The Black Market or Marketing Reach Link

imag01951The Black Market or Marketing Reach Link

 

To: President George W. Bush & President Elect Barak Obama

From: Frank Paul Gambino

Date: 7 January 2008

 

You must not take risks with what you own and what you earn over the coming 12 months. A more cautious approach to career and financial matters is a must, especially if you have now reached a position of power. Don’t throw it away.

It may be tempting to shoot the messenger if what you hear today is not to your liking but don’t overreact. If a friend or colleague has some bad news to impart you must be big enough to take it and deal with it. It’s not the end of the world.

I want to introduce what I think is sound investment and perhaps a new trend for entertainment and the artist, actors and actresses and because of my self imposed space restrictions I will get to the point.  As for bad news when t did I ever get any good news? Let me decide if it is the end of the world, well Paul Castellano anyway.

 

The Black Market or Marketing Reach Link

 

By; Frank Paul Gambino

 

I do not know if you noticed, but the DVD piracy market is putting out some impeccable copies of movies still in the movie theaters, yet people still go to the movies.  I do not know if black market DVD’s replace the demand to go out the movies but what I do know is that it increases the reach (How many people see the movies). Is the black market good for Hollywood actors and actresses or bad for them?  The answer to that depends on who controls the distribution of the pirated videos.  And there is the term pirated appropriate?

 

Personally I think the term black market will phase out and it will be called what it actually is which street sale is?  A major breakthrough for the musical artist was MTV it gave music videos reach and frequency often at the cost of the artist, because it was considered a promotional tool even as commercials were in the mix and companies like Pepsi and Coke paid for air time because they knew that music videos attracted a young viewing audience, so the record companies got paid from both sides and in exchange the recording artist got famous.  Not necessarily a fair exchange.  Personally I think when an artist performs in a music video they should get paid by the record company for doing what they are doing which is acting in a short musical film.  This should be a union issue!

 

The street sales of DVD’s is a direct sale to the consumer, the cost of these DVD’s are low because the overhead is small.  Most movies make their money back with a profit in the theaters.  The costs of making a movies is not considered in the marketing of pirated DVD’s, they costs about $0.25 to $.50 to make as the artwork is inexpensive and they are distributed to the neighborhood dealer for about $1.50 to $2.00 per copy, at least $1.00 profit is made per DVD at the distribution end.  The catch is that millions upon millions of these movies are sold each in places like New York City and around the world.

 

Music videos can cost as much as $2 million to make without including a salary to the artist to be recouped from the artist share of album sales, meanwhile a decent movie can be filmed for about $10 million especially if the actors are not getting paid extravagant salaries and through direct sales and the movie theaters all monies for the filming of the movies will be made back with a generous profit and what is good about this is that the reach and frequency of the movies will be huge.

 

So the question of a Michael Jackson, Janet Jackson or Alicia Keys $2 Million dollar music video verse a $10 Million movie with some of his songs included in the script which one will be more beneficial?   I will leave this as an open ended question, but if the goal is to sell albums, get out a Buzz and get paid at all ends instead of being exploited literally by the record companies, it is a clear distinction as to which strategy is more profitable to the artist, trying to gain reach and frequency and getting paid in the process.     

 

 

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One CommentLeave a comment

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