Impact of the Internet on Entertainment Industry – Marketing Mix
The Entertainment industry includes a wide range of activities such as movies, TV, games, gambling and music (Blais, Craig, Pepler & Connolly 2008; Safrath 2011). The table below shows that using the internet for entertainment purposes has increased by a massive 20% from 2015 to 2017 in Australia and is one of the most popular uses of the internet (Australian Bureau of Statistics 2018).
The internet and technological advances have changed the very nature of entertainment products and services. One big shift has been from watching movies in a cinema and listening to live music to watching shows and movies on Netflix and listening to music on Spotify. Games are another thing that has been completely changed, while bored games and card games have a unique value the adoption of online gaming such as Xbox and PlayStation have boomed. This reflects the needs and want from the eyes of the modern day customers (Chaffey & Ellis-Chadwick 2019). Wii sports is a game that has adapted elements for physical games such as bowling and tennis.
One way that promotion has significantly increased with the adoption of technology is P2P networking (aka Peer to Peer) which is the ability for someone to share digital information over the internet (Rupp & Smith 2004). This is an important version of “word of mouth” promotion. It is also much easier to segment different target groups and focus advertising strategies to be more customised (Nezamabad 2011).
With the average cost of a movie ticket at roughly $15.50 and the average cost of Netflix for a whole MONTH is $14 it’s not hard to wonder why people are going online (Dendy 2019; Netflix 2019). Online services make it possible to reduce costs, they don’t need to spend money on a physical space – this also means there is no maximum capacity for consumers. They also are able to reduce upkeep costs such as electricity, cleaning and staffing per customer. In addition, many services such as Netflix and Spotify offer a deal of not having to pay for the first month this is a very good tactic to persuade people to try out the product or service (Netflix 2019).
A wonderful thing about the impact of digital technology and the internet is that it can be accessed from anywhere! So, no need to hide all those snacks in your bag… People seem to enjoy being able engage with entertainment services in a more mobile way. For example, you are on the bus with your headphones listening to Taylor Swifts new album on your phone. Or you are waiting for class or perhaps on break from work and you can play a quick game of Angry Birds – how convenient!
Overall less manpower is needed to manage customers online for example most questions asked by consumers are answered in the frequently asked question section on the websites. A good thing about the way customers are handle is that the correct information is being conveyed in a unified way.
One thing made possible by the internet and technology in the entertainment industry is that the product or service can be accessed almost immediately, this gives customers instant gratification. Another important positive of the online process is that these sites are designed to be able to customise suggestions or recommendations based on location and previously viewed content.
Most online entertainment sites have a larger variety of things to watch, listen or play with as appose to old school entertainment options – for example there are limited movies to watch at the cinema. This growth in digital context is attributed largely to advances in IT (Nezamabad 2011). A downside of this shift towards digital entertainment could be that it doesn’t involve any human interactions making the experience less enjoyable. However, these entertainment sites can classify, recommend and group movies or songs together which adds to the online experience.
Suggested Social Media Tactics for Online Sports Equipment
- Build your Brand
It is very important to build a distinct brand and build that brand connection with customers – this will impact how well advertising will go (Weiger, Hammerschmidt & Wetzel 2018). In addition because online products are so available it is important to have a distinct brand so that consumers can both develop loyalty and also trust in that brand (Baltes 2016).
- Gain Traffic
An important social media tactic for an online store that is just starting out is to gain reach to potential customers. This will mean trying to target the right group. For fitness material a good social media site to use might be Instagram as this has a lot of health conscious content, in addition the use of hashtags may help in generating traffic after initial sales have taken place. It is important to follow online trends and market in a way that reflects social media content (Chaffey & Ellis-Chadwick 2019).
Partnership with an Influencer
This is important as without any attraction to your site no matter how good the products are there are no customers in your store. This is relying on the ‘Law of the Few’ which suggests that the adoption of a product or service is reliant on word of mouth from influential people (Chaffey & Ellis-Chadwick 2019). An good point of contact may be inspirational fitness icons, celebrities or models.
A social media promotion may include competitions or prize giveaways that involve potential consumers sharing or posting some content that relates to the business – this will have 2 effects both build excitement, good brand reputation and also be a good source of reaching new potential consumers by spreading the message.
Abs.gov.au. (2018). Australian Bureau of Statistics. [online] Available at: https://www.abs.gov.au/ausstats/abs@.nsf/mf/8146.0 [Accessed 12 Sep. 2019].
Baltes, L. (2016). Digital marketing mix specific to the IT Field. Economic Sciences, 9(1).
Blais, J., Craig, W., Pepler, D. and Connolly, J. (2007). Adolescents Online: The Importance of Internet Activity Choices to Salient Relationships. Journal of Youth and Adolescence, [online] 37(5), pp.522-536. Available at: https://link.springer.com/article/10.1007/s10964-007-9262-7.
Chaffey, D. and Ellis-Chadwick, F. (2019). Digital marketing. New York: Pearson Education Limited.
Dendy. (2019). Tickets. [online] Available at: https://www.dendy.com.au/tickets/?c=0001&s=90179 [Accessed 12 Sep. 2019].
Netflix. (2019). Netflix. [online] Available at: https://www.netflix.com/browse [Accessed 12 Sep. 2019].
Nezamabad, M. (2011). The Impact and Benefits of Internet on Marketing Mix. Australian Journal of Basic and Applied Sciences, [online] 5(9). Available at: https://pdfs.semanticscholar.org/03a1/1ad9bf37e94a43e8d64411e769eda33e04bf.pdf?_ga=2.183046565.2079334858.1568283745-1821388057.1568283745 [Accessed 12 Sep. 2019].
Pike, M. (2017). Online gallery captures the VERY dubious knock-offs of big brands. [online] Mail Online. Available at: https://www.dailymail.co.uk/femail/article-5108335/Funny-pictures-knock-products-big-brands.html [Accessed 12 Sep. 2019].
Rupp, W. and Smith, A. (2004). Exploring the impacts of P2P networks on the entertainment industry. Information Management & Computer Security, [online] 12(1), pp.102-116. Available at: https://www.emerald.com/insight/content/doi/10.1108/09685220410518865/full/html.
Safrath, B. (2011). How Improvements in Technology Have Affected the Entertainment Industry, [online] 26. Available at: https://www.tourolaw.edu/Academics/uploads/pdfs/Safrath_WritersStrike_JL_Final.pdf [Accessed 12 Sep. 2019].
Waldon, R. (2018). The flight of the influencer… nothing to declare? Influencer marketing. [online] Richmond Towers Communications. Available at: https://rtc.london/the-flight-of-the-influencer-nothing-to-declare/ [Accessed 12 Sep. 2019].
Weiger, W., Hammerschmidt, M. and Wetzel, H. (2018). Don’t You Dare Push Me: How Persuasive Social Media Tactics Shape Customer Engagement. Journal of the Association for Consumer Research, [online] 3(3), pp.364-378. Available at: http://web.b.ebscohost.com/ehost/detail/detail?vid=1&sid=92ed9c44-3784-4a29-abb3-07f4b40ea5e7%40pdc-v-sessmgr03&bdata=#AN=131394263&db=bsu.