Entertainment unions alternative

With the current economy and the SAG conflict, several business strategies are proving to be less sound than initially thought. While some actors were able to command up-front fees of multiple millions of dollars, that is no longer the case since studios aren't tightening their budgets.

To help curtail the rising costs of actors, writers, directors and the like, I'd like to propose a new hiring strategy: salaries. This will do away with unions, as there won't be a need for the people to have voices (they'll already be able to talk with HR/representation) and possibly get much needed benefits.

It's something that's worked very well in the business world for years, so there's no reason why it shouldn't work in the entertainment industry. As an example, let's look at the video game industry (granted, it depends on where you work). Odds are, if you work at a publisher or publisher-owned developer, you have a salary and not a project-based income. With this, you have the comfort of steady work and benefits, while still being able to work on multiple projects.

Going back to actors, directors, writers and the like, if they are salaried, they can act as pool of talent, lending their abilities to multiple projects, be they TV shows or movies. While some of the more top-dollar players may be opposed to this, I'm sure there are a number of less-demanding, but still very talented people that wouldn't mind this.

Also, to put it one way, for those who really enjoy money, there should easily be a way to factor in residuals into the salary (e.g. bonuses). I'm guessing that Pixar probably has a strategy similar to what I'm thinking of, as most of the players should be salaried by Pixar, and since their films are highly profitable, they should be getting amply compensated. But then again, this is all speculation.

In any case, thanks to SAG's predicament, perhaps it's time to rethink unions in the entertainment industry.

Soundtrack pricing strategy

In an effort to add extra value to consumers, and to help sell more soundtracks, with the rise of digital distribution consumers should have the option to a special "deal" wherein when they buy a product, such as a DVD or video game, they can purchase a digital version of the soundtrack for only $5. This way, it's cheap enough for people to pick up on a whim, even for those who aren't normally into soundtracks. It also adds value to the initial purchase for those who feel they are entitled to everything contained within the purchase.

A good soundtrack will enhance the initial experience while still being able to stand on its own, and a strategy like this will hopefully increase sales and support. Not to mention, with digital distribution, production costs are very minor, limited mostly to the bandwidth of the purchasing website.

Movie theater pricing strategy 2

A second option that movie theaters should consider is the "All Day Pass" where a theater goer will pay $20 for all the movies they can watch in a day. Sure, it may screw up seating and attendance, but it would provide a good value for consumers and make it more legitimate to hop between movies.

One method to counteract the seating would be for the consumer to pick out their movies in advance, and then just issue out individual tickets for those movies.

Another benefit about the viewer being at the theater all day is that it can turn into a fun adventure like a trip to a park. For example, if a person is at a place all day, odds are they'll get hungry and want to eat something without leaving. Therefor, introduce some higher-end meals in the theaters (or have a special deal with McDonalds, Burger King, Arby's, Starbucks, etc.) to have mini-versions in theaters.

With the right minds, this strategy can be done in a logical way that is beneficial for both the consumer and the venue.

Movie theater pricing strategy 1

Like almost any consumable product, movie theaters should change their pricing policy to something more akin to an early adopters with gradual decline strategy. With this idea, a person who really wants to see a movie will play a premium price (e.g. $10, nothing too expensive), then, after two weeks (would say longer, but films don't last as long in theaters), the price drops to $5. It would be this way for every film. While this is a pipe dream, below are some of the benefits and disadvantages of this strategy:

Advantage 1: More money for the theaters. With lower prices, comes more people. With more people, comes more money/spending, meaning more seats will be full over a longer period of time, and more concessions will be bought.

Advantage 2: Better value for the consumer. If a person really wants to see a film and be able to talk about it with their friends, they have the option to see it at a higher price. However, if they're patient and don't care as much, they wait a few weeks for the price to go down. They may even see multiple movies since it's so cheap. On the other hand, if a person did go see the movie right away and would like to see it again, they now have the option to see it a second time for a much more reasonable price/value.

Disadvantage 1: Less money for the studios. I'll be honest, I have no idea about the details for pricing strategies between studios and theaters (I'm guessing it's all the studio for the first week or two, then a split for a few weeks, and eventually all the theater). This would hurt the sales for the studio, as they wouldn't make as much money. But at the same time, a lower price would increase people's incentives to go, so the money may possibly even out.

Bottom line: Movie theaters should not be a way to milk the most of the few (aka 90-10, where 90% of business comes from 10% of the market). Movie theaters should be all about mass consumerism, where getting more people is the goal, not necessarily getting the most money out of the few people that do come. If you look at trends, where ticket prices become higher and attendance becomes lower, you would think that studios and theaters would see a connection, but they don't. I pretty much guarantee you that were a theater to drop it's prices while still providing a nice environment (stadium seating, good sound, nice neighborhood), it would be one of the most popular places.