Hollywood's Dominance in the Global Market: Strategies and Approaches to Growth - Essay Example

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Hollywood's Dominance in the Global Market: Strategies and Approaches to Growth November 21, Table of Contents Introduction......................................................................................................................................4 Hollywood in Global Film Markets.................................................................................................4 Growing Demand for Hollywood Films..........................................................................................5 Marketing Strategies of Hollywood.................................................................................................7 Creating Global Demand.................................................................................................................9 Communicating to Global Target Markets.....................................................................................11 Controversies of Hollywood's Dominance....................................................................................12 Conclusion.....................................................................................................................................13 References......................................................................................................................................15 Executive Summary The ability to grow into a dominant market within the film industry is one which requires specific straetgies and techniques that appeal to a mass market on a global level. An example of a successful company which has moved into global recognition is Hollywood. The strategies and techniques which have been used with Hollywood have created a sense of dominance over the market. This comes from the techniques of products offered as well as the cultural affiliations which Hollywood has used to create a strong demand on a global basis of the movies that are released. This has combined with a variety of strategies to assist with the market and the needs which are a part of Hollywood. Defining and examining the different techniques which Hollywood has used to continue to grow globally is one which helps to redefine the power of media when used in conjunction with the proper strategies and marketing techniques. Introduction The ability to reach specific markets within media is one which is dependent on a variety of media components and the relationship to the audience. The role of Hollywood and public service broadcasters is one area which is continuing to change because of the changing trends and approaches which are being used with technology and entertainment. Examining the responses from broadcasters and Hollywood media is one which is changing according to the trends and expectations from the socio – cultural formations and expectations. This report will look at the patterns of media consumption and how these are continuing to change. This will further with an understanding of the changes with online media, media ownership and the rights that are altering the approach to media productions. By examining the different trends, there will be an understanding of how media should continue to approach expanding the market and working toward new mediums within Hollywood. Hollywood in Global Film Markets The ability to work toward specific target markets is one that is now a part of the entertainment industry. Hollywood has expanded this with the ability to reach global film markets and the concepts that are associated with the information which they give to others. The approach which has been used with Hollywood and the global film markets is based on being able to create different plots and stories that are able to reach a different set of individuals while establishing a sense of mastering the different techniques which are used for the films that are created. These different concepts are able to provide a specific technique that allows the films to not only be based on the ideologies of what is required for creting the right movie. The techniques and applications are also allowing Hollywood to sell the films for the mastery and expected investments that are a part of the industry. This is resulting in creating different means of production and establishing an international role that moves beyond the basic concepts and into a stronger presence that is required for the film industry. The establishment of the films has led to politics within the organization of cinema, industrial concepts of film, as opposed to the art of production and the international role that is now being created with film (Trumpbour, 2009). Growing Demand for Hollywood Films The beginning of Hollywood's movement into international recognition began in the early 1940s with the first movies which were filmed on screen. Hollywood was immediately recognized for moving ahead of other countries in terms of technology and the use of different plots to make the correct films. This demand allowed Hollywood to immediately set the standards with films and the different concepts that were associated with this. This was combined with the ability to move ahead of others that were in the film industry in terms of experimentation and setting the standards with film techniques. By the 1980s, Hollywood was recognized for the pop culture entertainment that was on films and which consisted of a variety of genres not found from other countries or from independent film makers. The ability to keep these standards led Hollywood into one of the dominating forces while creating new strategies to continue to remain ahead of others with the films which were a part of the industry (Silver, 2007). The concept of Hollywood's rising demand in film, specifically from the 1980s, is stemmed with the strategies and approaches which have been taken with the market which has been created for the films. The production of the films follows a specific, formulated approach that is known to reach specific target markets. The approach has been to create content specific alternatives which remain protected by the Hollywood concepts associated with creativity. This is followed by remaining industry specific with the film techniques and concepts which are used for the creation of the Hollywood films. This is followed by the productions which are segmented for specific global markets and keep the Hollywood name to ensure a strong return in the films that are created. It is noted that Hollywood uses a six step process to help with the growing demand of the films. This is inclusive of specialization, independent production, aggression in the global marketplace, using new technology to reach the market and competitive advantages that are associated with the cultural expectations that are a part of the Hollywood techniques and stories. The result is the concept which creates an understanding that Hollywood develops films that are superior to others and which retain a specific level with the techniques developed for those interested in different genres of film (Scott, 2002). Cultural Strategies of Hollywood A specific concept that Hollywood has used to increase with the demand is to tap into the cultural affiliations throughout different regions, combined with creating a Hollywood culture that helps the company to remain at a competitive advantage. Hollywood's dominance over the market is one that has grown from a national to transnational and supranational existence through the use of culture. The national identity was based on the boom that occurred in America starting in the 1950s to celebrate the new technologies that were emerging during the time. The innovation at the national level created a specific identity for those who were intersted in technology and entertainment with the films which were created. This expanded to the transnational identity, specifically because most didn't have the competitive advantage of Hollywood by the time the technologies continued to emerge. The last component was based on the supranational exposure, specifically which uses the Hollywood popular culture to create icons throughout the world and to leverage the interest of those who are interested in the specific films and ideologies that represent Hollywood. By building Hollywood into a popular icon, there is the ability to develop an understanding of the associations that are a part of the culture of belonging to the Hollywood films (Bergfielder, 2005). There are a variety of ways in which Hollywood has expanded on the culture to reach a supranational state. The main approach has been to use the media and different elements to appeal to the masses and to draw interest into the films which are created. This is done first by the actors and those who are known with the fame of Hollywood to represent the films Papparazi, interviews and exposure through ads and commercials builds the recognition and fame of Hollywood so it continues to dominate within the region. This is followed by having a diversity of icons that are able to represent a variety of individuals in different regions while continuing to cross cultures with celebrities which reach to different regions of the earth to help individuals which are interested in the films. This main culture is one which expands to wearing different types of clothing, moving into popular music and connecting to specific age groups and trends that are connected in different regions of the globe. By adding these together, there is the ability to develop a competitive advantage that appeals to the masses. More important, it creates a culture that is specific to Hollywood and which continues to create an appeal on a global basis for those interested in the films (Sigismondi, P, 2011). Marketing Strategies of Hollywood The marketing strategies that Hollywood has approached begin with the techniques that have set Hollywood apart and move beyond the culture which has been made with the film industry. To continue with this, are specific marketing strategies that have been developed to assist with the business model that has allowed Hollywood to remain ahead. The first component of this is the strategy to the product that Hollywood continues to develop. The products have the celebrities and larger names that help Hollywood to stand apart, as well as high – end technology and specialized approaches that are used for the films. This is combined with the concept of creating representations through the product, such as with the social and cultural trends and their association with the movies that are created. Building a mass appeal that is developed from the trends in society allows Hollywood to combine the creative with the demands from the mass consumers at a global level while helping to develop a sense of film making that connects to different generations (Ryan, Hearn, 2010). The next phase of implementation that is used with the Hollywood strategies is based on creating production clusters that offer low – cost services to Hollywood. This is done by releasing all films at similar times while creating a sense of organization to the overall structure which is a part of the industry. By creating this sense of organization, there is the ability to dominate the market while building expectations that are related to the Hollywood culture and which create a sense of suspense with the next films. The media and the coverage helps to build the expectations through both press releases and advertisements that move through a variety of portals before the release. Having the marketing strategy associated with the mechanics of Hollywood helps to develop a different association with the movies while building a specific response to the target market. The pipeline works not only with cost effective solutions but also relates to a psychology that allows individuals around the globe to continue to follow and wait for the information that is associated to the Hollywood performances and the new attractions. This builds on the overall culture while creating a stigma over the film releases that are expected to be completed within given time frames (Davis, 2011). The marketing that is used today is based on a sense of vertical integration that is continuing to spread through the market and to create a sense of dominance over the media that is taking place. The basis of Hollywood is known to take over 10% of the global market, specifically because of the vertical integration that is taking place. This is inclusive of the step – by – step process that is used to make sure that each film builds a stigma and cultural response at a global level. The vertical integration begins with previews and building expectations toward the releases that are going to come next into the market. This is followed by interviews and celebrities which represent the films and which continue to build the expectations with the film. The next step is to have the opening nights and reviews that are covered in the media, all which integrate several ads and responses from the media toward the films that have been released. By the time there is a release in the film, there is global recognition from the mass amount of coverage and the vertical integration which takes place. This continues to draw the appeal of the market through the Hollywood culture that is created around the movie (Arsenault, 2008). Creating Global Demand The basic structure for Hollywood's strategies is now being followed by the movement into globalization and the expectation of having more releases internationally. It is now known that Hollywood is creating specialized segments and markets throughout the globe by creating a special status and stigma around specific releases. There are different releases that are now being presented to the global market before being released in the United States. This strategy is being used to create more with the international box office while creating a stronger global demand. The approach is one that is based on the social and cultural trends that are taking place internationally, as opposed to the United States. For instance, the use of 3D in Singapore is one which is continuing to grow in demand. To meet the specific demand, Hollywood pre-releases films such as “Thor”, a 3D movie that generated over $130 million from the international box office before being released in the United States. This tactic is working to create a specific culture that is surrounding different regions which are interested in the Hollywood movies that America isn't. More important, it is causing the advertising of the movies to go back to the United States. Reviews, customer responses and social media networks are able to spread word of mouth about the movies before it gets back to the United States, even though it may have not been popular. This allows the movie to gain a stronger reputation in the United States, even though the cultural appeal may have not been the same. This specific tactic has led to over 67% of the revenue for movies to be outside of the United States while more films are opening to specific countries first. Hollywood is continuing this with Chinese language films, cultural films and specific target market plots. It is expected that this strategy will allow Hollywood to grow by 5% each year, reaching $1.7 trillion by 2014 (Jessop, 2011). The concept that Hollywood has begun to use with the demand for the global market is one that is now shaping the way in which movies are made while creating a different set of films for those interested in the Hollywood movies. It is noted that plot changes, alterations in languages, independent films and the connection to different cultural concepts are beginning to drive forward a majority of the movies that Hollywood is making. This helps to build appeal overseas and creates a stigma around the Hollywood culture which is being used both overseas and in the United States to create even more demand around the films. The change is one which is up by 58% from 2000 and is completely transforming the way that films are being made. Not only is there a global demand that is rising according to the changes in the film industry to hit the foreign markets. The segment of markets for different cultures is causing most Americans to look at the foreign and ethnic films with new interest and as a welcome change to the culture of the Hollywood film. It is noted that this has occurred specifically because of the shift into the global culture and economy. The change is one which began specifically because Hollywood noted a fall of 20% during the economic crisis, specifically which was recovered within the global economy and from the release of other films that were more pertinent to other areas and which made up for the lost revenue from the United States. The approach is now to tap into the local cultures that are in different regions and to create plots and tactics to interest both the local cultures and to move back into the global field so there isn't releases that seem to be too American for the international scene (Schuker, 2011). Communicating to Global Target Markets The concept of working into global markets and the switch that this has made with Hollywood is one which is now beginning to create specific target markets that are recognized within each region. For Hollywood, this is building a different approach to the films which are being made while communicating messages that are specific to each culture. The ideology now is to create cultural products that fit into specific regions and which creaates the same Hollywood stigma in the area. An example of this is with the Indian market. Newer movies, such as “Slumdog Millionaire” and “Eat, Pray, Love,” have combined both the Hollywood stigma with the realities of India to create a cultural market and to communicate a specific message. In “Slumdog Millionaire,” a celebrity from India was used, specifically which built the national pride of India. This was followed with the realistic depiction of the plotline while combining this into the Hollywood techniques known throughout the region. In “Eat, Pray, Love” the culture of India was designated as the product while Julia Roberts changed into the Indian style of eating and dressing. This led to a cultural affiliation with the movie and created an emotional interest from the culture. As the emotional interest released in India, it led back to the United States and other regions to investigate the plot line and how it linked to the segmented market. The strategy that Hollywood is using then provides different approaches to get even better results within the market (Economist, 2011). Controversies of Hollywood's Dominance The concepts that have developed continue with the question of how Hollywood will continue to approach the new foreign viewers and approacah to the global market. While it is expected that there is going to be a continuous rise in the films, there are also others who are critiquing and questioning the dominance that Hollywood has over the market. An example of this comes from independent and smaller types of film makers, such as local film makers. For example, the Korean market that is associated with independent and smaller films is creating a sense of cultural tensions and controversy toward the approach which Hollywood has created within the field. Independent film makers are unable to compete with the amount of money and the options that Hollywood has to release films with the strategy that is being used. More important, the local culture that has established specific expressions in creating films is unable to have the right approach and needs to the market and is unable to continue to move forward with the independent films that used to be readily available to the public. This controvery is one which continues to arise because of the debates that don't have any policies or regulations with the releases as well as the flexibility which the entertainment industry holds in releasing different alternatives in the industry (Kim, 2008). Despite the flourishing success that is a part of Hollywood, this controversy is one which may pose a threat to the future success of Hollywood and the ability to continue to build within the foreign market. There is a continuous force of local and smaller film makers in other regions to change their approach to filmmaking to try to reach the same approach as Hollywood in terms of techniques and outside of the experimentation which is often used with foreign films. This particular aspect is causing several filmmakers to lose money and to not have the necessary alternatives with the films that are being made. This particular concept is one which requires the filmmakers to find different policies or regulations or to become more competitive at both a local and international level. If this does occur, then Hollywood will need to alter the approaches and strategies in the global market while finding different ways of focusing on the cinema that is working into different segments of the market. While the threat isn't currently posing too much of a problem with Hollywood, there are future prospects that are pointing to the need to change and become flexible in the distribution of specific movies (Marchetti, 2007). Conclusion The concepts which are associated with Hollywood are creating a global demand that is monopolizing the culture of film internationally. The demand has grown from the beginning of Hollywood, specifically with the culture that was created and the ability to have specific technologies and advantages within the industry. This has followed with different approaches and strategies that has allowed Hollywood to continue to dominate internationally with expectations of growth by 5% each year through the global marketplace. The strategy created has begun with the plots and focus on creating a global appeal to different types of movies. This has followed with a strategy that has allowed Hollywood to implement and advertise movies through a vertical process to develop the right response from the given market. This is continuing to develop strong recognition in different communities of the films while creating a stigma with the popular culture of Hollywood that is leading to even more developments. While there are some threats with the policies and expectations from local filmmakers in the global industry, the contributions that Hollywood is making at this time is creating a different approach to the market and the ability to develop entertainment for a global audience. References Arsenault, AH. (2008). “The Structure and Dynamics of Global Multi – Media Business Networks.” International Journal of Communication 51 (3). Bergfielder, T. (2005). “National, Transnational and Supranational Cinema? Rethinking European Film Studies.” Media, Culture and Society 51 (3). Davis, CH. (2011). “The Media Cluster: Between Culture and Commerce.” Media Clusters: Spatial Agglomeration and Content. (8). Economist. (2011). “Bigger Abroad: Forget the Oscars. Films Need Foreign Viewers, Not American Prizes.” The Economist (February). Jessop, Sonia. (2011). “Hollywood Presses Its Global Agenda.” The New York Times (May). Kim, Eun – mee. (2008). “Market Competition and Cultural Tensions Between Hollywood and the Korean Film Industry.” Yansei University. Marchetti, G. (2007). Hong Kong Film, Hollywood and the New Global Cinema: No Film an Island. New York: Routledge. Ryan, D, Gregory Hearn. (2010). “Next Generation Filmmaking: New Markets, New Methods and New Business Models.” Media International Australia: Incorporating Culture and Policy (51). Schuker, Lauren. (2011). “Plot Change: Foreign Forces Transform Hollywood Films.” The Wall Street Journal (August). Scott, Allen. (2002). “A New Map of Hollywood: The Production and Distribution of American Motion Pictures.” Reginal Studies 36 (9). Sigismondi, P. (2011). “The Drivers of Hollywood's Competitive Advantage.” The Digital Glocalization of Entertainment 61 (3). Silver, J. (2007). “Hollywood's Dominance of the Movie Industry: How Did It Arise and How Has It Been Maintained?” Queensland University of Technology. Trumpbour, J. (2009). Selling Hollywood to the World: US and European Struggles for Mastery of Film Production. UK: Cambridge University Press. Read More