UNIT 2 Communication Skills for Creative Media Production Task 1
Extract information
Cineworld
Cineworld Strategy
This strengthens my idea as Cineworld stated on their website under their ‘strategy’ section that they
are looking for opportunities to grow their company. (Cineworld plc) This is therefore useful to quote in
my pitch to them, to show that I have looked into their business model and that I have researched them
thoroughly.
Cineworld plc - Strategic report
Customers are booking online to
go to the cinema, which means
that they have access to an online
facility. The article states that
booking online has increased by
12%. (Cineworld plc) Therefore
they would possibly use the
internet to watch films online.
Company overview
Useful information for target
audience: Cineworld had 82.9
million admissions in2014, and
revenue of £619.4 million.
(Cineworld plc) This shows that
they are a healthy, viable
business model with a high
amount of cinema admissions.
This means that they already
have a good platform for the films
online idea.
I wanted to research 2015 figures to see if they had increased
or decreased over the year, to see if it was a growing
company. I thought that if they were a developing company,
then they were more likely to try new ideas. The graphs left
and below show £705.8 for 2015, an increase of £86.4 million.
This was a good use of information for my ‘cost’ and ‘target
audience’ slides as it clearly shows that they are profitable.
Cineworld already have the
‘unlimited card’ at £16.90 per month
for an unlimited amount of movies to
watch at the cinema, so my idea
would incorporate this and have the
option of unlimited movies at home
for the same price of £16.90 per
month. I would also have options for
‘Pay per film’ and ‘Films to keep’ with
variable options for both. I would also
have a combined unlimited cinema
and online option at £25.00.
I researched the current snacks and drinks revenue that the
cinema receives from customers attending the cinema to watch
a film. This was crucial to establish how profitable they were; as
it was no use starting an online option if the food and drink
drastically dropped as a result. Future projections would need to
be monitored to determine whether it would affect sales.
Research suggests it wouldn’t, as healthy food and drinks
revenue at present at £107.2 million in 2015 with a rise of 8.1%.
MPLC
Film license research to buy or rent films online
I researched MPLC about film licenses as
I wanted to know about licenses, if I was providing online films for profit. Cineworld already have
appropriate licenses in place for their cinema operation.
Netflix
(BARB)
Graph above shows households that watch Netflix, Amazon and Sky’s Now TV. This was
beneficial to establish how many households watch each main competitor. Netflix is the main rival
with over 5 million households watching TV programmes or films at the end of 2015.
Financial statement
Netflix, Inc.
Segment Information
(unaudited)
(in thousands)
As of / Three Months Ended
March 31, June 30, September 30, December 31,
2014 2014 2014 2014
Domestic Streaming
Total memberships at end of period 35,674 36,244 37,219 39,114
Paid memberships at end of period 34,377 35,085 36,265 37,698
Revenues
$
798,617
$
838,225
$
877,150
$
917,442
Cost of revenues 517,094 546,223 565,251 573,193
Marketing 80,258 64,727 61,045 87,423
Contribution profit 201,265 227,275 250,854 256,826
Contribution margin 25.2% 27.1% 28.6% 28.0%
International Streaming
Total memberships at end of period 12,683 13,801 15,843 18,277
Paid memberships at end of period 11,755 12,907 14,389 16,778
Revenues
$
267,118
$
307,461
$
345,685
$
387,797
Cost of revenues 245,267 266,697 291,942 350,211
Marketing 56,840 56,036 84,609 116,248
Contribution profit(loss) (34,989) (15,272) (30,866) (78,662)
Contribution margin -13.1% -5.0% -8.9% -20.3%
Total Streaming
Total memberships at end of period 48,357 50,045 53,062 57,391
Paid memberships at end of period 46,132 47,992 50,654 54,476
Revenue
$
1,065,735
$
1,145,686
$
1,222,835
$
1,305,239
Cost of revenues 762,361 812,920 857,193 923,404
Marketing 137,098 120,763 145,654 203,671
Contribution profit(loss) 166,276 212,003 219,988 178,164
Contribution margin 15.6% 18.5% 18.0% 13.6%
Didn’t use this data in the end as not detailed enough for my research. Has overall revenue for all
countries except USA, but only wanted research mainly for the UK. Although Cineworld would look
to forward the online concept globally, this research is not relevant at this moment in time as it
cannot be analysed any further than a basis level shown above. It is good to use as an overview at
the start of the research to show the size of Netflix in USA and internationally to establish market
size for Netflix but more details are needed, so I began to look at other areas of Netflix for a more
detailed analysis.
BFI
This table from BFI shows the top ten films played on Sky Movies in 2014
NOW TV
£9.99 per month for Sky Movies – good to have movies with no contract
Ofcom
By age
1609 240 277 319 265 228 280
Information above shows how many people in the UK watch TV or films online at least once a
week out of 1609 people surveyed in 2007 and in 2014. I found that 27% of people asked, watch
TV or films online at least once a week, with the highest figure at 39% for 16-24 year olds. 12% of
over 65 year olds use the internet for this activity and all age groups show an increase since 2007
of between 11 and 25%.
I wanted to find out possible audience information by age, but also by socio-economic groups to
establish how many people watched TV or films online as this was relevant to my idea. If not many
people watched TV or films online, then my idea would not materialise.
Group AB is the highest figure at 30% to watch TV or films online at least once a week and group
DE is the lowest figure at 22%.
27% of people in the UK watch TV or films online at least once a week
33% watch TV or films less than once a week online.
60% of people in the UK use the internet to watch TV or films online.
(Ofcom: page 81 from the media use and attitudes report)
Base: All adults aged 16+ who go online at home or elsewhere (1272 in 2013, 1609 in 2014)
I wanted to use a graph and found these on the Ofcom website. It clearly shows that since 2005,
internet use has increased from 59% to 86%. This is significant, as my idea is all about internet
use for Cineworld customers and potential customers.
(Ofcom)
(Ofcom)
This shows a healthy increase in the amount of people that have access to the internet. Therefore
if they have access to the internet they have the potential to watch your films online.
60% of 1609 watch
programmes or films online
compared to 54% in 2013.
This is a healthy increase
overall of the amount of
people that use the internet
and I can use this
information in my ‘Target
Audience’ section.
The only negative point
about this survey is the
number of people that took
part in the survey. It
represents a very small
number of people, so could
be seen as bias. Further
research would need to be
completed to be objective.
Statistic Brain Research Institute
Netflix statistics
Useful information for total number of subscribes to establish how large Netflix is, as a company,
but this figure is worldwide and I wanted to know figures for the UK, so I didn’t use this information
in the end.
Source:StatisticBrainResearch Institute
ResearchDate:April 3rd, 2016
Netflix Statistics Data
Total number of Netflix subscribers 81,500,000
Total annual Netflix revenue $5,504,000,000
Number of hours spent by Netflix members watching streamed video on hi-speed
internet
2 billion hours
Total number of Netflix viewers who watch live stream via video game console 50%
Percentage that Netflix Snail-Mail will make up of all disc-rental spending 35%
Total percent of Netflix members who watch both Television shows and Movies 36%
Total percentage of Netflix subscribers who use service via mobile phone 6%
Total number of Netflix distribution centres 58
Total percentage of Netflix subscribers who use their computers to stream and watch 42%
Total percentage of Netflix subscribers who watch by connecting their computer to their
T. V.
14%
Netflix beganasa DVD bymail rental service andhasgrown intothe largestonline providerof streamingmovies.
Withoriginal serieslike"House of Cards"Netflix hasmovedintothe networkproductionarena.
AS Business studies
I looked through the AS Business Studies book by Ashwin, Merrills, Thompson and Machin and
found on page 31, useful information about promoting a product. I extracted the following:-
Consumers are faced with so much choice that it is often the business that ‘shouts the loudest’
about its products that gets noticed. Promotion is essential to:
· Increase demand for products
· [...] create, enhance or maintain a brand image
· Raise awareness, emotion or concern for an issue or product
· Maintain, protect or increase market share’
The Guardian
An article about how many people in the UK watch films online in The Guardian newspaper.
75% of people told Ofcom in April 2015 that they use online TV service to watch films.
Useful information to establish out of all the people in the UK that watch programmes online, 75%
watch films, as opposed to other programmes. This is such a high number of potential people to
watch Cineworld films, so my idea is a strong one to compete for a share in this market.
Ofcom states that Netflix has 4.3 million subscribers in the first quarter of 2015. Amazon had 1.2
million and Sky’s on-demand service had just over ½ million.
The Guardian article also states that online TV was worth £317 million in the UK in 2014.
This again is useful information to establish how many customers watch programmes online and
potentially could watch films online. This is relevant information for my pitch to Cineworld.
The Telegraph
A newspaper article about how many people watch TV online in The Telegraph.
How the web is reshaping TV
New services from Sky and the BBC show that the web is creeping into TV more than ever. But
what does the future hold?
By Sophie Curtis, and Matt Warman
11:20 AM 21 Aug 2014
The internet has fundamentally changed the way we watch TV. In the past, the whole family would gather
together around a television set, flick through channels and watch a prime time TV show or a football game.
But thanks to the web, people now watch TV on their mobile phones, tablets and laptops. Services such as
YouTube, iPlayer and Netflix allow viewers to see the programmes they like at a time that is convenient to them,
and social media enables discussions to take place around popular shows.
A recent survey by Accenture found that 36 per cent of UK consumers are viewing full-length movies and TV
shows over the internet on a daily basis, and a further 40 per cent do so weekly.
Sky recently redesigned its homepage to put on-demand viewing on an equal footing with live TV, and what
could have been a controversial move passed with hardly a flicker of public complaint. In fact, according to Luke
Bradley-Jones, Sky’s director of TV products, the company's research says that the tables have now turned, and
that change was welcomed by users.
"We know customers love the new Homepage as it puts catch-up, box sets and movies at the heart of their TV
viewing," he said. The TiVo platform, widely used in America and offered on Virgin Media in the UK, is the only
popular service to have attempted such functions before.
So far, however, the internet has had very little impact on the way TV is made. The web is primarily used as a
distribution platform for traditional TV programmes that are designed to be watched in a traditional fashion.
This is perhaps unsurprising, given that video streaming is still a relatively new phenomenon. But just as TV
began as radio with pictures and evolved from there, broadcasters and media companies are now able to
explore the creative opportunities that the internet presents – particularly when it comes to providing a more
interactive experience for viewers.
The advantage of a broadcasting system built on the internet is that programme makers are not limited by
capacity (which is not the case with traditional broadcast), and also that they're freed from the customary
schedule. This means they can include reams of data in addition to video and audio, and guide viewers to
content they're more likely to enjoy. There is, after all, no obvious connection between The Great British Bake
Off and the Ten O'Clock News.
"At the moment, we’re just watching television on the web, and we’re not really taking advantage of the fact that
we’re on this amazing platform where everyone is connected to everyone else," said Phil Tudor, principal
engineer at the BBC's research and development division…
"But we see that as the end of the beginning. We've got people to the corner, and now it's about getting people
to look around the corner, and see there’s another leg in the journey. For me, we’re just at the beginning of that
next leg."
For now, much of the industry is still focused on the 'webification' of existing services: while Netflix and iPlayer
are eager to suggest new ideas, integrating that into existing interfaces is difficult, especially when every TV
manufacturer's electronic program guide (EPG) is different.
Sky's latest upgrade includes suggestions for a customer's next programme, along with the idea that the option
to record a show should carry over across series. Both are simple, web-enabled changes, but they're integrated
into the broadcaster's main services in a way that is not possible elsewhere. Customers, Sky says, will find new
shows that they might enjoy, based on recordings or downloads in their planner.
“Over half of our 10m TV customers have connected their Sky+ boxes to the internet so they can get services
like TV Box Sets, resulting in millions of on demand sessions," says Bradley Jones.
"This is due to even more great content being made available on demand, combined with a continued appetite
from Sky customers to take control of when and where they watch TV. There was a fourfold increase in box set
viewing in the last three months, with over 86 million box set downloads. And our research shows people are
generally watching two to three box set episodes per sitting.”
The cumulative effect of these new ways of filming and distributing TV shows is that the web is not only
becoming more deeply integrated with broadcasting, it is beginning to fundamentally reshape what we watch –
and how we find it in the first place.
3DCart
How to set up a webpage
These examples show how to add
a webpage and menu link to an existing website. This would be useful if I were to create the
webpage for Cineworld cinemas as it gives all the information I would need.
Network Solutions
How to set up a webpage
It was very worthwhile to research, to be aware of what it entails to create a webpage and to
envisage how much time it would take. I think this was a good idea to do this, so that I could
appear more professional in front of my client.
BARB
Statistical data from BARB about ‘The impending death of traditional TV’
1/4 of UK
households have a subscription video on demand service – that is a lot of people that could
potentially watch recent films online.
The impendingdeathof traditionalTV
The picture we gleanfromthe EstablishmentSurveydoesnotsupportthe more evangelical rhetoricaboutthe
evolutionof SVODheraldingthe endtomainstreamTV aswe know it.The EstablishmentSurveyfocusesonclaimed
uptake of SVODand so doesnottell usabout the viewinghabitsof SVODhomes.Butitdoestell usaboutthe types
of householdsthatsubscribe,andwe candraw some inferencesabouthow viewerssee theirpurchase of anSVOD
service.
The data suggestthat SVODappealsto householdswhoalreadyconsumeagreatdeal of TV. The chart belowshows
that 55% of SVODhouseholdsare large (three ormore occupants) comparedwith35% of the overall household
population.
SVODhomesalsoskewyoungerandmore up-marketthanthe average:40% of the occupantsof SVOD homesare
aged24 or under, comparedto30% inthe populationasa whole; 64% of SVODhomeshave an ABC1 social grade,
comparedto the national average of 51%.
The bias towardshomeswhichalreadyhave payTV servicesis clearwhenwe lookatthe penetrationof SVOD
servicesbyprimaryplatform.Netflix andAmazonVideohomesare significantlymore likelytobe cable orSky
subscriptionhomesthanaverage;thisisnottrue forNow TV, whichismarketedatterrestrial viewers.Penetrationin
cable and YouViewhomesisparticularlyhighbecauseof the dealsVirginMedia,BTandTalkTalkhave made with
Netflix;30%of cable homesand31% of YouView homestake Netflix comparedto13% of terrestrial onlyhouseholds.
One factor that contributestothisdisparityisthe lowerbroadbandtake-uprate interrestrial onlyhouseholds.
Broadbandtake-upinYouView,Skyandcable householdsiswell over90%,while interrestrial-onlyhomesitisonly
71%. Homesneedbroadbandtouse SVOD.
The overlapbetweenSVODservicesandverysimilartraditional servicesisparticularlystarkwhenwe compare SVOD
penetrationinpayTV householdswhichhave SkyMovies;aservice whichisusuallythoughtof asa directcompetitor
to Netflix andAmazonVideo. Inreality,itislessacompetitorthana companion:SVODpenetrationgoesupfrom
35% incable homesto 43% withincable homesthatalreadyhave aSky Moviessubscription.
The picture is clear: SVODhomesare not swappingouttheirtraditional TV forSVOD,theyare usingSVODservicesto
getevenmore of what theyalreadyhave.
The data from the EstablishmentSurveyshowthatSVODservicesare significantlymore popularinlargerhouseholds
withchildren.However,itdoesnotsupportthe commonlyexpressedview thatanentire generationof youngpeople
has more or lessabandonedtraditional TV infavourof binge viewingonNetflix orAmazonVideo.The nextchart
showsthe proportionof the populationwithindifferentage bandswhichhasaccess to SVODservices. SVODtake-up
ishighestamongstchildrenandyoungadults,butitisstill the case that lessthan50% of 16-24 year-oldshasaccess
to an SVODservice.Andforall the hype that childrenare gluedtoNetflix,the realityisthatonly three intenchildren
live ina householdthatsubscribestothisservice.
The take-upfiguresinthe age groupchart appearoverall tobe slightlyhigherthanthe take-upfiguresbyplatform;
thisisbecause the platformfiguresare byhousehold,andthe age group figuresare forindividuals.SVODisskewed
towardslargerhouseholds;since there are more people inSVODhomes,SVODtake-upbyindividualsishigherthan
it isby household.
Notall SVODservicesare createdequal
The EstablishmentSurveydata underlineNetflix’sdominance amongSVODserviceswhenwe lookatthe proportion
of userswhouse onlyone service.A muchhigherproportionof AmazonVideoandNow TV householdsalsohave
Netflix thanthe otherwayround.82% of Netflix householdssubscribe toonlyone SVODservice,comparedwith49%
for NowTV and 54% for AmazonVideo.
Thispointsto a higherlevel of service satisfactionwithNetflix.Itmayalsobe the case that the bundlingof Amazon
VideowithAmazonPrime meansthatsome Amazonusersare lessdirectlycommittedtothe service,since their
primarymotivationisthe otherbenefitsof AmazonPrime ratherthanthe videoservice.
Amazonnothas dedicated
Wired Magazine
Magazine article taken from the October 2014 ‘Wired’ magazine about how internet TV and films is
replacing the television set.
AUT HOR: MARCUS W OHLSEN. MARCUS W OHLSEN BUSINESS DAT E OF PUBLICAT ION: 20.10.14
AS ONLINE VIEWING SOARS, INTERNET TV WILL SOON BE THE ONLY TV
Promising amount of people
MORE PEOPLE ARE watching TV online than ever—a lot more. Viewers may not be cutting the cable
cord altogether, but growth in the number who want to watch TV over a different set of pipes is surging,
according to a new report from Adobe. If anyone was still wondering why HBO and CBS plan to offer an
online-only option, the trend is clear: the internet is where people want to watch. In more and more homes,
online TV isn’t a geeky novelty, a sidelight to the traditional version. It’s just what TV looks like now.
Adobe is in a position to know because its software runs the platform that nearly all US cable customers use
to log into the online versions of their subscriptions, according to the company. Researchers tracked 165
online video views and 1.53 billion logins over a year, and they found that total TV viewing over the
internet grew by 388 percent in mid-2014 compared to the same time a year earlier—a near-quintupling.
And the increase is more than just a few diehards binge-watching: the number of unique viewers well more
than doubled, growing 146 percent year-over-year. On the increase – good sign for idea
Eventually cable will follow bunny ears into the basement of dead technology, and online TV will be called
something else: plain old TV.
According to analyst Tamara Gaffney, three factors are drove this growth: more apps and sites for watching,
more content to watch on those apps and sites, and the World Cup. Sports act as kind of “appetizer”
whetting viewers’ appetites for the flexibility and breadth of online TV, Gaffney says. The World Cup was
an especially strong lure because the internet was the only way to watch so many games that traditional TV
lacked the bandwidth to show. But Gaffney said once viewers came for sports, they stayed for everything
else.
“Households generally connect because of sports,” she says. “But then when they start to use online
television, they start to branch out.”
Back to the Big Screen Encouraging that nearly 5 movies a month are watched – idea viable
According to Adobe, viewers have branched out so much that, for the first time, viewers watched more
movies online than sports. The average was 4.5 movies per month, Adobe says, versus two a year ago.
Viewing of “episodic television” over the internet also saw a sharp increase. The jump is all the more
remarkable since Adobe’s survey doesn’t include the main streaming services: Netflix, Amazon Prime, and
Hulu. In other words, many people still paying for cable are less interested in watching TV in the cable way
and more in the way Netflix has led viewers to come to expect.
“When you want to really binge-view something you didn’t know you wanted to watch until the season was
over, you’re going to turn to the online option,” Gaffney says.
The turn toward online TV, however, hasn’t entirely meant a turn away from the television itself. In fact, the
gadgets that showed the greatest increase in their share of use for internet-TV watching were gaming
consoles and over-the-top devices such as Apple TV and Roku. Where a year ago they accounted for just 3
percent of online TV viewing, they now account for 10 percent. These devices all pipe TV from the internet
to the big screen, and the one thing viewers are still most eager to watch there is sports.
“During the Olympics and World Cup, people wanted to watch on the big screens in their living room,”
Gaffney says.
BroadcastBottoms Out
But unlike traditional TV, the appeal of the online version is that it doesn’t require viewers to commit to a
single piece of hardware. More than half (51 percent) of all online TV viewing happens on iOS apps,
according to Adobe’s figures. And Gaffney believes the iPhone 6 and 6 Plus’ larger screens will only
cement Apple’s place as the platform of choice for online TV. Apple’s timing appears to be good as
smartphones, driven by the embrace of phablets, start to surpass tablets as the online video-viewing device
of choice, according to Adobe’s findings.
Because the Adobe report covers TV-watching by viewers who are paying for cable, it’s hard to read the
results as a sign that more cord-cutting is coming. But getting viewers habituated to the internet way of
watching TV could hasten a less aggregated future, says Gaffney, one where customers may prefer the more
personalized service of an HBO-only login, for example, versus one for their entire cable package. (This is
what my idea is offering)
The big loser would seem to be broadcast TV, since the traditional way the broadcast networks spread the
news about their new shows is on their networks. For people watching TV online, those are ads they’ll never
see. What they’re more likely to see is chatter on social media—if a new show generates enough buzz,
wannabe viewers can track down old episodes online and binge-watch to catch up. More and more, this is
the way TV is now, and there’s no reason the trend will stop. Eventually cable will follow bunny ears into
the basement of dead technology, and online TV will be called something else: plain old TV.
I researchedthe following companiesbelow:-
 3DCart
 Amazon Prime
 AS Business Studies
 British Board of Film classification (BBFC)
 British Film Industry (BFI)
 British Interactive Media Association (BIMA)
 Broadcaster’s Audience Research Board (BARB)
 Broadcasting Entertainment, Cinematograph and Theatre union (BECTU)
 Cineworld
 Motion Picture Licence Company (MPLC)
 Netflix
 Network Solutions
 Now TV
 Ofcom
 Producers alliance for cinema and television (PACT)
 Sky Movies
 Statistic Brain Research Institute
 The Telegraph
 The Guardian
 Wikipedia
 Wired magazine
Recent Films Online
I wanted to choose a media idea that I would use as part of my daily life and I thought that if I
would use it, then other people would want to use it too. I wanted to use Cineworld as they are a
big, multinational company. My idea was to have films that have just been released at the cinema,
available for consumers to watch at home. I believe this is an easy idea for Cineworld as they
already have a website, so all it entails is an extra drop down menu, which leads to another
webpage showing all the films the consumer can watch online (which would be the same as what
is showing in the cinema), along with all the prices. I would keep the price for the online card the
same as the unlimited card (this card is used for unlimited access to the cinemas) of £16.90 per
month, to avoid confusion. If consumers wanted to have unlimited access to the cinema and
unlimited online use, then a combined card could be purchased for £25 per month. The use of up-
to-date films online would give a distinct advantage over the other online competitors because
none of them have recent films. The most recent films are approximately one year old or more
through Amazon, Now TV and Sky Movies. Netflix do have a few 2016 releases (7) which are the
less popular films from horror and rom-com genres.
I decided to break the research into sections to ensure that I covered all the areas, which were:-
 Cineworld (Client: History, facts, facilities, their growth, market strength, strategies)
 Internet - as my idea was based around watching films online (who uses the internet and
how often and what the films online industry is worth)
 Target Audience (How many people go to the cinema, who watches TV and films online
and how often)
 Competitors (Netflix, Amazon Prime, Sky Movies, Now TV)
 Licenses
 Skills, equipment, marketing, cost, Revenue, USP, future requirements
 Future projections (how much do audiences currently spend on admissions and food/drink
and would this be affected by films online)
 Website design
 Ofcom
 Research Trade Unions & Associations
 British Board of Film classification (BBFC)
I obtained my information through the internet, a book, wired magazine, The Guardian and The
Telegraph newspapers on Wednesday 15th June and Friday 17th June. My method was skim-
reading, scanning and searching for specific words. I extracted, highlighted, annotated and copy
and pasted relevant information, as seen above.
Firstly, I researched Cineworld as this was the company that I was pitching my idea too. I found
information on their history, current facts about their company, their views for the future and how
they fared in the market place. I also wanted to see how strong their admissions, food and drink
were because if they were a small company and the takings from admissions, food and drink only
just covered their outgoings, then it might make a difference between success and failure for the
Company. I discovered that Cineworld was a large company with very strong admissions of £93.6
million in 2015 and an increase of £86.4 million. Their financial status improved year on year. They
have up-to-date films but limited online facilities. To have recent films online is a good way of
moving this company into today’s market and I believe it would be strong competition for Netflix,
Sky Movies, Amazon Prime and Now TV.
My idea is online based so I wanted to research how many people have access to the internet,
how many people watch programmes and films online through a survey, how many people watch
TV and films through its competitors and how many hours do people spend on the internet per
week. I also wanted to research figures by age, socio-economic groups and previous years. I
thought this would give me a good idea of how many people watch programmes and films online
and out of those, how many were likely to watch online. As I think that the internet is the way
forward in today’s society, I do not think it would disadvantage Cineworld if it took this idea
forward. It would not cost very much to update their website to incorporate the online film idea,
because they already have the lists, prices, pictures and licenses.
I also wanted to research all the competitors as my idea would not work if the market place was
flooded with companies offering an online film service already. I discovered that four companies
offered films online, which were Netflix, Amazon Prime, Sky Movies and Now TV. They all offered
films up to 2015, except Netflix had seven less popular 2016 films. I also researched the price
range to establish a good price to set for viewing recent films. The prices were on average £4.45
per film for Amazon Prime or £79 per year (£6.83 per month) and £5.99 - £7.49 for Netflix, £38 to
£53 per month for Sky Movies and £9.99 for Now TV. Netflix overall was the cheapest from £5.99
but looking at all their latest releases, which consisted of 74 new released added, when
researched on 15 June 2016; 30 were TV programmes, 7 were 2016, 27 were 2015 and 10 were
older. Out of all the 7 in 2016 and most in 2015 they consisted of the least popular films at the
cinema. There were mostly in the rom-com or horror genre. My idea would consist of all the
current films for people to watch, so £16.90 per month for recent films online, the same as
Cineworlds unlimited admission card, seems like a logical price, but one that could be confirmed
by Cineworld themselves. Overall my idea is to have an online film service and my pricing is a
suggested price – Cineworld would have the ultimate decision in how they wanted to cost their
films.
I researched Trade Unions & Associations but they were not relevant in my research, so I
disregarded. I had looked at Producers alliance for cinema and television (PACT), Broadcasting
Entertainment, Cinematograph and Theatre union (BECTU) and the British Interactive Media
Association (BIMA). I had also researched the British Board of Film classification (BBFC) but again
they were not relevant to my research as they were targeting employees within the media industry
and not consumers with any problems.
I spellchecked and proof-read all my work carefully looking for spelling mistakes, punctuation,
correct grammar, structure and used the thesaurus.
Conclusion
To conclude, I highlighted all the key areas to research by breaking each area down and trying to
think about it from a logical point of view. I then researched each area, trying to get an unbiased
view and enough information on each area to understand it. Once I felt I had researched each
area, I then formed a rough PowerPoint in note form. I then added pictures, more/less information
and rearranged slides around, as necessary to give a better flow to the presentation, so hopefully
it would make more sense to the viewer. I looked at a large variety of different research forms
such as magazine, newspaper, book and internet. I checked my work and felt like I completed the
task given. Overall, I am happy with the level of research conducted.
Bibliography
Amazon Prime, (2016), Available from: https://www.amazon.com/Prime-Video [Accessed 15 June
2016]
Ashwin, A, Merrills, S, Thompson, R, Machin, D. (2008) AS Business Studies, Collins
British Board of Film classification (BBFC), (2016) Available from: www.bbbfc.co.uk [Accessed 15
June 2016]
British Film Industry (BFI), (2016) ‘Films on UK TV’ Available from:
http://www.bfi.org.uk/education-research [Accessed 15 June 2016]
British Interactive Media Association (BIMA), (2016) Available from: www.bima.co.uk [Accessed
15 June 2016]
Broadcaster’s audience research board (BARB), (2016), ‘The impending death of traditional TV’.
Available from: http://www.barb.co.uk [Accessed 15 June 2016]
Broadcasting Entertainment, Cinematograph and Theatre union (BECTU), (2016), Available from:
www.bectu.org.uk [Accessed 15 June 2016]
Cineworld cinemas, (2016) Available from: www.cineworld.co.uk [Accessed 15 June 2016]
Cineworld plc, (2016) ‘strategic report’ Available from: www.cineworldplc.com [Accessed 17 June
2016]
Curtis, S, Warman, M. (21 August 2014), ‘How the web is reshaping TV’, The Telegraph
Jackson, J. (6 August 2015),’Two thirds of UK’s Netflix and Amazon users don’t watch their
original shows’, The Guardian
Motion Picture License Company, (MPLC), (2016), Available from: http://www.themplc.co.uk/
[Accessed 15 June 2016]
Netflix, (2016), ‘Financial Statements’ Available from: www.netflix.com [Accessed 15 June 2016]
Network Solutions, (2016), ‘Adding pages to your site’ Available from:
http://www.networksolutions.com/support [Accessed 15 June 2016]
Ofcom, (2016), ‘research’ Available from: http://stakeholders.ofcom.org.uk/binaries/research/
[Accessed 15 June 2016]
Producers alliance for cinema and television (PACT), (2016), Available from: www.pact.co.uk
[Accessed 15 June 2016]
Sky, (2016), ‘Sky movies’ Available from: www.sky.com [Accessed 15 June 2016]
Statistic Brain Research Institute, (3 April 2016), ‘Netflix statistics’ Available from:
http://www.statisticbrain.com/netflix-statistics/ [Accessed 15 June 2016]
3DCart, (2016), ‘Knowledge Base’ Available from: https://support.3dcart.com/knowledgebase
[Accessed 15 June 2016]
Wikipedia (2016), ‘Cineworld’ Available from: https://en.wikipedia.org/wiki/Cineworld [Accessed
15th June 2016]
Wohlsen, M, (20 October 2014), ‘As online viewing soars, internet TV will soon be the only TV’,
Wired Magazine

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Unit 2 Task 1 Annotations

  • 1. UNIT 2 Communication Skills for Creative Media Production Task 1 Extract information Cineworld Cineworld Strategy This strengthens my idea as Cineworld stated on their website under their ‘strategy’ section that they are looking for opportunities to grow their company. (Cineworld plc) This is therefore useful to quote in my pitch to them, to show that I have looked into their business model and that I have researched them thoroughly. Cineworld plc - Strategic report Customers are booking online to go to the cinema, which means that they have access to an online facility. The article states that booking online has increased by 12%. (Cineworld plc) Therefore they would possibly use the internet to watch films online. Company overview Useful information for target audience: Cineworld had 82.9 million admissions in2014, and revenue of £619.4 million. (Cineworld plc) This shows that they are a healthy, viable business model with a high amount of cinema admissions. This means that they already have a good platform for the films online idea.
  • 2. I wanted to research 2015 figures to see if they had increased or decreased over the year, to see if it was a growing company. I thought that if they were a developing company, then they were more likely to try new ideas. The graphs left and below show £705.8 for 2015, an increase of £86.4 million. This was a good use of information for my ‘cost’ and ‘target audience’ slides as it clearly shows that they are profitable. Cineworld already have the ‘unlimited card’ at £16.90 per month for an unlimited amount of movies to watch at the cinema, so my idea would incorporate this and have the option of unlimited movies at home for the same price of £16.90 per month. I would also have options for ‘Pay per film’ and ‘Films to keep’ with variable options for both. I would also have a combined unlimited cinema and online option at £25.00. I researched the current snacks and drinks revenue that the cinema receives from customers attending the cinema to watch a film. This was crucial to establish how profitable they were; as it was no use starting an online option if the food and drink drastically dropped as a result. Future projections would need to be monitored to determine whether it would affect sales. Research suggests it wouldn’t, as healthy food and drinks revenue at present at £107.2 million in 2015 with a rise of 8.1%.
  • 3. MPLC Film license research to buy or rent films online I researched MPLC about film licenses as I wanted to know about licenses, if I was providing online films for profit. Cineworld already have appropriate licenses in place for their cinema operation. Netflix (BARB) Graph above shows households that watch Netflix, Amazon and Sky’s Now TV. This was beneficial to establish how many households watch each main competitor. Netflix is the main rival with over 5 million households watching TV programmes or films at the end of 2015. Financial statement Netflix, Inc. Segment Information (unaudited) (in thousands) As of / Three Months Ended March 31, June 30, September 30, December 31, 2014 2014 2014 2014 Domestic Streaming Total memberships at end of period 35,674 36,244 37,219 39,114 Paid memberships at end of period 34,377 35,085 36,265 37,698 Revenues $ 798,617 $ 838,225 $ 877,150 $ 917,442 Cost of revenues 517,094 546,223 565,251 573,193
  • 4. Marketing 80,258 64,727 61,045 87,423 Contribution profit 201,265 227,275 250,854 256,826 Contribution margin 25.2% 27.1% 28.6% 28.0% International Streaming Total memberships at end of period 12,683 13,801 15,843 18,277 Paid memberships at end of period 11,755 12,907 14,389 16,778 Revenues $ 267,118 $ 307,461 $ 345,685 $ 387,797 Cost of revenues 245,267 266,697 291,942 350,211 Marketing 56,840 56,036 84,609 116,248 Contribution profit(loss) (34,989) (15,272) (30,866) (78,662) Contribution margin -13.1% -5.0% -8.9% -20.3% Total Streaming Total memberships at end of period 48,357 50,045 53,062 57,391 Paid memberships at end of period 46,132 47,992 50,654 54,476 Revenue $ 1,065,735 $ 1,145,686 $ 1,222,835 $ 1,305,239 Cost of revenues 762,361 812,920 857,193 923,404 Marketing 137,098 120,763 145,654 203,671 Contribution profit(loss) 166,276 212,003 219,988 178,164 Contribution margin 15.6% 18.5% 18.0% 13.6% Didn’t use this data in the end as not detailed enough for my research. Has overall revenue for all countries except USA, but only wanted research mainly for the UK. Although Cineworld would look to forward the online concept globally, this research is not relevant at this moment in time as it cannot be analysed any further than a basis level shown above. It is good to use as an overview at the start of the research to show the size of Netflix in USA and internationally to establish market size for Netflix but more details are needed, so I began to look at other areas of Netflix for a more detailed analysis. BFI This table from BFI shows the top ten films played on Sky Movies in 2014
  • 5. NOW TV £9.99 per month for Sky Movies – good to have movies with no contract Ofcom By age 1609 240 277 319 265 228 280 Information above shows how many people in the UK watch TV or films online at least once a week out of 1609 people surveyed in 2007 and in 2014. I found that 27% of people asked, watch TV or films online at least once a week, with the highest figure at 39% for 16-24 year olds. 12% of over 65 year olds use the internet for this activity and all age groups show an increase since 2007 of between 11 and 25%. I wanted to find out possible audience information by age, but also by socio-economic groups to establish how many people watched TV or films online as this was relevant to my idea. If not many people watched TV or films online, then my idea would not materialise. Group AB is the highest figure at 30% to watch TV or films online at least once a week and group DE is the lowest figure at 22%. 27% of people in the UK watch TV or films online at least once a week 33% watch TV or films less than once a week online. 60% of people in the UK use the internet to watch TV or films online.
  • 6. (Ofcom: page 81 from the media use and attitudes report) Base: All adults aged 16+ who go online at home or elsewhere (1272 in 2013, 1609 in 2014) I wanted to use a graph and found these on the Ofcom website. It clearly shows that since 2005, internet use has increased from 59% to 86%. This is significant, as my idea is all about internet use for Cineworld customers and potential customers. (Ofcom) (Ofcom) This shows a healthy increase in the amount of people that have access to the internet. Therefore if they have access to the internet they have the potential to watch your films online. 60% of 1609 watch programmes or films online compared to 54% in 2013. This is a healthy increase overall of the amount of people that use the internet and I can use this information in my ‘Target Audience’ section. The only negative point about this survey is the number of people that took part in the survey. It represents a very small number of people, so could be seen as bias. Further research would need to be completed to be objective.
  • 7. Statistic Brain Research Institute Netflix statistics Useful information for total number of subscribes to establish how large Netflix is, as a company, but this figure is worldwide and I wanted to know figures for the UK, so I didn’t use this information in the end. Source:StatisticBrainResearch Institute ResearchDate:April 3rd, 2016 Netflix Statistics Data Total number of Netflix subscribers 81,500,000 Total annual Netflix revenue $5,504,000,000 Number of hours spent by Netflix members watching streamed video on hi-speed internet 2 billion hours Total number of Netflix viewers who watch live stream via video game console 50% Percentage that Netflix Snail-Mail will make up of all disc-rental spending 35% Total percent of Netflix members who watch both Television shows and Movies 36% Total percentage of Netflix subscribers who use service via mobile phone 6% Total number of Netflix distribution centres 58 Total percentage of Netflix subscribers who use their computers to stream and watch 42% Total percentage of Netflix subscribers who watch by connecting their computer to their T. V. 14% Netflix beganasa DVD bymail rental service andhasgrown intothe largestonline providerof streamingmovies. Withoriginal serieslike"House of Cards"Netflix hasmovedintothe networkproductionarena. AS Business studies I looked through the AS Business Studies book by Ashwin, Merrills, Thompson and Machin and found on page 31, useful information about promoting a product. I extracted the following:- Consumers are faced with so much choice that it is often the business that ‘shouts the loudest’ about its products that gets noticed. Promotion is essential to: · Increase demand for products · [...] create, enhance or maintain a brand image · Raise awareness, emotion or concern for an issue or product · Maintain, protect or increase market share’ The Guardian An article about how many people in the UK watch films online in The Guardian newspaper.
  • 8. 75% of people told Ofcom in April 2015 that they use online TV service to watch films. Useful information to establish out of all the people in the UK that watch programmes online, 75% watch films, as opposed to other programmes. This is such a high number of potential people to watch Cineworld films, so my idea is a strong one to compete for a share in this market. Ofcom states that Netflix has 4.3 million subscribers in the first quarter of 2015. Amazon had 1.2 million and Sky’s on-demand service had just over ½ million. The Guardian article also states that online TV was worth £317 million in the UK in 2014. This again is useful information to establish how many customers watch programmes online and potentially could watch films online. This is relevant information for my pitch to Cineworld. The Telegraph A newspaper article about how many people watch TV online in The Telegraph. How the web is reshaping TV New services from Sky and the BBC show that the web is creeping into TV more than ever. But what does the future hold? By Sophie Curtis, and Matt Warman 11:20 AM 21 Aug 2014
  • 9. The internet has fundamentally changed the way we watch TV. In the past, the whole family would gather together around a television set, flick through channels and watch a prime time TV show or a football game. But thanks to the web, people now watch TV on their mobile phones, tablets and laptops. Services such as YouTube, iPlayer and Netflix allow viewers to see the programmes they like at a time that is convenient to them, and social media enables discussions to take place around popular shows. A recent survey by Accenture found that 36 per cent of UK consumers are viewing full-length movies and TV shows over the internet on a daily basis, and a further 40 per cent do so weekly. Sky recently redesigned its homepage to put on-demand viewing on an equal footing with live TV, and what could have been a controversial move passed with hardly a flicker of public complaint. In fact, according to Luke Bradley-Jones, Sky’s director of TV products, the company's research says that the tables have now turned, and that change was welcomed by users. "We know customers love the new Homepage as it puts catch-up, box sets and movies at the heart of their TV viewing," he said. The TiVo platform, widely used in America and offered on Virgin Media in the UK, is the only popular service to have attempted such functions before. So far, however, the internet has had very little impact on the way TV is made. The web is primarily used as a distribution platform for traditional TV programmes that are designed to be watched in a traditional fashion. This is perhaps unsurprising, given that video streaming is still a relatively new phenomenon. But just as TV began as radio with pictures and evolved from there, broadcasters and media companies are now able to explore the creative opportunities that the internet presents – particularly when it comes to providing a more interactive experience for viewers. The advantage of a broadcasting system built on the internet is that programme makers are not limited by capacity (which is not the case with traditional broadcast), and also that they're freed from the customary schedule. This means they can include reams of data in addition to video and audio, and guide viewers to content they're more likely to enjoy. There is, after all, no obvious connection between The Great British Bake Off and the Ten O'Clock News. "At the moment, we’re just watching television on the web, and we’re not really taking advantage of the fact that we’re on this amazing platform where everyone is connected to everyone else," said Phil Tudor, principal engineer at the BBC's research and development division… "But we see that as the end of the beginning. We've got people to the corner, and now it's about getting people to look around the corner, and see there’s another leg in the journey. For me, we’re just at the beginning of that next leg." For now, much of the industry is still focused on the 'webification' of existing services: while Netflix and iPlayer are eager to suggest new ideas, integrating that into existing interfaces is difficult, especially when every TV manufacturer's electronic program guide (EPG) is different.
  • 10. Sky's latest upgrade includes suggestions for a customer's next programme, along with the idea that the option to record a show should carry over across series. Both are simple, web-enabled changes, but they're integrated into the broadcaster's main services in a way that is not possible elsewhere. Customers, Sky says, will find new shows that they might enjoy, based on recordings or downloads in their planner. “Over half of our 10m TV customers have connected their Sky+ boxes to the internet so they can get services like TV Box Sets, resulting in millions of on demand sessions," says Bradley Jones. "This is due to even more great content being made available on demand, combined with a continued appetite from Sky customers to take control of when and where they watch TV. There was a fourfold increase in box set viewing in the last three months, with over 86 million box set downloads. And our research shows people are generally watching two to three box set episodes per sitting.” The cumulative effect of these new ways of filming and distributing TV shows is that the web is not only becoming more deeply integrated with broadcasting, it is beginning to fundamentally reshape what we watch – and how we find it in the first place. 3DCart How to set up a webpage These examples show how to add a webpage and menu link to an existing website. This would be useful if I were to create the webpage for Cineworld cinemas as it gives all the information I would need.
  • 11. Network Solutions How to set up a webpage It was very worthwhile to research, to be aware of what it entails to create a webpage and to envisage how much time it would take. I think this was a good idea to do this, so that I could appear more professional in front of my client. BARB Statistical data from BARB about ‘The impending death of traditional TV’ 1/4 of UK households have a subscription video on demand service – that is a lot of people that could potentially watch recent films online. The impendingdeathof traditionalTV
  • 12. The picture we gleanfromthe EstablishmentSurveydoesnotsupportthe more evangelical rhetoricaboutthe evolutionof SVODheraldingthe endtomainstreamTV aswe know it.The EstablishmentSurveyfocusesonclaimed uptake of SVODand so doesnottell usabout the viewinghabitsof SVODhomes.Butitdoestell usaboutthe types of householdsthatsubscribe,andwe candraw some inferencesabouthow viewerssee theirpurchase of anSVOD service. The data suggestthat SVODappealsto householdswhoalreadyconsumeagreatdeal of TV. The chart belowshows that 55% of SVODhouseholdsare large (three ormore occupants) comparedwith35% of the overall household population. SVODhomesalsoskewyoungerandmore up-marketthanthe average:40% of the occupantsof SVOD homesare aged24 or under, comparedto30% inthe populationasa whole; 64% of SVODhomeshave an ABC1 social grade, comparedto the national average of 51%. The bias towardshomeswhichalreadyhave payTV servicesis clearwhenwe lookatthe penetrationof SVOD servicesbyprimaryplatform.Netflix andAmazonVideohomesare significantlymore likelytobe cable orSky subscriptionhomesthanaverage;thisisnottrue forNow TV, whichismarketedatterrestrial viewers.Penetrationin cable and YouViewhomesisparticularlyhighbecauseof the dealsVirginMedia,BTandTalkTalkhave made with
  • 13. Netflix;30%of cable homesand31% of YouView homestake Netflix comparedto13% of terrestrial onlyhouseholds. One factor that contributestothisdisparityisthe lowerbroadbandtake-uprate interrestrial onlyhouseholds. Broadbandtake-upinYouView,Skyandcable householdsiswell over90%,while interrestrial-onlyhomesitisonly 71%. Homesneedbroadbandtouse SVOD. The overlapbetweenSVODservicesandverysimilartraditional servicesisparticularlystarkwhenwe compare SVOD penetrationinpayTV householdswhichhave SkyMovies;aservice whichisusuallythoughtof asa directcompetitor to Netflix andAmazonVideo. Inreality,itislessacompetitorthana companion:SVODpenetrationgoesupfrom 35% incable homesto 43% withincable homesthatalreadyhave aSky Moviessubscription. The picture is clear: SVODhomesare not swappingouttheirtraditional TV forSVOD,theyare usingSVODservicesto getevenmore of what theyalreadyhave. The data from the EstablishmentSurveyshowthatSVODservicesare significantlymore popularinlargerhouseholds withchildren.However,itdoesnotsupportthe commonlyexpressedview thatanentire generationof youngpeople has more or lessabandonedtraditional TV infavourof binge viewingonNetflix orAmazonVideo.The nextchart showsthe proportionof the populationwithindifferentage bandswhichhasaccess to SVODservices. SVODtake-up ishighestamongstchildrenandyoungadults,butitisstill the case that lessthan50% of 16-24 year-oldshasaccess to an SVODservice.Andforall the hype that childrenare gluedtoNetflix,the realityisthatonly three intenchildren live ina householdthatsubscribestothisservice. The take-upfiguresinthe age groupchart appearoverall tobe slightlyhigherthanthe take-upfiguresbyplatform; thisisbecause the platformfiguresare byhousehold,andthe age group figuresare forindividuals.SVODisskewed towardslargerhouseholds;since there are more people inSVODhomes,SVODtake-upbyindividualsishigherthan it isby household.
  • 14. Notall SVODservicesare createdequal The EstablishmentSurveydata underlineNetflix’sdominance amongSVODserviceswhenwe lookatthe proportion of userswhouse onlyone service.A muchhigherproportionof AmazonVideoandNow TV householdsalsohave Netflix thanthe otherwayround.82% of Netflix householdssubscribe toonlyone SVODservice,comparedwith49% for NowTV and 54% for AmazonVideo. Thispointsto a higherlevel of service satisfactionwithNetflix.Itmayalsobe the case that the bundlingof Amazon VideowithAmazonPrime meansthatsome Amazonusersare lessdirectlycommittedtothe service,since their primarymotivationisthe otherbenefitsof AmazonPrime ratherthanthe videoservice. Amazonnothas dedicated Wired Magazine Magazine article taken from the October 2014 ‘Wired’ magazine about how internet TV and films is replacing the television set. AUT HOR: MARCUS W OHLSEN. MARCUS W OHLSEN BUSINESS DAT E OF PUBLICAT ION: 20.10.14 AS ONLINE VIEWING SOARS, INTERNET TV WILL SOON BE THE ONLY TV
  • 15. Promising amount of people MORE PEOPLE ARE watching TV online than ever—a lot more. Viewers may not be cutting the cable cord altogether, but growth in the number who want to watch TV over a different set of pipes is surging, according to a new report from Adobe. If anyone was still wondering why HBO and CBS plan to offer an online-only option, the trend is clear: the internet is where people want to watch. In more and more homes, online TV isn’t a geeky novelty, a sidelight to the traditional version. It’s just what TV looks like now. Adobe is in a position to know because its software runs the platform that nearly all US cable customers use to log into the online versions of their subscriptions, according to the company. Researchers tracked 165 online video views and 1.53 billion logins over a year, and they found that total TV viewing over the internet grew by 388 percent in mid-2014 compared to the same time a year earlier—a near-quintupling. And the increase is more than just a few diehards binge-watching: the number of unique viewers well more than doubled, growing 146 percent year-over-year. On the increase – good sign for idea Eventually cable will follow bunny ears into the basement of dead technology, and online TV will be called something else: plain old TV. According to analyst Tamara Gaffney, three factors are drove this growth: more apps and sites for watching, more content to watch on those apps and sites, and the World Cup. Sports act as kind of “appetizer” whetting viewers’ appetites for the flexibility and breadth of online TV, Gaffney says. The World Cup was an especially strong lure because the internet was the only way to watch so many games that traditional TV lacked the bandwidth to show. But Gaffney said once viewers came for sports, they stayed for everything else. “Households generally connect because of sports,” she says. “But then when they start to use online television, they start to branch out.” Back to the Big Screen Encouraging that nearly 5 movies a month are watched – idea viable According to Adobe, viewers have branched out so much that, for the first time, viewers watched more movies online than sports. The average was 4.5 movies per month, Adobe says, versus two a year ago. Viewing of “episodic television” over the internet also saw a sharp increase. The jump is all the more remarkable since Adobe’s survey doesn’t include the main streaming services: Netflix, Amazon Prime, and Hulu. In other words, many people still paying for cable are less interested in watching TV in the cable way and more in the way Netflix has led viewers to come to expect. “When you want to really binge-view something you didn’t know you wanted to watch until the season was over, you’re going to turn to the online option,” Gaffney says. The turn toward online TV, however, hasn’t entirely meant a turn away from the television itself. In fact, the gadgets that showed the greatest increase in their share of use for internet-TV watching were gaming consoles and over-the-top devices such as Apple TV and Roku. Where a year ago they accounted for just 3 percent of online TV viewing, they now account for 10 percent. These devices all pipe TV from the internet to the big screen, and the one thing viewers are still most eager to watch there is sports. “During the Olympics and World Cup, people wanted to watch on the big screens in their living room,” Gaffney says.
  • 16. BroadcastBottoms Out But unlike traditional TV, the appeal of the online version is that it doesn’t require viewers to commit to a single piece of hardware. More than half (51 percent) of all online TV viewing happens on iOS apps, according to Adobe’s figures. And Gaffney believes the iPhone 6 and 6 Plus’ larger screens will only cement Apple’s place as the platform of choice for online TV. Apple’s timing appears to be good as smartphones, driven by the embrace of phablets, start to surpass tablets as the online video-viewing device of choice, according to Adobe’s findings. Because the Adobe report covers TV-watching by viewers who are paying for cable, it’s hard to read the results as a sign that more cord-cutting is coming. But getting viewers habituated to the internet way of watching TV could hasten a less aggregated future, says Gaffney, one where customers may prefer the more personalized service of an HBO-only login, for example, versus one for their entire cable package. (This is what my idea is offering) The big loser would seem to be broadcast TV, since the traditional way the broadcast networks spread the news about their new shows is on their networks. For people watching TV online, those are ads they’ll never see. What they’re more likely to see is chatter on social media—if a new show generates enough buzz, wannabe viewers can track down old episodes online and binge-watch to catch up. More and more, this is the way TV is now, and there’s no reason the trend will stop. Eventually cable will follow bunny ears into the basement of dead technology, and online TV will be called something else: plain old TV. I researchedthe following companiesbelow:-  3DCart  Amazon Prime  AS Business Studies  British Board of Film classification (BBFC)  British Film Industry (BFI)  British Interactive Media Association (BIMA)  Broadcaster’s Audience Research Board (BARB)  Broadcasting Entertainment, Cinematograph and Theatre union (BECTU)  Cineworld  Motion Picture Licence Company (MPLC)  Netflix  Network Solutions  Now TV  Ofcom  Producers alliance for cinema and television (PACT)  Sky Movies  Statistic Brain Research Institute  The Telegraph  The Guardian  Wikipedia  Wired magazine Recent Films Online I wanted to choose a media idea that I would use as part of my daily life and I thought that if I would use it, then other people would want to use it too. I wanted to use Cineworld as they are a big, multinational company. My idea was to have films that have just been released at the cinema, available for consumers to watch at home. I believe this is an easy idea for Cineworld as they already have a website, so all it entails is an extra drop down menu, which leads to another
  • 17. webpage showing all the films the consumer can watch online (which would be the same as what is showing in the cinema), along with all the prices. I would keep the price for the online card the same as the unlimited card (this card is used for unlimited access to the cinemas) of £16.90 per month, to avoid confusion. If consumers wanted to have unlimited access to the cinema and unlimited online use, then a combined card could be purchased for £25 per month. The use of up- to-date films online would give a distinct advantage over the other online competitors because none of them have recent films. The most recent films are approximately one year old or more through Amazon, Now TV and Sky Movies. Netflix do have a few 2016 releases (7) which are the less popular films from horror and rom-com genres. I decided to break the research into sections to ensure that I covered all the areas, which were:-  Cineworld (Client: History, facts, facilities, their growth, market strength, strategies)  Internet - as my idea was based around watching films online (who uses the internet and how often and what the films online industry is worth)  Target Audience (How many people go to the cinema, who watches TV and films online and how often)  Competitors (Netflix, Amazon Prime, Sky Movies, Now TV)  Licenses  Skills, equipment, marketing, cost, Revenue, USP, future requirements  Future projections (how much do audiences currently spend on admissions and food/drink and would this be affected by films online)  Website design  Ofcom  Research Trade Unions & Associations  British Board of Film classification (BBFC) I obtained my information through the internet, a book, wired magazine, The Guardian and The Telegraph newspapers on Wednesday 15th June and Friday 17th June. My method was skim- reading, scanning and searching for specific words. I extracted, highlighted, annotated and copy and pasted relevant information, as seen above. Firstly, I researched Cineworld as this was the company that I was pitching my idea too. I found information on their history, current facts about their company, their views for the future and how they fared in the market place. I also wanted to see how strong their admissions, food and drink were because if they were a small company and the takings from admissions, food and drink only just covered their outgoings, then it might make a difference between success and failure for the Company. I discovered that Cineworld was a large company with very strong admissions of £93.6 million in 2015 and an increase of £86.4 million. Their financial status improved year on year. They have up-to-date films but limited online facilities. To have recent films online is a good way of moving this company into today’s market and I believe it would be strong competition for Netflix, Sky Movies, Amazon Prime and Now TV. My idea is online based so I wanted to research how many people have access to the internet, how many people watch programmes and films online through a survey, how many people watch TV and films through its competitors and how many hours do people spend on the internet per week. I also wanted to research figures by age, socio-economic groups and previous years. I thought this would give me a good idea of how many people watch programmes and films online and out of those, how many were likely to watch online. As I think that the internet is the way forward in today’s society, I do not think it would disadvantage Cineworld if it took this idea forward. It would not cost very much to update their website to incorporate the online film idea, because they already have the lists, prices, pictures and licenses. I also wanted to research all the competitors as my idea would not work if the market place was flooded with companies offering an online film service already. I discovered that four companies
  • 18. offered films online, which were Netflix, Amazon Prime, Sky Movies and Now TV. They all offered films up to 2015, except Netflix had seven less popular 2016 films. I also researched the price range to establish a good price to set for viewing recent films. The prices were on average £4.45 per film for Amazon Prime or £79 per year (£6.83 per month) and £5.99 - £7.49 for Netflix, £38 to £53 per month for Sky Movies and £9.99 for Now TV. Netflix overall was the cheapest from £5.99 but looking at all their latest releases, which consisted of 74 new released added, when researched on 15 June 2016; 30 were TV programmes, 7 were 2016, 27 were 2015 and 10 were older. Out of all the 7 in 2016 and most in 2015 they consisted of the least popular films at the cinema. There were mostly in the rom-com or horror genre. My idea would consist of all the current films for people to watch, so £16.90 per month for recent films online, the same as Cineworlds unlimited admission card, seems like a logical price, but one that could be confirmed by Cineworld themselves. Overall my idea is to have an online film service and my pricing is a suggested price – Cineworld would have the ultimate decision in how they wanted to cost their films. I researched Trade Unions & Associations but they were not relevant in my research, so I disregarded. I had looked at Producers alliance for cinema and television (PACT), Broadcasting Entertainment, Cinematograph and Theatre union (BECTU) and the British Interactive Media Association (BIMA). I had also researched the British Board of Film classification (BBFC) but again they were not relevant to my research as they were targeting employees within the media industry and not consumers with any problems. I spellchecked and proof-read all my work carefully looking for spelling mistakes, punctuation, correct grammar, structure and used the thesaurus. Conclusion To conclude, I highlighted all the key areas to research by breaking each area down and trying to think about it from a logical point of view. I then researched each area, trying to get an unbiased view and enough information on each area to understand it. Once I felt I had researched each area, I then formed a rough PowerPoint in note form. I then added pictures, more/less information and rearranged slides around, as necessary to give a better flow to the presentation, so hopefully it would make more sense to the viewer. I looked at a large variety of different research forms such as magazine, newspaper, book and internet. I checked my work and felt like I completed the task given. Overall, I am happy with the level of research conducted. Bibliography Amazon Prime, (2016), Available from: https://www.amazon.com/Prime-Video [Accessed 15 June 2016] Ashwin, A, Merrills, S, Thompson, R, Machin, D. (2008) AS Business Studies, Collins British Board of Film classification (BBFC), (2016) Available from: www.bbbfc.co.uk [Accessed 15 June 2016] British Film Industry (BFI), (2016) ‘Films on UK TV’ Available from: http://www.bfi.org.uk/education-research [Accessed 15 June 2016] British Interactive Media Association (BIMA), (2016) Available from: www.bima.co.uk [Accessed 15 June 2016] Broadcaster’s audience research board (BARB), (2016), ‘The impending death of traditional TV’. Available from: http://www.barb.co.uk [Accessed 15 June 2016]
  • 19. Broadcasting Entertainment, Cinematograph and Theatre union (BECTU), (2016), Available from: www.bectu.org.uk [Accessed 15 June 2016] Cineworld cinemas, (2016) Available from: www.cineworld.co.uk [Accessed 15 June 2016] Cineworld plc, (2016) ‘strategic report’ Available from: www.cineworldplc.com [Accessed 17 June 2016] Curtis, S, Warman, M. (21 August 2014), ‘How the web is reshaping TV’, The Telegraph Jackson, J. (6 August 2015),’Two thirds of UK’s Netflix and Amazon users don’t watch their original shows’, The Guardian Motion Picture License Company, (MPLC), (2016), Available from: http://www.themplc.co.uk/ [Accessed 15 June 2016] Netflix, (2016), ‘Financial Statements’ Available from: www.netflix.com [Accessed 15 June 2016] Network Solutions, (2016), ‘Adding pages to your site’ Available from: http://www.networksolutions.com/support [Accessed 15 June 2016] Ofcom, (2016), ‘research’ Available from: http://stakeholders.ofcom.org.uk/binaries/research/ [Accessed 15 June 2016] Producers alliance for cinema and television (PACT), (2016), Available from: www.pact.co.uk [Accessed 15 June 2016] Sky, (2016), ‘Sky movies’ Available from: www.sky.com [Accessed 15 June 2016] Statistic Brain Research Institute, (3 April 2016), ‘Netflix statistics’ Available from: http://www.statisticbrain.com/netflix-statistics/ [Accessed 15 June 2016] 3DCart, (2016), ‘Knowledge Base’ Available from: https://support.3dcart.com/knowledgebase [Accessed 15 June 2016] Wikipedia (2016), ‘Cineworld’ Available from: https://en.wikipedia.org/wiki/Cineworld [Accessed 15th June 2016] Wohlsen, M, (20 October 2014), ‘As online viewing soars, internet TV will soon be the only TV’, Wired Magazine