In this paper, we study to what extent a movie's box office receipts are affected by the temporal distribution of rival films. We propose a theoretical model that analyses the effects of past, present and future releases on a film's results. Using this model we can analyse how rivals' release dates impact on others' box office revenues. This theoretical model also allows us to carry out some comparative statics by changing some relevant parameters such as time depreciation, film quality or the timeline of exhibition. We have tested the empirical implications of this model using information on the films released in five countries: the USA, the United Kingdom, Germany, France and Spain. In order to maintain a degree of homogeneity, we have constructed an unbalanced panel consisting of films that were released in at least three of these countries. The geographical dimension of our data set allows us to use panel data techniques to control for unobserved heterogeneity among the films released. This allows us to control for one of the most relevant features of the movie market, namely the presence of highly differentiated products.
In various cultural and behavioral respects, emerging market consumers differ significantly from their counterparts of developed markets. They may thus derive consumption utility from different aspects of product meaning and functionality. Based on this premise, we investigate whether the economic rise of emerging markets may have begun to impact the typical "one-size-fits-all" design of many international product categories. Focusing on Hollywood films, and exploiting a recent relaxation of China's foreign film importation policy, we provide evidence suggesting that these impacts may exist and be non-negligible. In particular, we show that the Chinese society's aesthetic preference for lighter skin can be linked to the more frequent casting of pale-skinned stars in films targeting the Chinese market. Implications for the design of international products are drawn.
The main objective of this paper was to examine the relationship between the type of distributor and its influence on the theatre allocation process. In doing so, we study the differences in the theatre elasticity of box-office revenues between distributors, once the other determinants of movie box-office revenues and unobserved film characteristics have been controlled for. The empirical exercise involves estimating a panel for the weekly box-office revenue in the US motion picture market during the 2002-2009 period. Given the dynamic nature of our data and the endogeneity problems that some of the independent variables may present due to the presence of unobserved individual effects of movies, we use the Hausman-Taylor estimator. Regarding theatre allocation, we find evidence of similar, but not homogeneous, behaviour among the so-called Majors, which, in turn, differs from that observed for non-Majors regarding theatre allocation to films. These differences are greater when we consider a selection of more successful movies that are exhibited for a longer run, maybe due to the rise in the amount of uncertainty for this sample. Our results provide indirect evidence of the differences in the market power of distributors.
Producing compelling film content profitably is a top priority to the long-term prosperity of the film industry. Advances in digital technologies, increasing availabilities of granular big data, rapid diffusion of analytic techniques, and intensified competition from user generated content and original content produced by Subscription Video on Demand (SVOD) platforms have created unparalleled needs and opportunities for film producers to leverage analytics in content production. Built upon the theories of value creation and film production, this article proposes a conceptual framework of key analytic techniques that film producers may engage throughout the production process, such as script analytics, talent analytics, and audience analytics. The article further synthesizes the state-of-the-art research on and applications of these analytics, discuss the prospect of leveraging analytics in film production, and suggest fruitful avenues for future research with important managerial implications.
In various cultural and behavioral respects, emerging market consumers differ significantly from their counterparts of developed markets. They may thus derive consumption utility from different aspects of product meaning and functionality. Based on this premise, we investigate whether the economic rise of emerging markets may have begun to impact the typical "one-size-fits-all" design of many international product categories. Focusing on Hollywood films, and exploiting a recent relaxation of China's foreign film importation policy, we provide evidence suggesting that these impacts may exist and be non-negligible. In particular, we show that the Chinese society's aesthetic preference for lighter skin can be linked to the more frequent casting of pale-skinned stars in films targeting the Chinese market. Implications for the design of international products are drawn. * We thank
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