Film Markets Favor TV, But Costs Continue To Rise

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Movie media marketing costs keep growing, and will continue with television as the main driver, even as digital alternatives fragment consumers' interests.

"Marketing costs for movies will continue to rise," says Rob Friedman, co-chairman/CEO of Summit Entertainment, the movie studio behind the powerful "Twilight" series, which has pulled in $1.6 billion in worldwide box office revenues. Friedman spoke at Variety's Film Marketing Summit.

Rising television costs will play a big part of this, says Friedman, who also held senior marketing positions at Paramount Pictures and Warner Bros.

While the prices for TV advertising were weaker in 2009, it roared back stronger this year, with the media costs for commercials rising 9% to 11%. That said, Friedman has noticed that among major studio releases, "the competitive environment has gotten a little less" -- and that reality has helped to soften pricing a bit.

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But overall, "TV again is the primary [medium] people go to -- it's natural," says Friedman. "I do think the consumer is sometimes confused about where they see things," he added, although he says where isn't important. "We don't pay as much as attention [to that]."

Modern-day film marketing still starts with the trailer, says Friedman, where 25% to 30% of a film's awareness is gained from trailer play in the movie theaters or wherever. "It's the longest form you'll use in sight and sound," he says.

Where studios are still focused on the initial weekend opening of a movie, new digital media has helped push companies to focus more on Friday night." We know on Friday night whether we have succeeded or not," says Friedman.

The Motion Picture Association of America no longer releases the average marketing costs for a movie. But Friedman believes that studios probably still spend anywhere from $25 million to $50 million for major wide-release. Most of this expenditure remains with television advertising, according to marketing executives.

But it may not always stay that way.

"With the explosion of media opportunities, there are shifting sands," says Friedman. "Over time, you'll see money moving to different media."

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