD rental

mails movies to subscribers

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List at least three ways that movies are
distributed.

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MAKING MUSIC
Marketing the King

The appeal of an icon offers a variety of
opportunities to distribute music and
related products globally.

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From Vinyl to iPod

digital files

Music stored on a digital file can be played
on personal computers or portable media
players.

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Jumping on the Bandwagon

Producers of high-end electronic stereo
systems jumped on the digital
bandwagon.

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docking station

enables iPods to be connected to speakers
that project the music throughout a room

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What changes in music distribution did
portable digital music players bring?

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Lesson 8.4

Technology and Distribution

Media
Goals

Describe the convergence of sports and
entertainment media.

Explain the changes brought about by
digitalizing music.

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Terms

podcast

vertical integration

MP3

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MEDIA MERGE

The lines between the various
information, communication, and
entertainment media are becoming
more and more blurred.

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Cable Mania

Initially, there were three TV networks.

ABC

NBC

CBS

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podcast

a way of distributing multimedia files over the
Internet for playback on computers, iPods,
cell phones, and other mobile devices

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Digital Delirium

All television transmissions must convert from
analog to digital format by February 2009.

After analog transmissions stop, a set-top
converter box will be required to use an
analog TV.

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Space-Based Radio

Satellite radio systems have three
components.

satellites that orbit the earth

ground stations that transmit signals to the
satellites

radio receivers that unscramble the signals for
listeners

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satellite radio

provides services on demand

uninterrupted service from coast to coast

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Mega Distribution

broadcast webs

groups of related entertainment
businesses that produce shows or provide
services for other group members

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vertical integration

when one company controls several different
areas of the same industry

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Disney is vertically integrated.

seeks to create cross-promotional
opportunities

can market both advertising and
entertainment to the world

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Name two advantages of satellite radio
over traditional radio.

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DIGITAL PLATFORMS

From a business planning perspective, it
is difficult for sports and entertainment
distributors to keep up with
technological changes.

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The Internet Music Revolution

file-sharing

making files available for others to
download

piracy

unauthorized copying

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Lawsuits can be filed against computer
owners who have a large collection of
illegally obtained, copyright-protected
materials.

MP3

a digital audio encoding and compression
format designed to greatly reduce the amount
of data required to represent audio

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lossy

a method to compress music and then
decompress it in a way that does not
noticeably affect the quality

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Why is there only a limited amount of
music available in the MP3 format?

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PERFORMANCE INDICATORS
EVALUATED

Understand the impact of hurricanes and
the need for a guest safety plan.

Realize the importance of explaining a
preparedness plan to prospective hotel
guests.

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Design an effective multimedia presentation
that outlines the dangers of hurricanes and
explains the safety plan.

Explain all aspects of the multi-media
presentation.

If applicable, demonstrate teamwork that
involves all members in the presentation.

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THINK CRITICALLY
1. Why does a multimedia presentation work
well for this type of project?
2. Why is a multimedia presentation more
effective than a printed document?
3. Why should the hotel invest money in this
project?
4. How would this multimedia presentation be
distributed to the intended customers?

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