Merchandising in the Major Motion Picture Industry

Abstract

To help guarantee a profit in a very risky industry, major motion picture studios have dramatically increased movie production and marketing budgets. While advertising is the traditional emphasis in the movie marketing mix, in recent years the budget for promotion has equaled the advertising budgets. This essay discusses two areas of movie promotion that studios have increasingly turned to for additional revenues: merchandising and promotional/partner tie-ins. These two elements of the promotion mix generate billions of dollars in revenue for studios each year, but they are generally overlooked by the general population and academic researchers.