The Hobbit: Treasure Hunt: Synergy

This is an example of where The Hobbit marketing team have used synergy to spread the word of the films. Starting at social networking sites, online stores, email/news sites and film websites, the word is spread thoroughly throughout the internet. Air New Zealand is the main partnership within this example, but multiple platforms for marketing opportunities are presented, reaching a wider audience globally.

British Films: Exportation and Success (The Facts)

• The UK is the second largest exporter of films, after America
• In 2012, British films accounted for 15% of the global box office
• The vast majority of internationally distributed British films are financed by Hollywood
• The whole of Asia only accounts for 6% of UK film exports
• New Zealanders watch almost as many British films as the British
• The British films which travel best are star comedies and historical biopics
• UK films underperfom in Japan, Mexico, South Korea and Brazil

Production investments in 2013

Production companies involved

1. New Line Cinema/ Metro-Goldwyn-Mayer/ WingNut Films
2. A Band Apart/ Columbia Pictures/ The WeinStein Company
3. One Race Film/ Etalon Film/ Universal Studio/ Relativity Media/ Original Film
4. Paramount Pictures/ DMG Entertainment/ Marvel Studios
5. Mirage Enterprises/ The WeinStein Company
6. Bad Robot Productions/ Skydance Productions
7. Lin Pictures/ Langley Park Productions/ Village Roadshow Pictures
8. Summit Entertainment/ K/O Paper Products/ SOIXAN7E QUIN5E/ See Me Louisiana
9. Legendary Pictures
10. UTV Motion Pictures/ Plan B Entertainment/ Skydance Productions

This list shows all of the production companies invested in the films that were most downloaded online in 2013. The list shows that, although there is a wide range of investing companies, a couple mentioned do appear multiple times; Skydance Productions, The WeinStein Company. By appearing multiple times, it highlights the companies that are successfully investing in the production of international and global films.

The Effect of 48 FPS

The biggest technological innovation at work in The Hobbit is the decision to shoot the film at 48 frames per second. Since the film industry began, films have been shot and projected at 24 frames for a variety of reasons which all come down to two basics – firstly, it is the lowest speed that allows for a reasonably smooth illusion of movement and, secondly, it doesn't waste too much expensive celluloid.
Peter Jackson argues his point of doubling this fps rate, saying that it equates a smoother, more naturalistic motion, and when combined with the use of 3D cameras, a 'window to another reality' is opened to the audience.

Uses of different technology in The Hobbit

49 interesting facts about the film industry.

1. Women only made up 13% of screenwriters and 8% of directors.  Both figures are lower than 2011 (19% and 15% respectively).

2. The BFI awarded £1m to short films in 2012.

3. 200 films passed the Cultural Test in 2012 to become officially ‘British’. Of these, 13 were official co-productions.

4. On average, films passing the Cultural Test were able to class 71% of their total budget as ‘Production Costs’ for the Tax Credit (which provides 20% of the eligible Production costs, on films under £20m).  The figure for official Co-productions is 60% of the budget.

5. The largest government body to provide funds to the UK film industry is the taxman.  HMRC provided £214m towards UK films, which is 55% of the total amount invested in the UK film industry in 2012.  The BFI provided £87m (via Lottery funding) and two public broadcasters were the next biggest investors (Film4 £15m and BBC Films £12m).

6. ‘Alan Partridge: Alpha Papa‘ received £500,000 in BFI Lottery funding.

7. Only 7% of UK films made between 2003-10 were profitable (The BFI estimate profitability by “using an international box office to budget ratio of 2 or more”).

8. In 2012, the largest production companies were (in order and with their number of films and estimated combined budgets in brackets):

1. Working Title Films (12 films, £250m total budget)
2. Press On Features (9 films, £12m total budget)
3. Black and Blue Films (9 films, £5m total budget)
4. Vertigo Films (7 films, £18m total budget)
5. Passion Pictures (7 films, £8m total budget)

9. There were 4,600 students in film-related higher education courses, an increase of 209% on 2011.

10. Half of the top 20 global box office successes of the last 12 years are based on novels by UK writers.  Which is great news for UK writers, until you consider that all but one of those authors are dead — five were written by JK Rowling, three by JRR Tolkien and one each by Ian Fleming and Lewis Carroll.

11. 80% of all the writers and directors the BFI has tracked in the last ten years have only ever been involved with one independent feature film.  This is pretty depressing, although there is some minor good news in the way they collect this data.  They only look at UK independent films, so someone like Gareth Edwards (first feature was indie ‘Monsters‘ and is now making ‘Godzilla‘) would fall into that 80%.

12. London has 55% of the film industry as a whole but only 30% of the distribution companies.

13. In 2012 there were 78 millions rentals of feature films on physical discs (down 9% on 2011). Interestingly 54% were by post, meaning DVD rental shops are not dead yet. Average rental costs £2.94

14. Video on Demand (VoD) has doubled in size since 2011, now making up a larger share than physical rentals (£229m for rental and £243m for VoD).

15. 25% of Internet users over 12 years old have downloaded or streamed a feature film online.

16. The film industry provided £3.8bn to UK GDP in 2012.

17. Only 2% of films screened on Sky Movies were of UK origin.

18. 647 films were released in 2012, making an average of 12 a week.

19. Foreign language films made up 35% of films by number but only 2% of box office.

20. Audience is getting older – the 45+ age bracket represented 36% of total audience over 15 years old.

21. Independent films made up 9% of total box office.

22. 3D is becoming less popular. In 2012 43 3D films were released compared with 47 in 2011. The takings for 3D films fell from 20% of the box office in 2011 to 18% in 2012. The BFI says: “Initially audiences were attracted by the novelty of the new technology, but have become more selective about the films they watch in 3D, and choose 3D where the effect makes a perceived contribution to the experience”.

23. Sequels and franchises accounted for 13 out of the top 20 films (by both number of releases and total box office).

24. ‘Titanic’ regained its top-spot as the highest grossing film in the UK since 1975 (adjusted for inflation), thanks to its 2012 3D re-release. ‘Skyfall’ is at number two and ‘Avatar’ at number three.

25. Action accounted for only 7% of releases but earned 28% of the box office. Conversely, drama accounted for 24% of releases but shared only 2% of total box office.

26. The BFI claims that 647 films were released in UK cinemas but, as with every year in the last decade, their numbers do not match the BBFC official figures. The BBFC rated 718 films in 2012 whereas the BFI only have 632 films with certificates (15 were screening without a rating) in their data, leave 86 films… missing.  These films might have been rated and not released but this seems high; It costs around £1,000 to get a BBFC rating for a feature film and you can’t carry that cinema rating on the DVD (it must be re-rated).  I wrote about this in my previous blog post ‘Raters Gonna Rate’ and since then the BBFC replied, saying they can’t account for the discrepancy and no word yet from the BFI.

27. UK independent films made up 8% of the New Zealand box office, thanks mostly to ‘The Best Exotic Marigold Hotel‘.

28. UK films accounted for 15% of global box office. UK independent films accounted for under 2% of global box office.

29. UK films represented 9% of releases in North America (USA and Canada) and 16% of North American box office.  That sounds pretty good, but remember that this includes the likes of ‘Skyfall’, rather than just independent films.

30. The largest single BFI investment was £1.6m in ‘The Invisible Woman‘.

31. Only 22% of films with budgets under £500,000 made between 2003-10 were released theatrically within two years. For budgets over £500,000 it rises to 57%.

32. Estimated total spent by UK distributors on marketing was £189m. Of that, £89m was on TV adverts, £67 on outdoor (posters, buses, tube, etc), £22m press, £7m on radio and £4m online.

33. 90% of UK cinemas screens have digital projection

34. 60% of releases are shown at fewer than 50 sites with 4% being shown at over 500 sites.

35. On average films budgeted under £500,000 cost £40,000 to distribute theatrically, films budgeted under £2m cost £200,000 and films with budgets over £10m cost an average of £2,400,000 to bring to the cinema.

36. For the first time since 1984 the net increase in traditional screens was larger than the net increase in multiplex screens.

37. There were 3.9 billion viewings of feature films on TV in the UK in 2012. This is 22 times the number of cinema admissions.

38. The UK has the third largest filmed entertainment market in the world, after America and Japan.

39. DVD and Blu-Ray sales are only marginally larger income generators than cinemas (£1.2bn for physical retail compared with £1bn for theatrical admissions). The total filmed entertainment market is worth £4bn.

40. ‘Salmon Fishing in the Yemen‘ had a larger-than-average share of over 45 year olds. The largest audience group for ‘The Pirates In An Adventure with Scientists‘ was the 25-44 age group.

41. In 2012, £929m was spent on UK film productions, £345m less than the £1.3bn spent in 2011.  In part, that is because the number of films made has dropped from 331 in 2011 to 249 in 2012.

42. Between 2008-10 there was a 49% rise in films made on a budget of under £500,000.  In 2012, there were 249 films made on under £500,000, which is significantly less that the peek of 358 in 2010.  The BFI does acknowledge that they have a hard time tracking micro-budget films, so these numbers are likely to underestimate the total, but the trend can reasonably be assumed to be accurate.

43. Just nine big-budget films accounted for 65% of the total UK production spend, including ’All You Need Is Kill‘, ‘Fast & Furious 6‘, ‘Jack Ryan‘, ‘Maleficent‘ and ‘Rush‘.

44. The median budget of domestic UK films was £200,000 (same as 2011). The inward investment feature median budget fell from an “unusually high” £18.7m in 2011 to £9.7m in 2012.  The median budget for a co-production was £1.8m.

45. 70% of total UK film investment went into production, and production makes up 61% of Lotteryfunding awards.

46. In 2012, there were 5,190 film production companies in the UK.  This figure may be high partly due to special purpose vehicles (SPVs) set up for a single film and kept running for tax purposes.

47. In addition there were 1,470 video production companies, 2,205 in post-production, 475 in film/video distribution and 205 in film exhibition.

48. Of the 392 film companies that made a feature in 2012 only 10 made three or more, 19 made two and the rest only made one.

49. 47% of people working in film and video industry are freelance.

Largest production companies, 2012

8. In 2012, the largest production companies were (in order and with their number of films and estimated combined budgets in brackets):

1. Working Title Films (12 films, £250m total budget)
2. Press On Features (9 films, £12m total budget)
3. Black and Blue Films (9 films, £5m total budget)
4. Vertigo Films (7 films, £18m total budget)
5. Passion Pictures (7 films, £8m total budget)

Film industry facts and figures

This poster contains multiple facts and figures based on the film industry in America. The high percentages show us that the industry is dominant over that continent. One fact concerning the release of 3D films over a fixed number of years shows us that since as early as 2006, the release and demand of these types of films has grown by a huge amount- 2010 releasing 3x as many as 2006.

Captain America: Winter Soldier/Chevrolet media convergence

In the coming weeks, a new Captain America film is due to be released. At the same time, Chevrolet are due to release products. The two companies have come together to create an ultimate ad campaign. By doing so, the two companies have managed to reach outside of their usual audience- the film's audience draws in fans of the car who may not be aware of it's release, meaning they'll have a possibility of increase in box office sales. Vice Versa for the car company.

Film industry facts.

Here is a list of the top grossing films in Britain since 1989. All 21 of the entries to this list either international co-productions, or productions from other countries- primarily America. This shows that the british film industry is still as heavily dominated by countries such as the USA- something that has been evident since the second world war. 

Film industry facts.

2D Ticket Prices:

  3D Ticket Prices:

Despite the growing demand for 3D films, and despite the cost that this would take from the filming budget there is only a £2 difference between tickets for the two types of screenings for an adult, and even less than that for a child under the age of 12.

Film industry facts

This table of statistics shows that in 2013, the highest grossing films were those that were available in 3D. This show that there is a growing demand in the film industry for 3D. The top 10 films i the list (minus 'Monsters University) are also fantasy/adventure films, showing that there is also a spike in interest and demand for this genre. 

The top 10 places also seem to be dominated by 4 major media conglomerates or companies. These are all American based conglomerates. This fact shows that America is still as dominant over the film industry as ever, with countries, such as Britain, not ranking up near the top. 

How important is technological convergence for institutions and audiences within a media area which you have studied?

The merging of different technologies within the film industry is quickly becoming a large factor for film companies and the consumer of the films. The Hobbit is a strong example of this.One main use of technological convergence in this film is it's use of 3D cameras- the RedEpic to be precise. The use of 3D was incorporated into this blockbuster movie to go along with the ever popular demand among cinema goers and film lovers fir 3D films, especially in the genre of action/fantasy that this project conforms to. In a survey recently conducted, it was shown that 71% of the people questioned said that they preferred 3D over 2D films. This statistics indicates to the institutions involved in making this film as successful as possible that by using this type of technological convergence that they are going to be appealing to a wider audience of cinema goers. The fact that The Hobbit was a blockbuster funded by a conglomerate such as Warner Bros meant that they had a large production budget of $250,000,000 meant that it was not a problem to delve into the uses of different technology, and experimenting with the merging of the different technologies. 

Film industry facts.

1. What percentage of the british population prefer 3D films to 2D films?
Out of a total 1,011 people surveyed, only 373 said they'd rather see 3D over 2D if the 48% who had never chosen to see a 3D movie were included.
Jim Chabin a report the society commissioned saying "most" US cinemagoers liked 3D compared to 2D. Some 71% of people surveyed who had seen a 3D movie preferred the experience.

Working title

3. Universal studios is owned by NBCUniversal- a major media company that produces not only many of the films that are popular in the industry, but also television (network, cable and local) networks, several television production companies, and branded theme parks.
NBCUniversal is owned by Comcast. Comcast is one of the biggest mass media and comunications companies in the world. It is the largest cable television and home internet broadband company in the world, also covering home security. It also produces major television and film projects, owns multiple television cable networks, national channels, and the major film institution Universal Pictures, as well as the Universal theme park.It is the parent company of NBCUniversal and Comcast spectator.
 By being owned by Universal, Working Title are benefiting a lot. They will receive more money to fund their projects, so they can not only improve the quality of their projects, but also improve and widen their marketing campaigns to bring in a bigger audience. At the top of the chain of parenting companies, there is the biggest mass media company in the world. This means that the company has multiple television networks that are seen by most likely billions across the globe, as well as various other popular points across the media platforms to advertise their project and draw in the audience.

4. Because Working Title is owned by a company as big as Universal, and they go as far up as Comcast, Working Title manage to have a bigger budget to produce bigger films, and also have the ability to widen their audience to an international market, and have a greater opportunity for global marketing. They can produce higher budget movies, thus increasing the quality of the films that they make. However, by being in partnership with such a big company, Working Title are minimizing the opportunity of creating more indie films that carry a risk, as the big corporations are more likely to fund a project that is mainstream and is guaranteed to ensure an audience.

5. Risk free film:

• The World's End

    Mainstream films:

• Closed Circuit
• I Give It A Year 

    Projects they feel passionate which have risk factor:

• Rush
• About Time 

Extension questions: The Hobbit: The Desolation of Smaug

1. Does The Hobbit franchise illustrate any wider trends in terms of contemporary film production?
There are many contemporary trends of modern day films that are illustrated in The Hobbit franchise. One example of this would be the dominance of blockbusters in the modern film industry. There is a rise lately in the success of films with a simplistic storyline which gain a large profit, way exceeding the film's original budget. Another trend that is common in the modern industry, especially in the action or fantasy genres, is the rise in British actors being selected. Over the past few years many British actors have come to fame, staring in many international films. Attaching these rising stars and their names to the franchise is often done by the institutions to increase the attention brought onto the film. One final trend that is seen in both The Hobbit and the wider film industry is the collaboration of multiple institutions to fund and produce the project. For example, for The Hobbit, New Line Cinema, Wingnut productions, and a few other institutions collaborated with Warner Bros to create this film

Warpfilms

1. Background/history of the company. What box office  successes has the company had?
Warpfilms have produced many films which have been a success, mainly in Britain:
-This is England
-A Complete History of my Sexual Failures
-Exhibit A
-Four Lions
-This is England '88
-The Midnight Beast (TV)

Warp films is an independent film company based in Sheffield and London, with a further company in Melbourne, Australia (Warp Films Australia).
It was established by Warp Records founding partners Rob Mitchell and Steve Beckett. It was originally created with financial support from NESTA and had a remit to produce a number of short films.
The company has won many prestigious film making awards for their work


2. How is the company structured?
Warp Films was established from Warp Records.
Warp Films quickly expanded in 2006 and set up a sister company dedicated to digital, low-budget filmmaking driven by creativity and independence, established with the backing of a consortium of industry bodies. They produced six low-budget films in three years, Warp X redefined the industry rulebook for the way in which such productions could be approached in the UK.
Warp Films now has two sister companies which expand beyond the UK boarders- Warp Films Australia and Warp X.
In the past, warp have made many partnerships. Their film 'Grow Your Own' was made as their first collaboration with BBC films, and they also have ongoing contracts with Film 4 and Channel 4.

3. What genre of films does it produce? How are these targeting British audiences? 

The types of films produced by Warp Films tend to follow the more controversial story lines and narratives that other companies do not risk covering. They tend to try and take a controversial insight into British life, 'This is England' and 'Four Lions being clear examples of this. 
Warp take on the dark British humour that tends to be neglected in modern film making, creating twisted story lines that carry sensitive themes such as terrorism. This means that Warp aren't just fitting into the genre of comedy- they are also expanding it and taking it down an alternative, more taboo filed route.
Drugs, murder and other controversial influences play heavy roles in these films, too. The company uses these influences to create a sense of social realism. They also challenge the idea of power and corrupt power. 
Mixed into the surreal humour, we also are given a flavour of aspects of the love, war, murder, and mystery genres. That's the thing that makes Warp Films such a success, and a breath of fresh air to the film industry. They play outside the box, and never follow the guidelines of playing to a selective few genres. All of their films carry a happy balance of each genre and mix them to create unique tales that are new to their audience, and have not yet been covered- the films are constantly treading on new turf- untouched by even the biggest American names.
Due to the controversial, taboo nature that comes with these unique films that are produced, Warp has ultimately limited it's audience to above the 18 mark. 

Distribution: Marketing and promotion

Partnerships with other brands:
Google:
One brand that had a major involvement in the more recent promotion of The Hobbit is google. They set up and digitally modified with the help of the team that did the CGI for The Hobbit an entire online Middle Earth that can be explored.

Air NZ:
Air New Zealand have been heavily involved with the marketing promotion of The Hobbit. For the release of both 'An Unexpected Journey' and 'The Desolation of Smaug', Air NZ transferred images for the film onto planes that would fly across the world- to London, L.A., Wellington etc.

They also did other things, for example hanging and setting up models fitting to the size of the character's scale, and creating health and safety videos the be shown to all of their passengers, as well as the whole world:

By teaming up with Air NZ they not only spread the word via news on the internet, but also they managed to reach word of the film to people all around the globe that were either using the airports, the plane, or just looking into the sky.

Toys and figurines:
The Hobbit teamed up with companies such as Funko, Funko POP!, The Bridge Direct, Lego to create a number of toys and figurines to help promote the film. This synergy helped to reach out to a wider audience because they would now have the name of their brand pushed onto toy shop, comic book and general shop shelves globally.

The Hobbit: Producing the film and audience