Abstract
This chapter shows the set of critical characteristics of entertainment products that make them stand out from other types of products. Our overview of these characteristics provides the foundation for developing a marketing mix for entertainment products that takes their uniqueness into account. Their hedonic and cultural nature makes it difficult for consumers to judge the quality of entertainment products when deciding whether or not to buy them—and, because they are also artistic and creative offerings, sometimes difficult to truly judge even after consuming them. Entertainment products also have economic characteristics that affect managerial decisions; they are information goods (which means that most costs are incurred in creating the “first copy,” with each additional copy being low- or no-cost), and tend to have short life cycles. Entertainment products can acquire revenues not only from consumers, but also from advertisers and other parties, and “externalities” exist between these parties. This chapter provides a critical foundation for the rest of the book.
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Notes
- 1.
Our book points at quite a few of those failures. See for example the fallacy of the once-ambitious Cannon Group in the 1980s which we summarize in our chapter on entertainment product innovation.
- 2.
Follows’ analysis even tends to be conservative, as he does not consider potential profits made through what the industry refers to as “distribution fees.”
- 3.
In a formal perspective, in such a model revenues y are the result of a × bt, where a is the starting value (such as the revenues generated by a movie in its first week of release), b is the decay factor (or “multiplier”) which determines the slope of the curve, and t is the time period (with 1 being the first week of the movie’s release, 2 the second week, etc.).
- 4.
Let us add that utilitarian products can possess certain hedonic elements. All else equal, we will choose a better-tasting low-fat food while pursuing weight loss and you will choose a calendar app that has more attractive graphics while striving to organize your life. However, the essential motivation for consumption of the food or the app is to accomplish another goal—not the desire to experience the product itself.
- 5.
Specifically, we used the following statements for measuring utilitarian benefits: (1) “In general, [product] are very practical [praktisch] for me.”; (2) “In general, I think of [product] as very useful [zweckmäßig].”; (3) “In most cases, I perceive [product] as very functional [funktional].” For hedonic benefits, we used the following items: (1) “In most cases, using [product] gives me a lot of pleasure [Vergnügen].”; (2) “In general, I really enjoy [Freude haben] using [product].”; (3) “Usually, I have a lot of fun [Spaß] when using [product].”
- 6.
Another reason might be entertainment’s ability to support consumers’ need for managing their mood, a motive that contains a certain instrumental (i.e., utilitarian) element.
- 7.
The political role of entertainment is further demonstrated by a recent Chinese initiative which precedes movie screenings with video messages, in which movie stars such as Jackie Chan promote “socialist core values,” quoting from Mao and other national leaders (Qin 2017).
- 8.
In-between rating categories for movies are PG (“parental guidance” is suggested for children under 13), PG-13 (parents of children of 12 or younger are “strongly cautioned”), and R (under 17 year olds require adults to accompany them). For games, additional categories are E (“everyone”), E10 + (“everyone 10+”), T (“teen”), and M (“mature 17+”). We find it interesting that no such restrictions exists for books, in general. Obviously watching character Anastacia Steele having intercourse in 50 Shades of Grey—the movie—is considered to have more impact than reading its description in 50 Shades of Grey—the novel.
- 9.
This moral conflict is obvious in many comments on religious websites about the film. For example, Prins (1999), in his review for Christian Answers Network, judges the film as “extremely morally offensive” and writes: “Many Christians will no doubt be disturbed by the fact that Shakespeare and Viola are in a sexual relationship despite Shakespeare being married and Viola being engaged to another man.”
- 10.
Meta analysis is a research technique that does not use original data, but combines data from many studies on a topic, trying to determine a “true” average effect.
- 11.
See also the critique of Anderson et al.’s (2010) meta-analysis results by Hilgard et al. (2017), who, after re-analyzing the same studies, question some of the authors’ key findings. In a separate work, DeCamp (2017) provides rich insights into factors that determine people’s playing of violent games, which potentially also influence real-life violence—a potential source of an endogeneity bias that might underlie the empirically measured correlations between playing violent games and real-life violence. Using a variety of surveys conducted in public and public-charter schools in Delaware in 2015, his cross-sectional OLS regressions show that playing violent games differs with gender (males play way more), several family factors (e.g., students play more when family members are in the military, the father has lost his job, or a family member was recently in prison), and social variables (those who feel safe at school or their neighborhood and find support from teachers all play less violent games). They also found impacts for health issues (e.g., those who take medication for bipolar disorder and/or are around people who smoke play more) and psychological states and attitudes (those who feel worried play more, as do those who have been bullied in their neighborhood).
- 12.
Specifically, the judges stated that “[Anderson’s studies] do not prove that violent video games cause minors to act aggressively (which would at least be a beginning). Instead, ‘[n]early all of the research is based on correlation, not evidence of causation, and most of the studies suffer from significant, admitted flaws in methodology.’ (Video Software Dealers Assn. 556 F. 3d, at 964). They show at best some correlation between exposure to violent entertainment and minuscule real-world effects, such as children’s feeling more aggressive or making louder noises in the few minutes after playing a violent game than after playing a nonviolent game. [But even] those effects are both small and indistinguishable from effects produced by other media [such as Bugs Bunny TV shows]” (Supreme Court 2011). For those of our readers who want to dive deeper into potential antisocial, but also prosocial effects of entertainment, and video games in particular, we recommend the book edited by Kowert and Quandt (2016).
- 13.
Let us note that there are specific constellations in which a particular quasi-search attribute functions as a “true” search quality for some consumers. In the case of Mr. Depp, a particularly dedicated fan may find him so appealing that he or she goes to a movie simply to look at Mr. Depp, not for his contribution to the film—and thus indeed knows what he or she will get in advance.
- 14.
Mr. Weingarten’s (2007) coverage of the experiment in the Washington Post is as fascinating as the experiment itself; although our book refers to a large number of awarded pieces of entertainment, it is probably the only item in our reference list that itself was honored with a Pulitzer Prize. You might also watch a time-lapse version of Mr. Bell’s performance at https://goo.gl/MmwRBi.
- 15.
As the squared correlation coefficient equals the shared variance of the two ratings, professional critics’ evaluations explain only 6% of the ordinary consumers’ preferences, and vice versa in Holbrook’s study.
- 16.
The genres were: action, comedy, drama, horror, independent, international, romance, science fiction/fantasy, sports, and thriller.
- 17.
Holt (1998, p. 23) also suggests a pragmatic measure of cultural capital, which essentially weights a consumer’s and his/her parents’ education and occupation.
- 18.
The taste-forming role of a nation’s culture also affects preferences for elements and forms of entertainment, such as genre.
- 19.
Forde (2013) has compiled a list of some of these cases where musicians such as The Mamas & Papas, Van Morrison, and Marvin Gaye produced songs and albums not because of an intrinsic motivation, but solely to avoid lawsuits. Probably the most drastic case of such “artistic disobedience” might be the 1970 song Schoolboy Blues by the Rolling Stones, whose quite explicit references to certain sexual “techniques” were so radical that they prevented the managers at Decca from releasing it (in line with the creators’ intentions).
- 20.
We will revisit several of the scenes Scrawler has included in his list in our consumer behavior chapter when discussing the need for verisimilitude for great storytelling.
- 21.
Some argue that the development of automated recommender systems and other digital innovations will cause a shift toward the “long tail,” which would go hand in hand with a reduction of this perishability property, extending the length of entertainment’s life cycle. We discuss this potential effect later in the book.
- 22.
Although beyond the scope of this book, it is an interesting question how such avoidance strategies impact the value of consumers’ product usage for advertisers. Bronnenberg et al. (2010) study how the ownership of a TiVo digital video recorder (DVR) changed the shopping behaviors of 819 Texas households, comparing purchases in several product categories for 13 months prior and 26 months after the adoption of the DVR with a large control sample. Analyzing the differences in spending behavior show no significant effects—in other words, obtaining a TiVo DVR and the associated ad skipping does not impact purchase behaviors, at least not in Bronnenberg et al.’s setting.
- 23.
Please note that one can also argue that (positive) externalities exist between different groups of customers in the printer example above: consumers might consider a printer as more powerful if it is adopted by business customers. However, usually the link between the two customer groups is weak and is not related to separate benefits, as is the case with advertising—that is why we are hesitant to use the term “two-sided market” for such constellations.
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Hennig-Thurau, T., Houston, M.B. (2019). Why Entertainment Products are Unique: Key Characteristics. In: Entertainment Science. Springer, Cham. https://doi.org/10.1007/978-3-319-89292-4_3
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