Integrated Business Project

Introduction
■ Today day we are living a historic moment in the media and entertainment industry. The
passage to digital technology gains speed, and businesses continue to expand in the
global arena. At the same time, the industry faces great challenges. The way to be
successful changed, forcing the companies to adapt new strategies, skills and
operational models, the entertainment industry has not been different, as we know the
entertainment industry and the media is living radical transformations.

■ The entertainment industry has some attributes similar to other industries, especially
when we talk about brands. Activities such as licensing, sponsorship, concerts and
sporting events are handled in different markets, however, the entertainment industry
has very distinctive strategies that affect the use of brands in different scenarios.

■ This industry moves billions of dollars worldwide and unconsciously because people do
not realize the large number of stimuli that receive.
 Literature Review
 The entertainment industry is vast. It encompasses 18 unique
sectors, which are as follows: Staged Story and Variety; music;
bars, pubs and clubs; cinema and film; broadcast media; audio-
visual media; the internet; gaming; printed media; commercial
gambling; spectator sports; thrillertainment; edutainment;
sellertainment; culturtainment; spiritual entertainment; health
entertainment and adult entertainment.

 Within each sector of the entertainment industry, there are a plethora of

sub-sectors providing thousands of types of entertainment products,
running into millions of produced tangible and intangible products, worth
around I trillion USS annually (Epstein, 2007).
 The entertainment industry is growing exponentially; the world in which we live is becoming increasingly
industrialized, and recreation-seekers overall have greater amounts of both time and money.

 Entertainment is not only seen as a scape for people of their daily lives, research has proved the increase of
competitiveness and the homogenization of products are forcing brands to invest in new forms of
communication that involve their audience emotionally.

 Among which advertainment or branded content stands out, it can be said that these concepts it is an
integration of advertising and entertainment, and which aims to represent the intangible values of the
brand. The hybrid product can acquire multiple forms, although the most used are the audiovisual fictions
where all the advertising sector advertisers, agencies and producers that have more experience.
(Martinez,2003)
 At this historical moment, however, and
despite the excitement and noise generated
by the potential for market disruption, six
conglomerates remain at the heart of
production organization and creative work in
US media entertainment. By driving the
strategies of producers and directors who
need capital to finance their film and
television projects and access to ‘eyeballs’,
the conglomerates directly and indirectly
influence the organization of work and
workforce strategies.

 The major US-based media conglomerates

include (in 2007) Disney, General Electric,
National Amusements, News Corporation,
Sony and Time Warner. (Within General
Electric and Sony, the media entertainment
divisions are only small contributors to
corporate profits.)
 An important concept that is being seen more frequently

as the media companies get larger is synergy. ‘’Synergy

is all about marketing and the halo effect, which can
enable one form of a product to morph into another’’, (Al
Lieberman, 2002). We see examples of synergy often in
the entertainment industry.

 The original entertainment product, for example, a film or

a television show, is a huge success and is morphed into
merchandise, books, theatrical performances, home
videos, etc. Synergy means working together. Big global
industries need to work together with smaller industries
so they can get the most sales, meaning they will earn
more money as a company.
 Take the example of the movie Beauty and the Beast
owned by the Walt Disney Company. The animated movie
was a huge box office success. The Beauty and the Beast
brand was turned into stuffed animals, princess costumes,
books, straight-to-DVD sequels, and a successful theatrical
production. The Walt Disney Company has become a
master of synergy.

 The importance of concentrating on forming strong synergy

amongst areas of operation in business is directly related
to maximizing productivity and efficiency. The better
synergy two or more elements have together, the more
productive and efficient those operations will run. The
more efficient and productive an operation is run; the
more profits will result. (Andi, 2009).
 Basically, if you do not
have synergy between
companies in a global
industry then that
means they will not be
as successful as they
could be, meaning
they will not get as
much money as they
want, and it could all
collapse and go bust
or they may just end
up splitting into many
different industries.
 EVIDENCE
Examples of entertainment companies who had success in their strategies:

 Marvel Studios: Success throughout 10 years

This company is widely focused on making film

productions based on the superhero focus of the
company's comics. Over the years, this company has used
sales strategies in different aspects which can promote
their products to people interested in seeing them.

The target audience: Marvel Studios started with their

productions about 10 years ago, which has not been easy
to maintain since there are variables that should be
considered over the years. One of these variables is the
target audience.
 Promotion: This is the most important aspect
for company strategies. Marvel takes
advantage of people's expectations to be able
to handle the promotion in their favor. One of
the ways in which it is used this, is in the
massive events and with value towards the
company. A very good example of course is the
San Diego Comic Con, which is regularly
celebrated in the month of July every year. An
event that has a target audience of lovers of
comics, movies, series and entertainment in
general. With an average attendance each year Raise the brand
of 200,000 spectators.
 SPOTIFY: The Success Strategy Behind the Music App

Spotify is a company based in Stockholm that offers music

streaming services as well as the ability to download music. It
started operating on October 7, 2008 in Sweden and in other
countries as of 2009. It is a Freemium model since it has a
part of free service (Spotify Open) and another payment
(Unlimited and Premium).
It currently has more than 24 million customers in 56
countries and a musical repertoire of more than 30 million
songs. The competitive advantage of Spotify has been its
influence on social networks, the creation of playlists and,
especially, the possibility of following people with similar
musical tastes.
  Any business strategy must be supported in the
dynamic analysis of the competitive forces that
affect or favor a company. On the other hand, every
business strategy must recognize the role and
power that suppliers have in the industry itself.
Consequently, this shows us that every process of
design and implementation of the strategy requires
a precise knowledge of our competitors, the
conditions of the economic and political

 One of the main lessons that Spotify gives us is that environment and, above all, the industry in which

strategic success is temporary and that there is no the company operates.

greater fallacy than believing that competitive

advantages are sustainable. However, little by little,
Spotify has taken advantage of its competitors in
streaming music.
 RED BULL’s branded entertainment: Brand Selling Strategy

 Red Bull follows an ownership strategy rather

 Another important element is the appeal of
than a pure sponsorship with football/soccer
sport-related branded entertainment to sport
clubs such as FC Red Bull Salzburg, RB Leipzig
fans. Red Bull encourages prosumers to create
and New York Red Bulls, as well as the Infinity
and share their own content together with Red
Red Bull Racing team. In addition, Red Bull has
Bull’s branded content, in which sponsored
created or taken over their own sport events
athletes are highlighted.
and media channels, creative producers, and
agencies that support their brand strategy. Red
Bull has applied a consequent “approach to
integrating its brand message into
professionally produced content”.
 The Red Bull Stratos also demonstrated how User
Generated Content can emerge from branded
content. By the end of 2015 YouTube returned more
than 31,000 clips when “stratos parody” was entered
in the search box and some videos reached 46,000
views. Social Networks Sites integrate professionally
produced branded content as well as content from
athlete prosumers. In the viral stage focus is on Red
Bull’s target groups, which are often highly identified
fans and especially young prosumers.
 The Red Bull production process begins with
attractive content that involves popular and engaging
action/extreme sports (events, stunts, etc.), with the
advantage of numerous sponsored athletes who are
authentic communicators. Distribution incorporates a
range of networking partners providing additional
sport content from selected media companies, sport
media houses and other companies. Cross-platform
and multi-channel distribution improves economies of
scale and scope and addresses fragmented target
groups.
 CONCLUSION
 The entertainment media have diversified greatly, since, thanks to the technology, a greater
number of audiences, users, customers, viewers, listeners, etc. can be reached. There are many
brands that have taken advantage of the good use of advertising in different places to reach new
regions and thus reach more public, as in the case of WWE. Whose strategy and popularity has
spread throughout the world. For example, at present not only there are American fighters, also
there are Mexicans and from other countries, since their popularity has increased, and the brand
now appears in movies and is a good franchise.

 A new generation of ideas requires a new generation of content that sells ideas, that motivates,
that expresses, that is at the forefront. These companies are an example of what it is to sell the
brand successfully, which is to have an identity as a company.