The world has marvelled at motion pictures ever since their introduction over 100 years ago. By now we are all familiar with the story of movie goers fleeing the very earliest cinemas in fear at the sight of a black and white train, silently heading towards the audience as if about the smash through the screen. Vintage Hollywood awash with glamour, celebrity and money despite the absence of sound and colour. Ever since, the film industry has adapted and thrived following many major revolutions. For example, the tumultuous introductions of first, the talkies and then many years later, Technicolor sent shock waves through this roaring trade.

In recent years a revolution of a different kind has been occurring in film, one that has affected all aspects of the movie making machine. The internet - as with music, has - permeated every level of the film industry, from the stories that are created, through to production and particularly with regards to marketing and distribution.

Microsoft Advertising in February 2008 together with an array of marketers connected to the film industry - 20th Century Fox, Universal Pictures, BSkyB and Odeon amongst others - discussed the extent of how the internet has impacted upon the film marketing and distribution process. The discussion also had the objective of ensuring the UK film marketing industry remains at the forefront of digital creativity and excellence.

This report aims to pick out the key themes from the event, whilst taking a wider look at the achievements in film marketing online and possible impediments to continued growth of the sector.

It is a great time for the film industry. The Motion Picture Association of America recently reported that the worldwide box office reached an all-time high of $26.7 billion in 2007. The MPAA also announced that studios continued to spend more on internet advertising in 2007 - 4.4% of their ad budgets to be precise, a share that has increased threefold in just four years.

The overall consensus from those working at the heart of the movie marketing business is that the internet’s impact on film can not be underestimated. Whilst marketers and filmmakers are embracing the extensive channels the internet offers, the industry continues to be in a period of flux. The traditional marketing and distribution model has been changed forever and with many theatrical releases readily available illegally online, the threat of piracy looms large.

Also, as the technological advancements in picture and sound quality mean that ‘staying in is the new going out’, the home entertainment market has risen to accompany theatrical as primary concerns of the studios. With the important DVD retail and satellite television markets factored in, the lifetime value of a film has increased and online is proving itself a more than capable ally.

Significant education is needed, however, in order for brands to learn what is and is not possible with the medium. Every film is different and needs to be marketed accordingly. For every Cloverfield and Dark Knight - high interest films where the online campaign is considered even at the concept stage and specific assets being produced accordingly – there is a smaller film, where the awareness-raising task is that much greater and the delivery of assets might be that much later. These are all challenges facing the industry and will be assessed in more detail throughout this report.

As our gathered experts observed, our knowledge of the new consumer behaviour in a digital world continues to grow, as does our understanding of the capabilities of the medium and how it can work effectively alongside other channels. The proliferation of internet technology means that the film industry is in the midst of a revolution as great as those of the introduction of sound and colour. A revolution that promises a bright future for this great, old, business.


[back to top]