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How do your rivals’ releasing dates affect your box office?

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  • Fernanda Gutierrez-Navratil
  • Victor Fernandez-Blanco
  • Luis Orea
  • Juan Prieto-Rodriguez

Abstract

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 reduced-form empirical model to measure and test competition effects among films released close to each other in a standard regression framework. Such an analysis is appealing in terms of its policy implication and may provide guidance to distributors to decide on their releasing dates of their firms. We estimate this model using information on the films released in five countries: the USA, the United Kingdom, Germany, France and Spain. The geographical dimension of our data set permits us to control for unobserved heterogeneity among films released using panel data techniques, which allows us to evaluate the individual and specific effects of each film. Thus we deal with one of the most relevant features of the movie market, namely the presence of highly differentiated products. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Fernanda Gutierrez-Navratil & Victor Fernandez-Blanco & Luis Orea & Juan Prieto-Rodriguez, 2014. "How do your rivals’ releasing dates affect your box office?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(1), pages 71-84, February.
    • Handle: RePEc:kap:jculte:v:38:y:2014:i:1:p:71-84
    DOI: 10.1007/s10824-012-9188-0
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    References listed on IDEAS

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    10. Fernanda Gutierrez-Navratil & Victor Fernandez-Blanco & Luis Orea & Juan Prieto-Rodriguez, 2014. "How do your rivals’ releasing dates affect your box office?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(1), pages 71-84, February.
    11. Victor Ginsburgh & Sheila Weyers, 1999. "On the Perceived Quality of Movies," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 23(4), pages 269-283, November.
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    14. Kenneth S. Corts, 2001. "The Strategic Effects of Vertical Market Structure: Common Agency and Divisionalization in the US Motion Picture Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(4), pages 509-528, December.
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    Cited by:

    1. Georgios Alaveras & Estrella Gomez-Herrera & Bertin Martens, 2018. "Cross-border circulation of films and cultural diversity in the EU," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 42(4), pages 645-676, November.
    2. Suarez-Fernandez, Sara & Perez-Villadoniga, Maria J. & Prieto-Rodriguez, Juan, 2022. "Price salience in opinion polls and observed behavior: The case of Spanish cinema," Economic Modelling, Elsevier, vol. 111(C).
    3. Sara Suarez-Fernandez & Maria Jose Perez-Villadoniga & Juan Prieto-Rodriguez, 2018. "Are We (Un)Consciously Driven by First Impressions? Price Declarations vs. Observed Cinema Demand when VAT Increases," ACEI Working Paper Series AWP-02-2018, Association for Cultural Economics International, revised Jul 2018.
    4. Fernanda Gutiérrez-Navratil & Víctor Fernández-Blanco & Luis Orea Sánchez & Juan Prieto Rodríguez, 2017. "Do Movie Majors Really Collude? Indirect Evidence from Release Schedules," Hacienda Pública Española / Review of Public Economics, IEF, vol. 221(2), pages 9-31, June.
    5. Jordi McKenzie, 2023. "The economics of movies (revisited): A survey of recent literature," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 480-525, April.
    6. Frederick Derrick & Nancy Williams & Charles Scott, 2014. "A two-stage proxy variable approach to estimating movie box office receipts," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(2), pages 173-189, May.
    7. Paul Belleflamme & Dimitri Paolini, 2019. "Strategic attractiveness and release decisions for cultural goods," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(2), pages 198-224, April.
    8. Belleflamme, P. & Paolini, D., 2015. "Strategic Promotion and Release Decisions for Cultural Goods," LIDAM Discussion Papers CORE 2015037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. Fernanda Gutierrez-Navratil & Victor Fernandez-Blanco & Luis Orea & Juan Prieto-Rodriguez, 2014. "How do your rivals’ releasing dates affect your box office?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(1), pages 71-84, February.
    10. Darlene Chisholm & Víctor Fernández-Blanco & S. Abraham Ravid & W. David Walls, 2015. "Economics of motion pictures: the state of the art," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(1), pages 1-13, February.
    11. Juan Prieto-Rodriguez & Fernanda Gutierrez-Navratil & Victoria Ateca-Amestoy, 2015. "Theatre allocation as a distributor’s strategic variable over movie runs," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(1), pages 65-83, February.
    12. Denis Y. Orlov & Evgeniy M. Ozhegov, 2016. "Do sequel movies really earn more than non-sequels? Evidence from the US box office," ACEI Working Paper Series AWP-03-2016, Association for Cultural Economics International, revised Apr 2016.

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    More about this item

    Keywords

    Temporal competition; Movie exhibition; Film industry; Panel data; Unobserved heterogeneity; Differentiated products; Z10;
    All these keywords.

    JEL classification:

    • Z10 - Other Special Topics - - Cultural Economics - - - General

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