Impact of Social Media on Entertainment Industry

The report aims at understanding the different impacts that are created by the advancement of the social media and the manner in which it affects the Entertainment industry. The report also enumerates the manner in which the social media helps the entertainment industry- Films, Music and the like in understanding the different key elements of the trends and the alteration of the preferences of the consumers.

Running head: IMPACT OF SOCIAL MEDIA
IMPACT OF SOCIAL MEDIA
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Executive summary
The report aims at understanding the different impacts that are created by the advancement of the
social media and the manner in which it affects the Entertainment industry. The report also
enumerates the manner in which the social media helps the entertainment industry- Films, Music
and the like in understanding the different key elements of the trends and the alteration of the
preferences of the consumers.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Findings and analysis...................................................................................................................3
3. Conclusion and recommendations...............................................................................................8
References......................................................................................................................................10

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1. Introduction
The technological advancements have brought about changes in the communication
methodologies. The introduction of the social media channels has facilitated the growth of the
global communications and brought about significant development in the different industries.
The promotional activities that are taken by the entertainment industry in the 21st century are
facilitated by the utilization of the social media platforms. A recent report found that some
79% of the television viewers visit Facebook while watching the regular shows. It represents the
promotional activities that the entertainment industry undertakes through the social media
platforms (Hollywoodreporter.com 2018).
The key purpose of the report is based on the understanding of the manner in which
social media creates an impact on the entertainment industry in the modern generation. The
usage of the social media as a tool to reach out to people and the manner in which it affects the
promotional activities is a part of the discussion that is undertaken in this context. The music
films and the television industry have experienced a steep growth through the proper functioning
of the social media platforms, which is taken as the basis of the discussion.
2. Findings and analysis
The social media has become one of the favorable entertainment channels through which
the viewers derive their entertainment more than the utilization of the television or the other
medias. It has affected the growth of the shows and the other events that are undertaken by the
developers for facilitating the viewer’s engagement in the industry. According to a report
published in the Hollywood Reporter some 88% of the consumers of the entertainment industry

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use Facebook and Twitter as a supplement to their traditional entertainment practices
(Hollywoodreporter.com 2018). It has helped in understanding the different characteristic
elements of the change that is faced by the entertainment industry through the growth of the
social media platforms. The issues that are faced by the industry are primarily based on the tight
schedule that is faced by the consumers which keep them away from their television sets.
Therefore, the consumers relies more on Facebnook and Instagram for deriving their required
entertainment.
According to Vogel (2014), the understanding of the change in the preferences of the
customers is facilitated through the modification in the entertainment experiences of the
customers. According to a report, the conspicuous nature of the consumers can be found through
the analysis of the time that is spent by the consumers in the social media platforms disregarding
their needs of watching television or listening to music or finding a clip on Youtube.
Heath (2013) stated that the people who are visiting the social media platforms care for
the posts that are made online. The posts influence their interest of watching a particular movie.
It helps the entertainment industry in undertaking the free promotional activities through the
posts that are made by the viewers. It was found that one out of three social networkers have
decided to watch a movie after viewing a post on the same in the social networking site.
Therefore, it has helped in creating awareness among the people where 72% of the respondents
post of a movie they are planning to watch while some 20% gives their views even before
watching.
Certain movies that attracted the attention of the viewers through the social media are
Paranormal Activity and Alice in Wonderland. Alice in Wonderland was a premium hit as

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Disney launched a viral campaign through Twitter and Facebook, which allowed the fans to
enroll themselves as the supporters of the characters in the movie. The utilization of the
promotional method helped Disney in undertaking the most effective campaign through the
usage of the social networking sites. On the other hand, the movie Paranormal Activity earned
some $150 million dollars at the box office, which was due to the utilization of the Facebook
page, which helped in the promotional activity (Hartley 2017). There are instances of release of
certain music albums, which was facilitated through the utilization of the social networking sites.
It has helped in the determination of the success factor of the albums. The Endless River by Pink
Floyd is one of the examples that have utilized the social media platform for undertaking the
promotion in the international markets. The mass promotional activities are facilitated through
the utilization of the social media networks. On the other hand, the social networks have become
an integral part of the entertainment industry, which can be taken as a competition in the
international markets. Vogel (2014) stated that the entertainment industry, in the modern days,
are suppressed by the utilization of the social networking and the social media as entertainment
has moved from the theatres to the pockets of the individuals. Rampage, the movie has also
earned their promotion through the social networking activities that are undertaken by the
makers. It has helped in making the people aware on the large scale of the content and the value
of entertainment that the production is aimed at delivering to the viewers of the same. The
determination of the difference between the needs of the consumers relating to the entertainment
on the tight schedules has helped in the evolution of the social networking sites. On the other
hand, the social media today is no ore a meager tool of communication and mass awareness but
also a major characteristic element of entertainment and a strong contender of the television and

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the music developers. However, there are instances where the social media is utilized as a tool by
the entertainment industry for the promotion of their products to the target customers.
According to Vinerean et al. (2013), the social media usage has impacted the growth of
the entertainment industry as there are alteration in the channels and the operation of the same as
per the needs of the viewers. The change in the mediums has affected the customer experience of
the entertainment through the proper functioning of the channels. Gummerus et al. (2012) argued
that the Television and the Film industries must take steps to respond to the viewers habits for
recognizing the needs. On the other hand, the utilization of the social media platforms has helped
the industries in undertaking their growth in the systems as per the needs of the customers.
The functions that are undertaken by the social media plat forms is based on publishing,
networking, sharing, collaborating, messaging and discussing. The functions have helped in the
developmental activities of the film and the music industry. The films and the music industry of
the 21st century have taken steps to collaborate with the social networking platforms to promote
their product to their target audience. It has helped in determining the understanding the major
features of the change in the behavior of the customers. Kane et al. (2012) stated that a detailed
study of the customer behavior would be helping the entertainment industry to flourish based on
the understanding of the needs of entertainment of the target market. On the other hand, the
social media platforms help the developers in understanding the trends that are favored by the
customers of the modern days (Lee and Ma 2012). The promotional activities that are taken by
the entertainment industry through the social networking sites have helped in reaching out to the
global customers. The creation of the fan pages and the reviews that are posted by the customers
will be helping the people in the entertainment industry in bringing forth modifications in their
productions. De Vries, Gensler and Leeflang (2012) stated that the users have found a place in

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the social networking to post their reviews and share their loyalty through the likes in the fan
pages. Suppose for example a fan visits the page of the renowned band Pink Floyd in Facebook
and gets to know of their new album, which can be taken as a promotion activity that is
undertaken by the band through the utilization of the social networking platform. On the other
hand, another fan posts a like on the album “Wish you were here” and comments on the same
helps in enhancing the interaction on the album in the fan page. The viewer gets to know of the
albums and the manner in which the music can bring entertainment to their day-to-day life.
Coulson (2012) stated that some 66% of the people prefer to indulge themselves in the
social networking sites while watching a movie in the theaters. Bothun and Vollmer (2016)
stated that the understanding the functions of social media platforms is based on the
entertainment that is derived from the same, which is more intriguing than the traditional
methods of entertainment. The survey that was published in the Hollywood Reporter has helped
in determining the changes in the behavior of the viewers and the trends that are affecting the
market of the entertainment industry (Baruah 2012). The interaction that is undertaken by the
viewers in the social media platforms has helped in determining the transition in the functioning
of the entertainment industry. A survey suggests that some 67% of the users of the social
networking platforms read the review that is shared by the others while some 33% shares their
own opinions on the same (Baker and Hesmondhalgh 2013). The discussion in the forums and
the groups has helped in facilitating the free promotion for the films and the music industry. It
has also helped in determining the modifications that must be taken by the entertainment industry
for adhering to the entertainment needs of the viewers.
The Hollywood Report (THR) analyzed that the musicians in the industry has also
benefited through the advancement in the social media platforms as the posts that were shared

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by the people has helped the others to gain knowledge on the matter of the lyrics and thereby the
positive posts influenced the people to try out the music (Hollywoodreporter.com 2018). It can
be taken as a promotional method through the reviews and the discussions that has helped the
entertainment industry to flourish as per the needs of the viewers in the market. Hudson et al.
(2015) argued that the social media platforms has helped in determining the promotional
activities for the entertainment industry, but it also holds the risk of dissolution of the industry as
the social media has emerged as a major entertainment segment for the customers.
The evolution of the social media platforms and the advancement of the same have
affected the growth of the entertainment industry as the modern generation is more indulged in
the messaging and the surfing, even more than that of being indulged in the traditional
entertainment practices. Martínez-Cañas, Ruiz-Palomino and del Pozo-Rubio (2012) stated that
some 82% of the youth and the 67% of the middle and old aged viewers have indulged
themselves in the proficiency of the social networking platforms. Dewan and Ramaprasad
(2014) stated that the 21st century has not only witnessed changes in the communication methods
through the enumeration of the social networking platforms, but also experienced a growth in the
entertainment channels that are made available to them at ease. The determination of the needs
of the consumers is an important criteria that helps the entertainment industry to bring in
modifications in the manner in which the organizations seek to provide the proposed value to the
viewers.
3. Conclusion and recommendations
Therefore, from the above analysis it can be stated that the advancement in the social
media has helped the entertainment industry in understanding the needs of the viewers. On the

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other hand, the advancement of the social networking sites can be taken as an alert that might
affect the growth of the entertainment industry as most of the viewers are indulged more on the
social networking platforms. On the other hand, the determination of the preferences of the
people will be helping the entertainment industry to make an early start to compete and cope up
with the advancement of the social media platforms.

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References
Baker, S. and Hesmondhalgh, D., 2013. Creative labour: Media work in three cultural
industries. Routledge.
Baruah, T.D., 2012. Effectiveness of Social Media as a tool of communication and its potential
for technology enabled connections: A micro-level study. International Journal of Scientific and
Research Publications, 2(5), pp.1-10.
Bothun, D. and Vollmer, C. A. H. (2016). 2016 Entertainment & media industry trends & The
E&M sector needs a fan-centric strategy. New York: PwC
Coulson, S., 2012. Collaborating in a competitive world: musicians’ working lives and
understandings of entrepreneurship. Work, employment and society, 26(2), pp.246-261.
De Vries, L., Gensler, S. and Leeflang, P.S., 2012. Popularity of brand posts on brand fan pages:
An investigation of the effects of social media marketing. Journal of interactive
marketing, 26(2), pp.83-91.
Dewan, S. and Ramaprasad, J., 2014. Social media, traditional media, and music sales. Mis
Quarterly, 38(1).
Gummerus, J., Liljander, V., Weman, E. and Pihlström, M., 2012. Customer engagement in a
Facebook brand community. Management Research Review, 35(9), pp.857-877.
Hartley, J., 2017. From the Consciousness Industry to the Creative Industries Consumer-created
Content, Social Network Markets and the Growth of Knowledge. In The uses of digital
literacy (pp. 49-80). Routledge.

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Heath, S., 2013. System and method for social networking interactions using online consumer
browsing behavior, buying patterns, advertisements and affiliate advertising, for promotions,
online coupons, mobile services, products, goods & services, entertainment and auctions, with
geospatial mapping technology. U.S. Patent Application 13/369,244.
Hollywoodreporter.com (2018). THR's Social Media Poll: How Facebook and Twitter Impact
the Entertainment Industry. [online] The Hollywood Reporter. Available at:
https://www.hollywoodreporter.com/gallery/facebook-twitter-social-media-study-302273/1-
social-media-as-entertainment [Accessed 12 Apr. 2018].
Hudson, S., Roth, M.S., Madden, T.J. and Hudson, R., 2015. The effects of social media on
emotions, brand relationship quality, and word of mouth: An empirical study of music festival
attendees. Tourism Management, 47, pp.68-76.
Kane, G., Alavi, M., Labianca, G. and Borgatti, S., 2012. What’s different about social media
networks? A framework and research agenda.
Lee, C.S. and Ma, L., 2012. News sharing in social media: The effect of gratifications and prior
experience. Computers in human behavior, 28(2), pp.331-339.
Martínez-Cañas, R., Ruiz-Palomino, P. and del Pozo-Rubio, R., 2012. Crowdfunding and social
networks in the music industry: Implications for entrepreneurship. The International Business &
Economics Research Journal (Online), 11(13), p.1471.
Vinerean, S., Cetina, I., Dumitrescu, L. and Tichindelean, M., 2013. The effects of social media
marketing on online consumer behavior. International Journal of Business and
Management, 8(14), p.66.

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Vogel, H.L., 2014. Entertainment industry economics: A guide for financial analysis. Cambridge
University Press.