Paramount Marketing Plan

Marketing Plan

by Andrew Baer, Claire Hertel, Trevor Jensen, and Vy Tran MKTG 3950 Integrative Marketing

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Table of Contents Introduction ................................................................................................................................... 3 Business Mission ...................................................................................................................................3 Targets....................................................................................................................................................3 Goals ......................................................................................................................................................3 Brief Statement of Strategy ....................................................................................................................4

Situational Analysis ...................................................................................................................... 5 Demand .....................................................................................................................................................5 Introduction ............................................................................................................................................5 Past Sales ...............................................................................................................................................5 Supply Data ............................................................................................................................................6 Potential Buyers .....................................................................................................................................6 Defining What to Measure .....................................................................................................................8 Types of Market Measurements.............................................................................................................8 Projecting Firm and Industry Sales and Potential ..................................................................................8 Buyer Behavior.........................................................................................................................................9 Individuals..............................................................................................................................................9 Households ...........................................................................................................................................10 Organizations .......................................................................................................................................12 Segmentation ..........................................................................................................................................14 Individuals............................................................................................................................................14 Households ...........................................................................................................................................15 Organizations .......................................................................................................................................16 Competitive Analysis .............................................................................................................................17 Existing Competitors ...........................................................................................................................17 Hypothetical Market Structure .............................................................................................................18 Potential Competitors...........................................................................................................................19 Predicting Competitor Behavior ..........................................................................................................20

Business Fundamentals .............................................................................................................. 21 Goals and Objectives .................................................................................................................. 21 Marketing Programs .................................................................................................................. 23 Market Program I: Individuals 19-65 for Films in Theaters .............................................................23 Overview ..............................................................................................................................................23 Strategy ................................................................................................................................................24 Tactics ..................................................................................................................................................25 Market Program II: Selling 4D Films to Theaters .............................................................................27 Overview ..............................................................................................................................................27 Strategy ................................................................................................................................................27 Tactics ..................................................................................................................................................28

Paramount Pictures 3 Introduction

Business Mission Paramount is a part of Viacom, a global entertainment media company that offers a wide array of media services ranging from television to motion pictures to other forms of digital media. Viacom’s business mission is stated as the following: Viacom strives to maintain a work environment that upholds the highest standards of business behavior. Our company values individuals who are ethical, work smart and share the dedication and passion that have made Viacom the success it is today and are crucial for continued long term success.

Targets After extensive market research, we have come up with two proposed targets going forward that Paramount should aim to hit. These targets include expanding on an established segment and helping with the creation of a new segment of consumers. Firstly, we will continue to target the individuals segment, more specifically those that fall into the age group of 18-64.

Secondly, we want to target a new segment in an emerging segment: organizations, mainly movie theaters, to start offering 4D movies on a commercial basis. We have several goals that will help us target these two segments.

Goals Our goal for the individuals segment that we plan to target are to simply beat our revenue from 2015, which was $675 million. Our goal for the organization segment that we plan to target includes partnering with AMC and getting 30% of AMC movie theaters nationwide to be 4D capable. This comes out to roughly 115 movie theaters. This includes retrofitting at least one amphitheater in those 115 theaters with everything needed to produce a high quality 4D experience.

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Brief Statement of Strategy Product – to help accomplish these goals, we plan on continuing to produce films that we believe will be box office hits. This also ties into our strategy for 4D. We need to produce films that will be enhanced by the sensory experience 4D has to offer, therefore we will need to evaluate which genres of films have the highest profit potential.

Price – for this industry, price is not a typical factor of competition. If ticket prices are too high, nobody will pay to go see that movie. Therefore, there is a set industry standard. However, for the 4D segment will we manipulate our price slightly to accommodate for the full sensory experience.

Promotion – we will continue to promote films through traditional and new forms of marketing and advertising in both segments. Previews are still the most effective way of advertising for films; however, we recognize that word-of-mouth (both positive and negative) can have significant impact on the proposed returns of movies.

Distribution – we plan continuing to distribute through traditional channels, namely movie theaters and possibly expanding into other forms of distribution such as streaming services.

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Situational Analysis Demand Introduction The company we are focusing on is Paramount Pictures, a motion picture subsidiary of Viacom that has been around since 1911. Over the years, the motion picture industry and the number of films produced each year has grown with the population. While the film industry has typically been dominated by theatrical productions; in recent years, movie streaming services have gained popularity and become the go-to outlet for moviegoers. This along with other factors, such as discretionary income and the state of the economy, influences the demand for paying for films. Comparatively, going to the movies is still one of the cheapest forms of paid entertainment, the market is large and continues to steadily grow. However, box office ticket sales and overall revenue are on the decline due to alternatives such as streaming services and On Demand and RedBox movie renting options.

Past Sales Over the past 10 years, Paramount Pictures has reached a peak of gross income. Within the last 5 years, there has been a decline in gross income that has been accompanied with a loss of market share and tickets just simply not being sold. There are several factors that seem to correlate with the demand and the market share either gained or lost by Paramount on a year to year basis. The first is movies in release. It is easy to see that as Paramount Pictures has more movies in release, gross income goes up, ticket sales increases and Paramount can grab more market share from its competitors. In 2011, Paramount movies in release peaked at 23, which also caused gross income, tickets and market share to rise. In 2011, Paramount held 19.31% market share.

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Recently, Paramount has experienced a decrease is almost every category, possibly due to the company’s ventures into other media outlets, including television projects. In order to help Paramount get back on the right track, movies in release need to increase. As of today, Paramount only has 10 movies in release for 2017. However, other factors do influence these numbers. Another factor to keep in mind is the fact that many people do not go to the movies anymore, instead they wait for the movie to come out to their homes through other avenues, including Netflix or on demand through their TV provider. This is due to the rising ticket prices at many movie theaters across the U.S. People always have a demand for entertainment, however, if Paramount wants to get back to being one of the top production companies, they will need to find new and innovative ways to get their pictures to the consumers.

Supply Data The most important numbers in Appendix A to reflect demand would be the films released and the market share. By evaluating the films released we can see the supply from Paramount Pictures specifically. When evaluating the market share we can consider what the gross revenue of the entire industry would have been. From those numbers we can create an estimate of what the average total number of films released per year was over the past decade.

Potential Buyers For domestic distribution, Paramount generally performs its own distribution services for theatrical release and its own sales and marketing services for home entertainment releases. In international markets, Paramount teams up with its affiliates to distribute motion pictures for theatrical release. From time to time, Paramount will enter into film financing arrangements under which third parties participate in the financing of the production costs of a film or slate of films in exchange for a partial copyright interest. As of January 1, 2013, Paramount and WHV

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entered into an agreement in which WHV has exclusive rights to physical DVD and Blu-ray disc distribution in North America of approximately 700 catalog titles from the Paramount film library in exchange for Paramount receiving guaranteed and performance based compensation.

According to the 2015 Theatrical Statistics Summary report released by MPAA (Motion Picture Association of America), the U.S./Canada recorded 1.32 billion sold tickets last year with an average of 3.8 tickets sold per person. 235.3 million people, or 69% of the population, went to the cinema at least once in 2015. Of the total moviegoer population, those that went to the theaters at least once a month accounted for 49% of all tickets sold and those that went to the theaters less than once a month accounted for 49% of all tickets sold.

Demographically, 12-17 year olds held a 16% share of tickets sold, 25-39 year olds held a 22% share, and people age 60 and older held a 14% share. While Caucasians made up a majority of the moviegoer population at 62%, Hispanics continued the trend of oversampling as frequent moviegoers in comparison to their proportion of the whole population. Wholly, per capita movie attendance in 2015 increased from the previous year for both genders with females reporting slightly higher movie attendance.

Overall, industry market potential may increase as the total number of potential buyers and their rate of purchase increases. Similarly, industry sales may increase as marketing efforts in the industry increases. For Paramount Pictures, company sales and company potential has seen a steady decline between 2015-2016 as a result of other firms offering superior products, improving their marketing efforts, and increasing their market share. Further, the availability of films through streaming or Netflix has directly affected the film industry and caused attendance in theaters to decline.

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Defining What to Measure Per the MPAA, in 2015 U.S./Canada box office sales was $11.1 billion- an 8% increase from the $10.4 billion in 2014. Additionally, 3D box office sales also rose, with an increase of 20% from 2014 to 2015. While the average ticket price increased 26 cents in 2015 from $8.17 to $8.43, going to the movies still proves to be one of the most affordable entertainment options and continues to draw more people than both major sporting events and theme parks combined.

Even with the increase in the average price of a movie ticket, 2015 saw a 2% increase from 2014 in terms of the number of moviegoers. A typical moviegoer in the U.S. and Canada bought 5.6 tickets in one year and more than two-thirds (235.3 million people) of the population over the age of 2 went to a movie theater at least once in 2015. This resulted in 1.32 billion movie tickets sold in the U.S./Canada in 2015.

Types of Market Measurements Here we are comparing total industry demand with Paramount Pictures’ demand based on gross per year. Appendix N shows the industry’s total gross per year with Paramount’s total gross per year. Since there are multiple competitors of Paramount within the motion picture industry, Paramount is not seen as being close to the total industry gross line. While Paramount took a dip in the early to mid 2010’s, its total gross has stayed relatively constant since then.

Projecting Firm and Industry Sales and Potential Appendix O shows a likely decline in demand for movie revenues. This is generally indicative of the declining trends in theater attendance likely caused by the increase in availability and convenience of streaming films and television series from home using services such as Netflix and Amazon Prime Instant Video.

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Buyer Behavior Individuals The model that best describes this purchase decision is the Economic Theory. Complaints against the movie industry right now include the fact that movie tickets, along with concessions, have risen dramatically over the past several years. This in part is due to the rise of options such as 3-D or IMAX showings of different types of movies. However, it is a justified speculation that movie ticket sales would jump if the price were lowered. Over 100,000 million people did not go to the movies last year, mainly because of price. Waiting to purchase the movie on demand for $5.99 or cheaper is a huge driving factor as to why ticket sales are not where they used to be.

People want the economical way to spend a rainy day and cannot justify spending $11 on a movie ticket. Nowadays, people seem to only be willing to spend the money if the movie evokes a deep emotional connection through previews, reviews and other advertising. Examples of this include movies such as the Dark Knight Series or the Harry Potter series.

Role of information is usually one of the decision making factors if one wants to see the movie or not. If there is adequate information about the movie- found through formal/informal reviews, previews, social media, interviews, etc.- then people will most likely feel like they are making an informed decision. However, if there is not enough information about a movie people may not be as willing to invest their money and time into seeing something they don’t know much about. Some attributes that consumers evaluate when it comes to movie going include acting, movie plot and special effects. A full list of evaluated attributes can be seen in Appendix C. Consumer attitudes when movie going is to go see a ‘good’ movie that entertains and their intentions are to get their money’s worth and time’s worth for seeing a movie. Movies are not a necessity, so when a person’s discretionary income decreases, purchases like entertainment

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are usually the first thing people stop spending money on. However, seeing movies is one of the cheaper entertainment options (compared to theme parks and some sporting events) which is advantageous for the movie industry. There are several social influences on consumers who purchase movie tickets. Influences such as friend/family opinion of the movie, reviews around the movie, pop culture, etc. affect if people want to go to the movies and which movie to see.

More influences on consumers can be seen in Appendix C as well. Big build up, especially of ‘cult’ movies, influence if people are going to see a movie in a theater. Positive reviews sway people to go see a movie more than negative ones. Additionally, media surrounding movie awards tend to influence people’s decision to see a movie or if it gets lots of news or lots of media coverage.

Households The initiator of the buying process could be a child who asks for parental permission to go see a movie that they have heard about. Also, it could be a parent or the head of household who suggests where the whole family goes to see a movie as a form of cheaper entertainment.

Once the idea of going to see a movie in theaters is initiated, opinions that influence the evaluation of alternative purchases could come from the person who is paying for the purchase and in charge of monetary spending. Influential opinions could also come from family as they all decide what the options are and choose what appeals to the majority. After evaluating all the alternatives for seeing a film in theaters, the final buying decision is made by the parent or head of household. If the child(ren) come to a decision, parents and heads of household also hold veto power if they believe the movie is inappropriate or money and time is better spent elsewhere.

Once a final decision has been made, the parent or head of household will proceed to implement

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the actual purchase transaction. The user(s) of the product could include the decision makers alone or with the rest of the family.

As with the individuals segment, the Economic Theory seems to be the best fit for the household segment. Although many theaters offer discounts for children’s tickets and tickets for the elderly, price sensitivity is still a major concern for the movie industry. Additionally, the idea of watching movies with the family does not usually resonate with an in-theater movie experience. Many families choose to stay at home on the couch, bundled up together watching movies with their children or other family members. Physically going to the movies has almost become a nostalgic event because of the price sensitivity consumers face. Spending time with the family economically has become a mindset that many movie industry professionals need to change, where price becomes less of an issue.

Role of information is usually one of the decision-making factors if one wants to see the movie or not. If there is adequate information about the movie- found through formal/informal reviews, previews, social media, interviews, etc.- then people will most likely feel like they are making an informed decision. However, if there is not enough information about a movie people may not be as willing to invest their money and time into seeing something they don’t know much about. If the household involves children, parents may spend more time looking online to make sure it is appropriate for their children and see if other parents have reviewed the movie and what they say about it.

The product attributes that consumer evaluate include acting, the storyline/plot, costume, direction, videography, actors in the film, special effects, length of film, temperature of theater, distractions, service at theater, cleanliness of theater, concession options, and if the film and theater environment is family friendly. A consumer’s attitude is to go see a ‘good’ movie that

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entertains and their intentions are to get their money’s worth and time’s worth for seeing a movie. For households, people typically intend to make sure that everyone will enjoy the movie.

Economic influences do play a role in the decision-making process. Movies are not a necessity, so when a person’s discretionary income goes down purchases on things like entertainment are usually the first thing people stop spending their money on. However, seeing movies are one of the cheaper entertainment options (compared to theme parks and some sporting events) which is advantageous for the movie industry. There are also definitely social influences on consumers who purchase movie tickets. Influences such as friend or family opinions of the movie, reviews around the movie, pop culture, etc. affect if people want to go to the movies and which movie to see. Big build up, especially of ‘cult’ movies, are likely to influence if people are going to see a movie in a theater. Positive reviews sway people to go see a movie more than negative ones. Additionally, media surrounding movie awards tend to influence people’s decision to see a movie or if it gets lots of news or a lot of media coverage.

Organizations Organizational purchase decisions are harder to judge. The Psychoanalytic Theory of purchasing decisions could be applied here. Distributors must ascertain from limited feedback how effective the movie will be in evoking the primitive drives of the Id and whether it will create pleasure in the consumer. Whether through sex appeal, humor or other factors, distributors can use the psychoanalytic theory to determine if the consumer will enjoy the movie. Cognitive theory and social psychological theory also offer a great deal of insight as to how organizations may choose to purchase the rights to show a film. In reference to social psychological theory, cultural, social, and reference group factors all hold weight in an organization’s decision to show

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a movie at their theater. Due to the attitudes and values that certain customers or even target markets may have, cognitive theory is also relevant.

Information is hard to gauge in the organizational realm of movie distribution. Since distributors typically have to sign before the movie is released, they have to do background research and see if this movie will be a hit with the current market. They basically have to take a risk and hope that the movie resonates with the people. They might be able to rely on previews, but since the movie has not been released to the general public, reviews from critics and even casual reviews are hard to come by and cannot solidify the decision any further. Venues that are choosing to show older movies that are already available to the general public decide on what movies to show based on what they think will attract customers. Pop culture and society have a strong influence on what movies are popular (based on actors, directors, series, etc that are ‘in’ at the moment) and information can be gathered from there.

Organizational consumers evaluate the movies they want to show in their theaters based on story line/plot, who directed the film and the number of people likely to see the movie. A full list of attributes that organizations find important can be found in Appendix E. Organizations have the intention to have quality movies playing in theaters at all times in order to attract as many people as possible. Theaters evaluate movies based on the aforementioned items and decide whether or not to make room for the movie to be screened and allot screening times and theaters to the films based on projected audience interest.

Movies are not a necessity, so when people’s discretionary income decreases, purchases on things like entertainment are usually the first thing people stop spending their money on.

However, seeing movies are one of the cheaper entertainment options (compared to theme parks and some sporting events) so that’s good for the movie industry. However, movie theaters suffer

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from economic influences because even though people might still go to the film, they might not spend as much on concessions- which is where lots of movie theaters make their money since ticket sales go primarily to the production company. There are definitely social influences on consumers who purchase movie tickets. Influences such as friend/family opinion of the movie, reviews around the movie, pop culture, etc. affect if people want to go to the movies and which movie to see.

Big build up, especially of ‘cult’ movies, influence if people are going to see a movie in a theater. Positive reviews sway people to go see a movie more than negative ones. Additionally, media surrounding movie awards tend to influence people’s decision to see a movie or if it gets lots of news or large media coverage. If a theater gets a head up that a movie is going to be very popular they may decide to allot more screens and movie time options to that movie.

Advertising, like trailers and social media presence, can also influence the theater's decision to choose movies to show.

Segmentation Individuals Individuals that purchase movie theater tickets to Paramount films are very diverse.

There are several segments that individuals can be separated into. For this analysis, individuals are segmented based on age. The first segment includes consumers that are under 18 years old.

The reason 18 was picked as the cutoff date is because R rated movies do not permit anyone under the age of 18 into the movie without adult supervision. There are several factors that lead to this segment choosing to see a movie in theaters. Problem recognition variables include bad weather or boredom, which leads to them thinking about what to do with their free time. Movies

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are typically on the cheaper end of the spectrum for those under the age of 18, as they cannot typically afford concert tickets and/or sporting event tickets without parental financial assistance.

For the next segment, individuals aged 18 to 64, other factors are taken into consideration; interest in certain historical events, formal critic reviews, and which actors or directors had influence on the film. With this segment of the population usually having jobs and being of legal drinking age, other options weigh into the decision. The ability to go to sporting events, concerts or to bars with friends are all viable alternatives to going to the movies.

However, movies still tend to be on the cheaper end of the spectrum for this segment. Finally, the segment aged 65 and older have several different considerations when evaluating whether or not they want to go see a movie. This segment typically depends on approval and recommendations from family members, interest in historical events or even time considerations. For individuals, the final two age segments have many similarities in the evaluation process of whether or not they should/want to really go see a Paramount movie in theaters.

Households For the purposes of this proposal, households were considered any family consisting of at least one parent and at least one child. These family households were further segmented based on total household income, as most moviegoers are cost sensitive and consider ticket costs a major determining factor in going to the theater. The first segment analyzed includes households with an average annual income of less than $60,000, placing them in the lower middle working class.

This segment typically consists of parents with high school education or some college and whom hold entry level positions at their jobs. This segment of moviegoers is generally the most cost sensitive when it comes to going to the movie theater and considers alternatives that are inexpensive or free such as going to the park. The next segment analyzed includes households

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with an average annual income of $100,000 or more, placing them in the upper middle class.

This segment consists of parents with college degrees and whom hold medium to high level positions at their jobs. While this segment of moviegoers considers the cost of going to see a movie in theaters, ticket and concession prices are not usually the deciding factor in going to the movie theater. Rather, they consider what each member in the household wants to do or what movie they want to see and the show times of that production. The final segment analyzed includes households with an average annual income of $150,000 or more, placing them in the upper class. This segment consists of parents with postgraduate degrees and whom hold high level positions at their jobs. This segment of moviegoers is generally not cost sensitive and considers other factors such as the quality of the movie and what features a particular theater offers (reclining seats, IMAX, etc.)

The characteristics of the children in each segment were similar and did not play a major role in defining the different households. Also, while children may influence the decision of a household to see a movie in theaters, parents of households are typically the final decision makers. Additionally, the middle class was divided into two segments because of the substantial difference in annual household income between the lower middle class and upper middle class.

Organizations Organizations that purchase films produced or distributed by Paramount Pictures vary a great deal. From movie theaters, to corporations buying group tickets as team building events, to movie clubs, many different kinds of organizations can be consumers of films. For segmenting this portion of our market we chose to evaluate movie theaters, corporations, and movie clubs.

Since movie theaters are consumers in a B2B nature, they vary from the other two segments the most. The most significant area of difference for movie theaters is that they are very limited in

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their alternative evaluation. They can choose which specific individual movies to buy and who they buy from, but outside of those alternatives they are quite restricted.

Corporations may utilize films as opportunities for company events for reasons such as building team chemistry or boosting staff morale. They may also attend a film because of its topic, which may be relevant or related to the industry in which they operate. They would likely utilize some sort of relationship with a single theater in which they have a regularly scheduled event (monthly biweekly, etc.). This would help them to develop a relationship so that they could negotiate for group discounts/rates and with physical venue space if they wanted to have a party room or something of that sort for the employees who attend. Movie clubs would be similar and would likely have some sort of schedule. Additionally they would likely seek group discounts and possibly even event/venue space. The nature of their consumption would be much different, however. Movie clubs would likely be attending out of social interest seeking a community of like-minded people with whom they could attend films. They would likely consider themes and the quality of a film and service in a theater more than a corporation whose primary motive would be to build team/company culture and chemistry.

Competitive Analysis Existing Competitors Paramount Pictures is considered part of the “Big Six� movie studios and competes directly with the other five studios- Warner Bros., 20th Century Fox, Columbia Pictures (now Sony Pictures Entertainment), Universal Pictures, and Walt Disney Studios. Unique to other industries, all six major studios, as well as other competing studios, are located in Californiaspecifically in or near Los Angeles or Hollywood. Of these six, Paramount is the longest

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operating major studio in Hollywood and has over a century of experience and currently holds 6.9% of the total market share for 2016, ranking 6th out of 147 studios in terms of market share.

While competitors like Warner Bros. might have 17.4% of the market share, 20th Century Fox with 13.6%, Universal with 12.5%, and Sony/Columbia with 9.1%, it’s important to recognize that these studios have released almost twice as many films as Paramount since January 1, 2016.

Had Paramount released more films, they may have found themselves with more market share.

Unlike other industries, movie tickets all sell for the same price and so studios can’t compete directly on the price of the ticket sold to consumers. Instead, studios have to make sure that the movies they produce bring in a larger audience than their competitors. In other words, they need to worry more about how many tickets they sell rather than at what price ticket sell since they cannot compete on that level. Having interesting plots, good actors, directors, etc. is what draws people into choosing what movie to see, so studios compete with each other in terms of those attributes. Additionally, studios need to make sure they promote the right content to the right audience to influence consumers not only to go to the movies initially, but to choose their studio’s movie over another studio’s movie once they’ve decided to go to the theater. Promotions and advertising are crucial elements for any studio because they are typically what helps a potential customer decide what movie to see out of all their options. Release dates is also a competing point for studios since each studio wants to position their movie’s release date when they think they will make the most money given what other films from competing studios will be released.

Hypothetical Market Structure The two market leaders are Warner Bros. and Walt Disney Studios. Between 1995-2016, Warner Bros. was the top-grossing distributor and has produced the most movies (667) of its

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competitors. Warner Bros. holds consistently high, if not the highest, market share (>15%) and expands the total market of consumers by regularly releasing/producing top-grossing films.

Similarly, Walt Disney Studios was the second top-grossing distributor between 1995-2016 and has produced 524 movies. The company holds consistently high market share (12-14%) year to year and regularly releases/produces top-grossing films.

The market challengers are Universal Pictures and Sony Pictures. Both companies have maintained steady market share (9-12%) and challenge the market leaders by periodically releasing/producing top-grossing films. The market followers are 20th Century Fox and Paramount Pictures. Both companies produce and release films for the same segments as the market leaders and challengers. Market share for these companies fluctuates but is generally low.

The one identified market nicher is The Weinstein Company because they target moviegoers of independent films. The Weinstein Company targets specific customer with their productions and hold a small percent of market share, as they generally only release their movies at film festivals.

Potential Competitors In identifying potential competitors it should come as no surprise that the newcomers to this competitive landscape are streaming sites such as Netflix, Amazon, and Hulu. To add even more to this list, Premium Networks such as HBO have begun to sell their services online, independent of cable providers. While many of these sites do not produce their own films yet, some of them have already begun releasing new films straight to their sites, bypassing theaters in general. This is a trend that could continue and even grow in popularity as subscriptions to streaming sites continues to climb, and theater attendance declines. In a shrinking world, we may also see foreign film production companies make a move into this market. While there are foreign films that are distributed to American theaters currently, they mostly go to independent

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and arthouse theaters. Expansion of these companies’ reach could increase competition for Paramount. Additionally, there are innumerable small production companies around the country.

Mergers and acquisitions between these companies could mean new competition as well.

Some potential competitors that seem less obvious could be innovators like Google and Facebook who are both constantly looking for new ways to add to their product lines. It is not out of the question for these companies to join the industry, especially as the industry continues to trend towards a more online heavy presence, where Facebook and Google already have significant presence. Likewise, we may see videogame producers join the market as well.

Graphic design and quality continues to improve, and since some of these franchises already have massive markets, it would be understandable to see them foray into producing movies based on the characters many consumers have become accustomed to over the years.

Predicting Competitor Behavior Many of the competitors that Paramount has are larger production studios. Some of these production studios include Universal Pictures, Walt Disney Studios and Warner Bros. In terms of revenue generation, the largest competitor, Universal Pictures generated $2.44 billion in 2015.

The next two biggest generated $2.28 billion (Walt Disney Studios) and $1.40 billion (Warner Bros.) in 2015. This indicates that these huge production companies have the ability to counter almost any move, either offensive or defensive in nature, that Paramount could throw at them. If Paramount wanted to cut prices to make cheaper deals to undermine the larger studios or raise prices based on projected movie performance, other competitors would have no problem being able to adjust to these moves. Financially, these companies generate more money simply because they have expanded their roles in the movie industry, while Paramount attempted to reduce its investment in movies and tried to branch out horizontally into other markets, such as television.

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The marketing and manufacturing costs for competitors in this market segment vary depending on the budget of the movie that they are producing. However, with higher budget films, competitors have been quick in the past to jump on blockbuster films and capitalize on its monetary success. Paramount needs to start getting back into the running for gaining rights to produce high quality, top grossing films. However, it is likely that in future, the top three competitors (Universal, Disney and Warner) will continue to hold high market share unless Paramount can get back into producing hit movies.

Business Fundamentals Business fundamentals include things that we inherited from Paramount that are not easily changed. Such aspects of the company include the location of our studios, which currently resides in Los Angeles, California. This is something that we would not want to change as L.A. is the center of entertainment industry and has a high concentration of talent for our producers and directors to pull from. Additionally, we currently employ 5,000 people. Paramount Pictures currently gains investment from private donors and uses inside monetary assets to invest back into the company. Finally, Paramount and our logo is a registered trademark. Additionally, we hold the rights to several huge franchise names, including such movies as The Godfather, Jeepers Creepers and Star Trek. Paramount also boasts contractual obligations to several bigname directors, including Martin Scorsese.

Goals and Objectives Paramount’s target market selection relied heavily on the product-market grid, shown in Appendix M. As mentioned in the Segmentation section, the segments chosen are individuals

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under 18, individuals 18-64, individuals 65 and older, lower middle class income households, upper middle class income households, upper class income households, movie theaters/streaming services, corporations, and movie clubs in the independent film sector. For individuals 65 and older as well as upper middle class income households, we determined that the most important attribute when deciding whether to go to the movie theater is convenience, especially for individuals 65 and older, this segment of moviegoers relies on friends and family for general care and transportation. Individuals 18-64 are driven more by social interest and typically choose to go to the movies because it’s an activity to do with others and because the movie they want to see is socially accepted. When evaluating individuals under 18, we determined that this segment of consumers along with lower middle class income households are extremely price sensitive.

Next, we determined that upper class income households focus on quality, as they have more discretionary income to spend and want the most bang for their buck. For movie theaters, the most important attribute is consumer demand because the success of a theater is dependent on how many consumers go to it. For corporations, we determined that the most important attribute is relevance because firms typically use movies for team bonding or company culture development. Lastly, movie clubs in the independent film sector focus on the award potential of a film. This can include awards for the movie as a whole or potential awards for actors and directors associated with the film.

The three existing products that Paramount should focus on are 2D/3D films in theaters, DVDs, and streaming. Additionally, we recommend that Paramount consider two new products; virtual reality and 4D films. While some products are applicable in the majority of segments, others are only applicable in one or two segments. For example, 2D/3D films are an applicable product for every segment, however, it is most applicable for individuals 18-64. On the other

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hand, DVDs are only an applicable product for lower middle class income households and upper middle class income households. Streaming is only applicable for third party streaming services, as Paramount does not own its own streaming capabilities. Finally, neither of the two new products are applicable for individuals 65 and older, lower middle class income households, and upper middle class income households while both are applicable for upper class income households. Based on the information, we determined that 2D/3D films in theaters for individuals 18-64 and 4D movies for movie theaters are the best targets to select.

Once the target market selection was complete, our team came up with main goals and completion dates for the segments to focus on in respect to their best matched product. For individuals 18-64, the goal is to generate more revenue that the previous year ($675 million in 2015). To achieve this goal by the end of 2017, Paramount needs to increase the ‘big box office movie’ by one movie each quarter, increase advertisements directed at the specific segment, and sign more big name directors to its movies. For movie theaters, the goal is for Paramount to partner with AMC and get 30% (115) AMC movies theaters nationwide to be 4D capable. In order to achieve this goal by the beginning of 2018, Paramount needs to make movies that would be best experienced in 4D, such as action movies and animated films. Also, Paramount needs to produce at least one movie per quarter.

Marketing Programs Market Program I: Individuals 19-65 for Films in Theaters Overview Since Paramount is a for-profit business, an obvious objective is for Paramount to continue to make revenue, which is why our objective for reaching individuals aged 19-64 with films in theaters is to increase Paramount’s revenue over the previous year. In order to do that,

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Paramount has to focus on making movies that people want to see. While that might seem very obvious, it’s important to note that social relevance is the most important attribute for why this target segment sees movies, which is why are stressing this basic point that Paramount should make movies that reflect what society finds interesting, important, or entertaining at the moment.

Although this is an already existing market that is seeing an increasing revenue year after year, there are some suggestions of how Paramount can continue to expand their revenue in the upcoming years.

Strategy According to The Numbers, a website that shows data on movies, movies under the ‘action’ genre have sold 5.5 billion tickets since 1995 and generated more than $32 billion.

Action movies appeal to almost all smaller demographics (race, gender, etc.) within the larger individuals aged 19-64 segment. That is why we think that Paramount the increase of one new movie each quarter should be of the action genre. Action movies tend to generate lots of buzz and people tend to prefer to see them in the theater setting to get the highest quality picture and sound experience that helps make action movies so exciting.

Not only does Paramount need to continue making more interesting and exciting movies, but they need to make sure that they ‘hype’ up and create anticipation surrounding the movie so that people will want to see the movie. A Forbes article written by Daniel Kehrer states that “marketing is often a make or break factor for action films”. By putting together a successful marketing plan Paramount will bring in enough audiences that will boost box office performance and lead to higher revenues for Paramount.

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Tactics Nielsen reports that action movies are the most popular movies to see in theaters, with 61% of Americans indicating it is their movie genre of choice when going to see a film at a cinema. This is a good indicator for Paramount about what types of movies would sell the most amount of tickets and boost revenue. Additionally, an infographic from magazine IndieWire indicated that people are attracted to different genres for different reasons (Opar, 2014). For example, plot is most important when it comes to dramas, actors for comedies, positive reviews for family movies, convenient show times for horror movies, and directors for action movies.

Focusing on targeting individuals aged 19-64 to see movies in theaters with action movies also works with our goal of attracting a new director to Paramount since the director is of importance to people when it comes to action films.

Although the price of the ticket cannot be changed and is at an industry standard, there are some other price considerations to consider. The average studio spends $30 million to market typical PG-13 action movie, which is only a small fraction of the price that action movies make at the box office (Kehrer, 2015). Paramount has to consider all of its costs and expenses when trying to increase revenue since they can’t simply change the price.

Paramount and its industry are unique in that every single product itself is unique and one of a kind, which in turn requires adequate promotion of each product. Although Paramount has to come up with new marketing promotions for each film, there are several tried and true forms of promotion that work best. According to IndieWire, “the official movie trailer influences people’s decision to see a movie 3x more than any other source” such as promotional cast interviews, movie posters, etc. This makes sense since the purpose of the movie trailer is to show off its greatest elements and make people excited about the upcoming film. That is why we think

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that Paramount should focus on making great movie trailers, since “marketing is often a make or break factor for action films” (Kehrer, 2015) and movie trailers have a large influence over consumers’ movie choice. Not only that, but since “a bad trailer won’t automatically hurt a film” there is not any huge inherent risk in focusing on movie trailers (Garrett, 2012).

When it comes to marketing film, it can be “notoriously difficult for movie marketers to connect specific marketing activities to actual ticket sales since numerous factors may have influenced a ticket buyer and which marketing touch points mattered most isn’t readily apparent” (Garrett, 2012). However, hyping up what people already say helps influence their decisionmovie trailers- is not a bad tactic for Paramount to follow since each movie will have a trailer regardless. In a study done by Alec Kennedy looking at if critical reviews on movies matter, he concluded that “it seems the best way to get the highest box office is to make the best movie that you can while also having an incredible and hooking marketing campaign”. By hiring an excellent director for an action film that many individuals aged 19-64 are interested and further enticing them with a fantastic promotional movie trailer we believe that Paramount can successfully target these individuals and increase Paramount’s revenue over the previous year.

Not only must Paramount come up with how to market each movie to its target audience, but it must strategically distribute their films as well. While the distribution process is straightforward - sending the film to theaters- Paramount should also consider when to distribute a film. Competing film production companies put out movies all the time, so Paramount needs to consider when to release a movie compared to other films. For example, Summit Entertainment’s Twilight series and Warner Bros. Harry Potter movies never came out the same weekend. Why? They were both targeted towards the same audience and each company would have lost some potential opening week customers to other production companies’ films.

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Luckily for Paramount, this strategy and its tactics are not very risky and will be easy to evaluate. Evaluation will come from looking at the numbers of tickets sold to these action movies and seeing if Paramount’s revenue seems to be on the incline. As previously mentioned, it’s difficult to measure what marketing tactics work when it comes to film, but since trailers have historically been a big influencer it’s fairly safe to assume that a great promotional trailer will be beneficial. If Paramount’s revenues do not increase, but either stay the same or decline, do to this strategy, it is a fairly easy fix as Paramount could abandon the idea of making a new film each quarter if that seems to be the problem

Market Program II: Selling 4D Films to Theaters Overview Paramount pictures is one of the film production industry’s leaders. As one of the “Big 6” production studios, Paramount must be a leader in driving innovation in the industry. One new product that could come to market in larger volumes in the next few years is 4D films. As a leader, we suggest that Paramount seek to utilize its resources to be one of the first companies to adopt such a practice on a larger scale. In the short term, we aim to distribute 4D films to a select number of AMC theaters across the country. Although we do not anticipate 4D films being distributed in an immense number of theaters initially, we are still optimistic about the prospect of earning a profit on these films, particularly considering the low initial fixed cost of a limited number of 4D capable theaters.

Strategy Our strategy for releasing 4D films would involve a partnership with AMC Theaters. This is a strategic choice that we made because of AMC’s brand recognition as well as their presence in markets across the entire nation. We feel that an exclusive partnership would help us to limit

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some of the risk associated with making a push toward expanding the number of 4D theaters across the country. This would ensure that we would have an exclusive number of theaters in which films we produce in 4D could be distributed and consumed. Another favorable element of expanding into this market with 4D films is the massive margins and the ease with which we could break even. We would produce one big budget 4D each quarter. Although these films have the greatest budget, they also have the largest returns. Additionally, big budget films tend to be action films which means that they typically lend themselves well to being produced in 4D. We feel that action films such as Star Trek and Transformers will make the best 4D films because of the extensive amount of content within them that makes for great sensory content. With the massive public interest that these films have, and their agreement with 4D we are confident that the costs incurred to produce the films in 4D will certainly be manageable to cover and will make such films the perfect fit to lead our charge into the 4D market. Another valuable element of our 4D films will be the opportunity they provide for establishing ourselves as a market leader. Although many other studios stand ahead of us in the traditional industry, Paramount could take a stronghold as the market leader in 4D, even ahead of the other Big 6 companies.

Similarly, the exclusive contract with AMC would create a competitive advantage for them as well as for Paramount. Overall, our strategy to incorporate 4D films into our product offering certainly offers ample opportunity to earn massive revenues while also helping Paramount to rise toward a position closer to the market leaders.

Tactics When considering the four P’s of marketing we place significantly less emphasis on Price than the other three P’s. As we have come to know, there is little price competition in the movie going industry. This means that we have a simple metric of increasing the price of a traditional

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movie ticket by 50% to find the price point for the ticket to our 4D films. Our partnership with AMC would call for 115 theaters to be retrofitted for 4D. Since these theaters would be in different locations around the country that 50% increase in ticket price would vary in nominal numbers based on the price of a typical ticket in any given city or market. With regards to our product, we would be producing one 4D capable film each quarter. We would choose films that we thought would have the most return on investment to be produced in 4D. These films would typically already be going to all 115 of the theaters that have been retrofitted for 4D. To promote our 4D films we would target the markets with 4D capable theaters.

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Table 1: Past Sales for Paramount Pictures Year

Movies in Release

Gross Income

Tickets Sold

Market Share

2006

19

$947,010,659

144,581,771

10.3%

2007

21

$1,502,551,245

218,394,065

15.38%

2008

17

$1,602,712,839

223,219,060

16.38%

2009

16

$1,460,075,602

194,676,748

13.72%

2010

18

$1,727,156,249

218,904,466

16.44%

2011

23

$1,966,886,567

248,031,092

19.31%

2012

22

$933,803,997

117,312,048

8.47%

2013

15

$981,549,932

120,731,842

9.01%

2014

17

$1,027,851,276

125,807,981

9.92%

2015

17

$697,086,594

82,691,166

6.17%

2016

12

$569,992,846

67,614,806

6.98%

Table 2: Sales Forecast for Paramount Pictures Year

Forecasted Sales

2017

$751,592,385

2018

$673,574,785

2019

$595,557,186

2020

$517,539,586

2021

$439,521,986

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Appendix B Regression Graphs

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Appendix C Buyer Behavior: Individuals Need/ Problem Recognition

Doesn’t want to spend lots of money on other forms of entertainment, promotional prescreenings, following a film series (sequels), favorite actor/director/producer, following a book adaptation, interested in real life events that inspired movie, convenient (variety of movies and show times), free ticket from movie rewards, concession food, first to see (midnight premier), in-theater quality of watching a movie (reclining seat, high-quality screen and sound projection)

Information Search

Formal/critic reviews, informal reviews (friends, family, etc.), social media, previews, advertising, promotional interviews (i.e. actor on Jimmy Kimmel), internet search

Evaluation

Looks at movies that are in theaters, looks at videos for download/streaming, thinks about time to dedicate to going to the theater, considers other entertainment options (sporting events, theme park, etc.), cost

Choice

Theater, Netflix, Hulu, OnDemand, other streaming sites

Post-purchase Recognition

Good Experience: good acting, good plot, comfortable seating, no distractions, high quality sound and picture, comfortable temperature, good snack options, clean theater Bad Experience: horrible acting, poor plot, boring movie, dirty theater, uncomfortable theater, too many distractions, poor customer service

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Appendix D Buyer Behavior: Households Need/Problem Recognition

Bored, needs something to do to kill time, weather, doesn’t want to spend lots of money on other forms of entertainment, promotional prescreenings, convenient (variety of movies and showtimes), free ticket from movie rewards, concession food, first to see (midnight premier), in-theater quality of watching a movie (reclining seat, high-quality screen and sound projection)

Information Search

Informal reviews (friends, family, etc.), previews, advertising, promotional interviews (i.e. actor on Jimmy Kimmel), child/parent websites (where parents can determine if movie is appropriate for everyone in household), internet search

Evaluation

Looks at movies that are in theaters, looks at videos for download/streaming, thinks about time to dedicate to going to the theater, considers other entertainment options (sporting events, theme park, etc.), cost

Choice

Theater, Netflix, Hulu, OnDemand, other streaming sites

Post-Purchase

Good Experience: good acting, good plot, comfortable seating, no distractions, high quality sound and picture, comfortable temperature, good snack options, clean theater, whole household enjoyed it Bad Experience: horrible acting, poor plot, boring movie, dirty theater, uncomfortable theater, too many distractions, poor customer service, not a good household activity because not everyone liked it

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Appendix E Buyer Behavior: Organizations Need/Problem Recognition

Theaters need to replace old movies with newer movies, keep up with competition, keep movie theaters relevant, keep consumers happy, publicize movies, show movies that will interest audiences and sway them to spend their money

Information Search

Look at popular upcoming movies, movies that will attract audiences, movies with good pre-release reviews, actors, directors, what movies production companies keep talking about and bringing up, movies that have a ‘cult’ following or is relevant in pop culture at the current moment

Evaluation

Audience reach & reception, genre of movie, contracts with production companies, history of successful movies, reputation of creatives, already existing fan base

Choice

Buy from distributor, rent from distributor, get rights

Post-Purchase Recognition

Good Experience: choose movie from distributor again, keep holding events, negotiate contract with distributor Bad Experience: choose other distributor, choose to not hold movie events, not renew contract

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Appendix F Segmentation Worksheet: Individuals Basis Variable: Age Individuals Under 18

Individuals 18 - 64

Individuals 65 and older

Problem Recognition

Have nothing to do with friends, need date option, bad weather prohibits doing something outside

Favorite movie/producer makes a new movie, real life event that inspired a movie, expiring movie rewards

Want to spend time with children and/or grandchildren, missing nostalgic moments at theater, real life event that inspired movie

Information Search

Word of mouth from other friends, social media, advertisements

Formal critic reviews, advertisements, promotional interviews

Promotional interviews, advertisements, informal reviews

Alternative Evaluation

Going over to a friends house, doing something more active, going to an event with parents

Doing something more active, watching movie at home , other event options

Family coming over to house, other event options, watching movie at home

Purchase Decision

Cost of movie, time considerations, if friends want to see the movie

Potential awards movie can win, actor/actress in movie, “buzz” about the movie

If family wants to see the movie, if movie is based off true event, time considerations

Post-Purchase Behavior

Good Experience: Buy ticket, concessions, want to go back, tell friends & family about experience Bad Experience: Don’t want to go to movies, tell people about bad experience

Good Experience: Buy ticket, concessions, want to go back, tell friends & family about experience Bad Experience: Don’t want to go to movies, tell people about bad experience

Good Experience: Buy ticket, concessions, want to go back, tell friends and family about experience Bad Experience: Don’t want to go to movies, tell people about bad experience

Descriptor Variables

Teens, children, social

Middle-aged, social/hobby, repeat customer

Elderly, one-time customer, family oriented

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Appendix G Segmentation Worksheet: Households (Families) Basis Variable: Annual Household Income Lower Middle Class ($60,000 or less)

Upper Middle Class ($100,000 or more)

Upper Class ($150,000 or more)

Problem Recognition

Movie rewards, family night discounts, family ticket package, early screening promotions

Following a book adaptation, real life inspired events, family night idea, movie rewards, bad weather prohibits other choices

Midnight premier, real life inspired events, following book adaptation, favorite actor/producer/etc.

Information Search

Word of mouth, advertisements

Word of mouth, advertisements, promotional interviews, social media

Formal critic reviews, promotional interviews

Alternative Evaluation

Watching television, outdoor activities (playing in the yard, going to the park)

Renting movie at home, streaming, going to sports event, going to theme park, going to concert

Going to sports event, going to theme park, going to concert, mini vacation

Purchase Decision

Cost of movie, movie times, Cost of movie, transportation to theater concession prices, movie times, variety of movies, preference of each household member

Movie times, variety of movies, preference of each household member, theater amenities (reclining seats, IMAX, etc.)

Post-Purchase Good Experience: Buy Behavior ticket, concessions, want to go back, tell friends about experience Bad Experience: Don’t want to go to movies, tell people about bad experience

Good Experience: Buy ticket, concessions, want to go back, tell friends about experience Bad Experience: Don’t want to go to movies, tell people about bad experience

Good Experience: Buy ticket, concessions, want to go back, tell friends about experience Bad Experience: Don’t want to go to movies, tell people about bad experience

Descriptor Variables

Parents with college degree, medium level job One or more children

Parents with postgraduate degree, high level job One or more children

Parents with low level education (some college or high school), part-time or entry level job One or more children

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Appendix H Segmentation Worksheet: Organizations Basis Variable: Business Type Movie Theaters

Corporations

Movie Clubs

Problem Recognition

Replace old inventory, keep up with competition, stay timely

Boost team New releases, award chemistry, film theme winners/nominees, relevant to business, notable creatives special promotion

Information Search

Contractual obligations, reviews, release dates

Group discount, reviews, film theme, staff interest

Alternative Evaluation

Choose a new distributor, Sporting events, leave the market office party, concert, museum

Purchase Decision

Agreements with distributor, ticket sales projections, cost

Group discount, price Awards, actors, of alternatives, creatives, groups effectiveness for team discounts

Post-Purchase Behavior

Good Experience: Have repeat customers, want to keep showing movies Bad Experience: Have low retention rate

Good Experience: Keep wanting to come back, hold more experiences at theater, tell family & friends about Bad Experience: Don’t want to return, complain, discourage others

Good Experience: Want to go back, tell friends about experience Bad Experience: Don’t want to go to theater, quit club, discourage others

Descriptor Variables

B2B buyers, for profit, large companies

Entertainment, ultimate consumers, group buyers

Group buyers, ultimate consumers, social/hobby

Availability, club member’s interest, theater preferences, group discounts Choice of theater, view at home, television

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Appendix I Pyramid

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Appendix J Hypothetical Market Structure Market Leaders

Warner Bros. & Walt Disney Studios

Market Challengers

Universal Pictures & Sony Pictures

Market Followers

20th Century Fox & Paramount Pictures

Market Nicher

The Weinstein Company

Appendix K Competitive Analysis Worksheet Buying Criteria

Paramount Pictures

Buena Vista/ Walt Disney

Warner Bros.

The Weinstein Company

Price

1

1

1

1

Availability

8

8

8

3

Brand Awareness 4

8

6

1

Films in Release

6

9

10

3

Budget

6

9

10

1

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Appendix L SWOT Analysis 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

STRENGTHS Brand recognition is high compared to the overall industry Big 6 production company Less expensive than other forms of entertainment (sports, plays, concerts, etc.)

Have a few of their own well known franchises (ex: The Godfather, Star Trek) Capability to attract famous actors, directors etc.

(Martin Scorsese under contract) Innovative storytelling abilities makes new stories people want to see Technology (special effects, animations, etc.)

Movies based on a true story, adaptive screenplays, etc. attract audiences Capital - compared to other studios in the market, Paramount has lots of money Access to highest quality resources (cameras, locations, etc.)

OPPORTUNITIES 1. Getting into their own streaming services or partnerships with current services 2. People are starting to become more cost sensitive due to the economic environment 3. Financial Leverage - acquisitions, talent contracts, etc.

4. Mergers & Acquisitions of independent production companies 5. International market expansion allows for Paramount to grow 6. Technological Advancement - resources for R&D 7. Loosening of regulations- 1st amendment rights are more protected 8. High access to existing fan bases 9. Remakes are safe bet for profit 10. Continuing new historical events upon which a film can be based

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

WEAKNESSES Industry has low brand recognition compared to other industries No ability to compete based on price Dependence on distribution Rivals have contracts with major franchises (WB Harry Potter, Disney - Marvel, etc.)

Variable costs are too high (costs for noteworthy actors) Long movies = time needed to be devoted Limited supply chain access means Paramount has limited control over quality of product being delivered to ultimate consumer Production time- sometimes ‘crazes’ around a story die before the film is available to public Industry lacks customer service Staff turnover results in inconsistent products

THREATS 1. Substitutes like Netflix, Hulu, and other streaming services may be a cheaper and therefore more attractive alternative 2. Declining theater-going industry trends in general is threat to industry 3. Other entertainment choices available 4. State of the economy- people stop spending their discretionary income when experiencing economic difficulties 5. Viewers can change their ‘taste’ in movies and not want to see the movies that Paramount is putting out 6. People may be looking for entertainment options that are shorter than seeing a movie 7. Government regulations (MPAA) can influence ratings and affect who can see the movie; foreign government prohibiting movie being shown in certain country (Ex: The Interview in North Korea) 8. Independent film growth 9. International competition 10. Market maturation - lack of ability to increase market share

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Appendix M

Appendix N

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Appendix O

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References Garrett, S. (2012, January 13). The Art of First Impressions: How to Cut A Movie Trailer.

Retreived from http://filmmakermagazine.com/37093-first-impressions/ Kehrer, D. (2015, July 1). 8 Insights On How Marketing Drives Movie Box Office Sales.

Retrieved from http://www.forbes.com/sites/forbesinsights/2015/07/01/8-insights-on-howmarketing-drives-movie-box-office-sales/#47641bcd8897 Kennedy, A. (n.d.). Predicting Box Office Success: Do Critical Reviews Really Matter?

Retrieved from https://www.stat.berkeley.edu/~aldous/157/Old_Projects/kennedy.pdf Nash Information Services, LLC. (2016). Domestic Movie Theatrical Market Summary 1995 to 2016.

Retrieved September, 2016, from http://www.the-numbers.com/market/ Nash Information Services, LLC. (2016). Box Office History for Paramount Pictures. Retrieved September, 2016, from http://www.the-numbers.com/market/distributor/Paramount-Pictures Nielsen. (2013, February 2). Newswire | U.S. Moviegoers Can’t Get Enough Action | Nielsen. Retrieved from http://www.nielsen.com/us/en/insights/news/2013/u-s-moviegoers-cant-get-enough-action.html Opar, J. (2014, November 17). Infographic: How People Decide What Movies to See. Retrieved from http://www.indiewire.com/2014/11/infographic-how-people-decide-what-movies-to-see-67790/ Theatrical Market Statistics (pp. 2-28, Rep.). (2015). Motion Picture Association of America.

The Numbers. (2016). Market Share for Each Genre 1995-2016. Retrieved from http://www.thenumbers.com/market/genres Bala, Shantanu (2016). The Future of 4D Home Cinema: A Haptic Effects Track- Somatic Labs.

Retrieved September 13 from https://blog.somaticlabs.io/the-future-of-4d-home-cinema-a-haptic-effectstrack/ Popcorn People: Profiles of the U.S. Moviegoer Audience. Newswire. (2013). Retrieved September 15, 2016 from http://www.nielsen.com/us/en/insights/news/2013/popcorn-people-profiles-of-the-u-smoviegoer-audience.html