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Distribution strategy and movie performance: an empirical note

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  • Rocco Ciciretti
  • Iftekhar Hasan
  • Maya Waisman

Abstract

This paper examines the Italian movie industry and documents a significant role of distribution strategy affecting film success. While the evidence is consistent with the positive “rent capture” effect of star artists (Ravid in J Bus 72:463–492, 1999 ), the crucial role of famous directors (John et al. in Working Paper, New York University, 2004 ), their experience (John et al. in Working Paper, New York University, 2004 ), the significant impact of critics (Basuroy et al. in J Market 67: 103–117 2003 ), financing strategies (Palia et al. in Rev Financ Stud 21(2):483–511, 2008 ), and stock market reactions (Einav and Ravid in J Cultural Econ 33, 311–319, 2009 ), this paper adds the crucial role of distribution power, such as the alliance with reputable foreign distributer and the choice of theatre location, in revenue success and endurance in the market. Additionally, we find evidence of success for specialization in comics but not in R-rated action movies (Ravid and Basuroy in J Bus 77:155–192, 2004 ). Copyright Eurasia Business and Economics Society 2015

Suggested Citation

  • Rocco Ciciretti & Iftekhar Hasan & Maya Waisman, 2015. "Distribution strategy and movie performance: an empirical note," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(1), pages 179-187, June.
    • Handle: RePEc:spr:eurase:v:5:y:2015:i:1:p:179-187
    DOI: 10.1007/s40822-015-0023-8
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    References listed on IDEAS

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    1. Ravid, S Abraham, 1999. "Information, Blockbusters, and Stars: A Study of the Film Industry," The Journal of Business, University of Chicago Press, vol. 72(4), pages 463-492, October.
    2. Becchetti, L. & Ferrari, M. & Trenta, U., 2014. "The impact of the French Tobin tax," Journal of Financial Stability, Elsevier, vol. 15(C), pages 127-148.
    3. Ya-Ching Lee, 2011. "Reciprocal Effects of Media Extensions," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 1(1), pages 54-72, June.
    4. Darius Palia & S. Abraham Ravid & Natalia Reisel, 2008. "Choosing to Cofinance: Analysis of Project-Specific Alliances in the Movie Industry," The Review of Financial Studies, Society for Financial Studies, vol. 21(2), pages 483-511, April.
    5. S. Ravid & John Wald & Suman Basuroy, 2006. "Distributors and film critics: does it take two to Tango?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 30(3), pages 201-218, December.
    6. Giorgio Giorgio, 2014. "Monetary policy challenges: how central banks changed their modus operandi," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 4(1), pages 25-43, June.
    7. Amit M. Joshi & Dominique M. Hanssens, 2009. "Movie Advertising and the Stock Market Valuation of Studios: A Case of “Great Expectations?”," Marketing Science, INFORMS, vol. 28(2), pages 239-250, 03-04.
    8. Arthur De Vany & W. David Walls, 2002. "Does Hollywood Make Too Many R-Rated Movies? Risk, Stochastic Dominance, and the Illusion of Expectation," The Journal of Business, University of Chicago Press, vol. 75(3), pages 425-452, July.
    9. Liran Einav & S. Ravid, 2009. "Stock market response to changes in movies’ opening dates," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 33(4), pages 311-319, November.
    10. Mohanbir S. Sawhney & Jehoshua Eliashberg, 1996. "A Parsimonious Model for Forecasting Gross Box-Office Revenues of Motion Pictures," Marketing Science, INFORMS, vol. 15(2), pages 113-131.
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    Cited by:

    1. Ahyun Kim & Silvana Trimi & Sang-Gun Lee, 2021. "Exploring the key success factors of films: a survival analysis approach," Service Business, Springer;Pan-Pacific Business Association, vol. 15(4), pages 613-638, December.

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    More about this item

    Keywords

    Movies; Distribution network; Stars and directors; M3; M37; Z19;
    All these keywords.

    JEL classification:

    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising
    • Z19 - Other Special Topics - - Cultural Economics - - - Other

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