In yesterday’s post, How Social Media is Changing TV, we explored how TV networks are using social media to encourage viewership. The rise in online movie rental services (like Netflix) and the sudden saturation of cheap do-it-yourself rentals (Redbox), has forced the movie industry to rethink its marketing strategy as well.

In case you haven’t read about Paranormal Activity, it cost $15,000 to make and made $7.9 million at the box office. Before the movie aired, moviegoers could ‘Demand’ that the film be shown in theaters in their city. By creating a (false?) sense of scarcity, letting consumers create their own demand, and then delivering a movie they likely were going to deliver anyway, studios empowered consumers. Based on the box office numbers, this empowerment clearly drove theater attendance.

Now, Paranormal Activity 2 is coming out and they’re using a similar strategy. This time, moviegoers are “Demanding” to see it first.  The 20 cities with the most votes will win a free screening.

The second tactic I want to mention is not a social media strategy, but is too big of a trend to ignore: 3D films. You would have to be living under a rock not to notice the explosion of 3D films coming out as of late. By the end of 2009, 3D screens in the US had grown 129% from the previous year and are likely still on the upswing. Movie producers have figured out that for most consumers, the 3D experience can only be had in theaters.

Unfortunately, this tactic might be short-lived. According to this article, 3D’s box office trajectory is on a downward spiral. High ticket prices may be to blame.

As our consumption patterns continue to change, the question becomes: Will entertainment brands struggle to keep up or wow us with new integration and promotion strategies?  What do you think?

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