2. What companies were involved? What is the ownership information for the companies involved
1) There are two main companies involved in this buying process which is, The Walt Disney company and
Marvel Entertainment. Disney is a parent company owning all the small Disney companies, like Disney
nature Pixar and so on. It is also a conglomerate putting together many different companies and
organizations to create one big successful company. Marvel has also got a parent company which is
Marvel entertainment and now The Walt Disney company since it was recently bought for 4 billion. Its
also a subsidiary company being less important the the main company but the same as the others that
Is involved in Disney for example, Disney nature, Disney animations and the Muppets.
2) These two companies (Disney and Marvel) are very well known and popular for many different things. For
example Marvel is very famous for its Super Hero comics like the hulk, captain America and iron man and
many more. Some of these comics have become very popular and been made into feature films using A list
actors. For example iron man has been made into a feature film staring Robert Downey junior. Another famous
and popular film made and inspired by marvel was the avengers, combining and using the hero's different
powers and villains to create and ultimate Hero team. Which also stars A list celebrities. Disney is very well
known across the world for many different little things like there TV programs, animations, theme parks,
movies, series, channels and so on. Many of there famous films are animations made, created and produced
by Disney Pixar for example finding Nemo, the Disney princess stories like Arial, sleeping beauty and snow
white. These productions have become big around the word creating characters like Mickey mouse as a well
know Disney character which is recognized and followed by millions nation wide.
What are the companies involved famous for? i.e. what are their biggest grossing films or why would
people know who they are?
http://en.wikipedia.org/wiki/Marvel_Comics
3) when and why did the deal take place?
The main reason for this deal was for a mixture of cash and stock, Marvel which was known and a very popular
and famous comic book company. The company filed for bankruptcy in 1996 under heavy debts and it faced a very
heavy downfall in comic book sales which came around in 1998. This created some trouble In the company which
leaded to the selling of marvel. The buyout was supposed to have finished by the end of that year which was
2009.
3. http://www.theguardian.com/business/2009/aug/31/disney-
marvel-buy-out
4) How has the deal increased the power or influence of the company within the film industry – is there
any evidence of a monopoly or oligopoly – if so please explain?
When the deal took place, Disney became more powerful and the influence that it had on the film industry
shot up. Disney was proven to be targeting more of a younger female audience because of the Disney
princess’s and Hannah Montana. When buying Marvel and combining the characters with the other Disney
characters created more of an interested to young males, which would create more of a profit and income to
theme parks and merchandise to a new audience being targeted. It also brought together new ages and
took down barriers that there was with Disney and other audiences. The Walt Disney company which is the
main parent company is running all smaller companies which is involved in Disney which now includes
Marvel.
5)What do you think the impact will be on the other major film companies?
I think there will be a big impact on other major film complains, due to two very popular and
mainstream companies coming together to create something that will be attractive to both genders
and also be appealing to different age groups then just a younger female audience. This will mean a lot
of interest which also includes more income for the company, creating less interest in other film
companies.
6) What are the key issues with this ownership deal? find at least 3 issues- this will require you to research.
An issue that still needs to be resolved with the buying of marvel is that Disney does have full
ownership of Iron man but not of spider man and the fantastic 4 or X men and other huge
comics in the marvel company. Also a lot of movies and sequels are in production stage,
because of the selling of Marvel, the production of the feature films might become slow or not
finish, which would be disastrous for many fans waiting to see them. Another is that scripts
and other comics might not be at the same standard of the comics that have been created by
marvel, they could be seen as water down super hero's due the new writers that are hired.
4. 6) summarize what you have learnt about how ownership practices work within the film industry.
During my research, I found that Disney is a parent company that buys smaller companies to add
to there wide range of Disney movies and animations. This shows Disney is trying to be a
monopoly, because it is a bigger company running and overpowering smaller companies. Also
both of theses companies in the deal are having a certain amount of income and Marvel having
weight and relief off there shoulders due to the filed bankruptcy.
7) What are the different ways in which the FILM industry makes money from audiences – create a mind map – include
the words below – for a distinction try to find some of your own.
• product placement
•Sponsorship
•Private investment
•Development funds
•Corporate
How do films
make
money?
Product placement: This is when a brand pays a big feature film money
to advertise there product in there film. They do this knowing that the
film they have chosen to advertise there product is popular and stars A
list celebrities. For example Heineken wanted to be featured in the
upcoming bond movie. They paid 45 million for there product to be
featured in there movie so bond would ask for a Heineken instead of a
martini .This 45 million will go to the production of the film.
Sponsorship: To sponsor
something is to support a person,
organization, film company or
event. Different companies will
sponsor a film or TV program so it
can feature before the movie or TV
series begins and advertise there
brand or product. They give money
to the program the are sponsoring
to help them with the production
of the film. An example of a
sponsorship is ‘BOOHOO.com’
sponsoring a reality TV show called
beauty school cop outs.
BOOHOO.com is a clothing website
aimed at younger teens, the target
audience for this reality TV
program is also aimed at younger
teens so the audience from the
program is being shoed this
clothing website.
Private investment: This is when a company pays for the
production of the film, not for them to promote a
product or for the publics amusement or interest, but so
they can educate or get across there point by sharing
there believes and views, which will come across in the
movie that they are helping to produce. An example of a
film which had a private investor was ‘The Blind Side’
which got given money to produce due to the plot of the
story and of the young man that features in this movie.
The minimum buy for individual investors is 300,000.
Development funds: This Is when a
certain famous and popular company
pays money to a independent film
producer to help them create there short
or feature film. They do this because they
want to help and get unknown peoples
talent recognized and acknowledge by
other's in the industry. An example of this
is the national lottery which gives up
some of there funds to help these new
filmmakers create short films and feature
films but they only accepts action movies
and live action movies.
http://www.bfi.org.uk/film-industry
corporate: This is when other companies invest in the
movie to help with the production of it, they might be
involved or in partnership with the company making the
movie . To gain money for this movie they sell different
merchandise for this movie.
5. 8) What is meant by product placement – what famous examples are there of films that have used product placement.
This is when a brand pays a big feature film money to advertise there product in there film. They do this knowing that the film the
have chosen to advertise there product is popular and stars A list celebrities. For example Heineken wanted to be featured in the
upcoming bond movie they paid 45 million for there product to be featured in there movie so bond would ask for a Heineken
instead of a martini .This 45 million will go to the production of the film.
9) How does product placement help films to make money (explore a big blockbuster film)?
To create this big blockbuster film, they need money to produce it to pay for the special effects if needed, for A list actors to star
in the production and to pay for other aspects in production like locations. Some products are also very popular and can bring
in different audiences which brings in more of a a wider audience and income. These companies would pay a big blockbuster
film which stares a list celebrities to show there product in there film for a time of 30 seconds or less, the company who owns
this product will pay the produces a sum of 30 million or more to advertise there product this sum of money will help to the
main production and set up of this big blockbuster film.
10) Where do Independent film companies get their funding – explore development funds, film funding schemes etc. Explain how
development funds and film funding schemes work. (Look at examples like Film four, BBC films, Revolver)
There are many different programs and organization that help with funding for independent film companies for
example ‘kickstaters’ which helps independent film makers advertise and get the general pubic to donate and create
a small fan base and interest for the film. The film is placed on this website, which is then shown to the members the
public the film produces put a set target of what they think would be the price of there production, members would
then donate a set amount of money which they would like to give. Another organization that help with independent
film companies is ‘London microwave’ this helps young film makers produce there film and also to develop there
skills.
11)Explain how sponsorship deals work within the film industry – provide an example of a sponsorship deal for a recent film. (think
of a big blockbuster film, you can try Man of Steel, The Avengers Assemble, The Hobbit – and see what you can find).
http://microwave.filmlondon.org.uk
There are many different sponsors that sponsor many different films. When a certain company or organization
sponsors a film or a program they give money for the production of the film, they also advertise most of the
merchandise and before the showing of the film on the selected channel. They Mainly try to sponsor a film
which is of the same target audience so the audience that watches the film can become know of the company
and the product that is targeted towards them.
