Customer Lifetime Value in Movie Business Essay

Unlike other industries, the marketing scenario in media and entertainment application such as movie or music business be more unpredictable and unstable. In terms of movie industry, which differs from typical reaping category, nevertheless, provides a variety of interesting multiple-genres products serving different audience herds for entertainment.The dissemination is quite rapid and the product life shell is extremely short, unconstipated though reversioning or rerunning might take place. Correspondingly, the customer lifetime think of is relatively low and difficult to estimate. The brand loyalty doesnt tally too much sense in this area whatever elephantine movie studios or indie films, the audience goes for a movie ground on their personal preference or word-of mouth communications (both online and offline). olibanum a lot of customer churn happen in movie industry and nobody knows anything theory occupies, which leads to a unstable and insignificant safekeeping rate. As a result, we cannot utilize the formulation II regarding retention order in book to estimate CLV here. Instead, if we use the first formulation, a series of hypothetical figures are required. Based on database from NATO(National Association of area Owners), the fairish customer goes for movie 5 times a year. A movie fan maybe watch film every week. The average ticket price per year is around $7.5. However, the variable cost for ticketing and encyclopaedism cost per cost are unknown.However, the concept of CLV still of salient significance to movie industry that1) It comes up with the concept of customer segmentation. We should cope different customers differently. For instance, to implement rewarding incentives or promotion to retain those diehard moviegoers that value much to the business. It is also an effective method to gathering audiences schooling and data. 2) Multiple marketing strategies are required to promote a exclusive product( one movie) and maximize the pro fitable value. Besides, the entertainment industry should try to coerce the free model in the digital time, for instance, to create spin-off products cerebrate to the movies as another revenue stream.