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The Performance of German Motion Pictures, Profits and Subsidies: Some Empirical Evidence

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  • Christian Jansen

Abstract

This paper pursues three objectives. First, it seeks to identify the determinants of performance of German motion pictures in terms of cinema admissions and producers’ rates of return. Second, against the background of heavy subsidization of the German film industry, it discusses two types of subsidy allocation: committee principle allocation and reference principle allocation. Third, the profitability of the industry is considered as the presumed economic non-viability of the industry constantly recurs in the public debate as an argument for subsidies. Copyright Springer Science + Business Media, Inc. 2005

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File URL: http://hdl.handle.net/10.1007/s10824-005-1157-4
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Bibliographic Info

Article provided by Springer in its journal Journal of Cultural Economics.

Volume (Year): 29 (2005)
Issue (Month): 3 (August)
Pages: 191-212

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Handle: RePEc:kap:jculte:v:29:y:2005:i:3:p:191-212

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Web page: http://www.springerlink.com/link.asp?id=100284

Related research

Keywords: German movies; motion picture; industry; subsidies;

References

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  1. M. Bagella & L. Becchetti, 1999. "The Determinants of Motion Picture Box Office Performance: Evidence from Movies Produced in Italy," Journal of Cultural Economics, Springer, vol. 23(4), pages 237-256, November.
  2. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
  3. Kornai, Janos, 1986. "The Soft Budget Constraint," Kyklos, Wiley Blackwell, vol. 39(1), pages 3-30.
  4. Kornai, J, 1979. "Resource-Constrained versus Demand-Constrained Systems," Econometrica, Econometric Society, vol. 47(4), pages 801-19, July.
  5. De Vany, A. & Walls, W.D., 1999. ""Uncertainty in the Movies: Does Star Power Reduce the Terror of the Box Office?"," Papers 98-99-10, California Irvine - School of Social Sciences.
  6. Hamlen, William A, Jr, 1994. "Variety and Superstardom in Popular Music," Economic Inquiry, Western Economic Association International, vol. 32(3), pages 395-406, July.
  7. Steven Albert, 1998. "Movie Stars and the Distribution of Financially Successful Films in the Motion Picture Industry," Journal of Cultural Economics, Springer, vol. 22(4), pages 249-270, December.
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Citations

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Cited by:
  1. Betty Agnani & Henry Aray, 2010. "Subsidies and awards in movie production," Applied Economics Letters, Taylor & Francis Journals, vol. 17(15), pages 1509-1511.
  2. Pablo Brañas-Garza & Maria Paz Espinosa, 2011. "Unraveling Public Good Games," Games, MDPI, Open Access Journal, vol. 2(4), pages 434-451, November.
  3. Jordi McKenzie, 2009. "Revealed word-of-mouth demand and adaptive supply: survival of motion pictures at the Australian box office," Journal of Cultural Economics, Springer, vol. 33(4), pages 279-299, November.
  4. Allègre Hadida, 2010. "Commercial success and artistic recognition of motion picture projects," Journal of Cultural Economics, Springer, vol. 34(1), pages 45-80, February.
  5. Jordi McKenzie, 2010. "Do 'African American' films perform better or worse at the box office? An empirical analysis of motion picture revenues and profits," Applied Economics Letters, Taylor & Francis Journals, vol. 17(16), pages 1559-1564.
  6. Jordi McKenzie, 2010. "How do theatrical box office revenues affect DVD retail sales? Australian empirical evidence," Journal of Cultural Economics, Springer, vol. 34(3), pages 159-179, August.
  7. Ana Suárez-Vázquez, 2011. "Critic power or star power? The influence of hallmarks of quality of motion pictures: an experimental approach," Journal of Cultural Economics, Springer, vol. 35(2), pages 119-135, May.
  8. Morris Holbrook & Michela Addis, 2008. "Art versus commerce in the movie industry: a Two-Path Model of Motion-Picture Success," Journal of Cultural Economics, Springer, vol. 32(2), pages 87-107, June.

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