Discuss the issues raised by an institution’s need to target specific audiences within a media industry which you have studied.
Point 1.
Disney had an issue with competition in attracting thier audience, pixar another company mastering in animation were drawing in Disney’s audience, pixar were discribed as ‘Edgey’. Disney only really had an audience of around 3-9 year olds male and female, they couldn’t seem to gain any higher. Where as Pixar could get an audience of all ages, therefore creating a much wider audience gap. Disney as an institution saw how much of a problem Pixar were.
1979 it started out as lucasfilm, then in 1986 the company was bought by Steve Jobs. Disney and pixars relation ship was that pixar handled creation and production whilst disney took care of marketing and distributing. All profits were split 50/50 and yet Disney owned rights to sequels. Disney were lacking and only a small rival in terms of production and creation, to date there last succesful animation was Tarzan in 1999, Pixar were dominating the animation field and Disney saw this, they realised that to make money they need to stay a part of Pixar.
2004 companies came to blows, Pixar placed dimands, Disney refused. 2007 the institution settled and Disney bought Pixar for $7.4 Billion Dollars. Disney’s issue was competition, they resolved this by buying out the competition to gain the audience the needed to target.
Other Points…
Money-
To attract your targeted audience, a main issue is having the money to do so. Pixar had this problem with marketing and distribution, they had the creativity and all they need to produce but no money to create or distribute.
Steve jobs invests $5m and Pixar begins. The company dreams of making a feature length but can only afford to make advertisements and short stories, they need a major institution to help. 1991 Disney invest $26m and and expect 3 full legnth feature films. This helped Pixar put their dream into motion but at a cost, with this investment Disney now owned the rights to the films and any sequels. Profit was 50/50.
Pixars issue was money, they didn’t have the funds to target their audience, they needed a major institution to do so, ironically it was the company whose audience they mainly targeted who invested, therefor the investment worked well for Disney.
Pixar now had a new issue, to target their audience they would have to sacrifice 50% of what they should be earning. This issue was major and caused problems in 2004, when Pixar laid out new conditions saying that pixar will control 100% of film profits and rights over the films, Disney saw these as unacceptable, negotiations were underway.