Chapter 4

Venue Economics & ServiceScapes

Types of Entertainment Content    Performance - music, dance,theater, opera, magic and combinations Experiential - playing, visiting, recreating, learning, exploring, etc.

Media-dependent (property) - TV shows, movies, music sold as DVD, cable, Internet, etc. (Intellectural property subjects)

Entertainment Venues    Performance venues - theaters, performing arts centers, cinemas Experience venues - casinos, spas, luxury resorts, cruise ships, museums, theme parks, zoos Arenas and Stadiums - specialty activity venues

SERVIC-ESCAPE Performance + Experience + Market Places + Consumption Sites = Servic-Escape

Venue as ServiceScape  Shopping centers and retail superstores  Malls and shopping experiences:  Flagship stores: Nike, Costco (Lifestyle oriented)  Concept stores: Sony (Experience oriented)  Destination malls: South Coast Plaza Everything in the mall

Experience Venue Guidelines     Landmarks - physical symbols (REI) Malls - strolling with emphasis hubs Conceptual lines - provide direction and suspense Core attraction - “wow” effect

Venue Design and Aesthetics

Why are we attracted?

 Architectural theming  Room-in-room principle  Furniture for watching  Convenience and safety

Venue Price Setting Steps 1. Set objectives 2. Estimate demand 3. Calculate costs 4. Analyze competitors 5. Select a pricing policy: one/multi price 6. Determine price-setting methods: e.g. last min. deal 7. Decide on final price (any discount?)

Ticket Pricing Strategies  Competitive pricing - going rate (based on performers)  Discriminatory pricing  Consumer segment pricing  Performance pricing  Image pricing  Location and time pricing

Ticket Distribution Strategies  Venue box office  Centralized ticket agencies  Internet bookings  Ticket consolidators  Open marketplace

Franchising    Paying for a brand’s name and concept and running the business independently Integration of media with licensing and merchandising New opportunities through technology

Piracy       Optical disc Internet Downloadable media • theatrical theft • signal theft • broadcast piracy Streaming media • public performance Camcording Screeners • parallel importation • back-to-back copying

Questions  What aspects of venue aesthetics contribute to experience enjoyment? What venues can you recall that are particularly enjoyable?

 Which types of piracy are most difficult to control? What policing mechanisms can you suggest for halting global piracy?