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When does it make sense to do it again? An empirical investigation of contingency factors of movie remakes

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  • Björn Bohnenkamp
  • Ann-Kristin Knapp
  • Thorsten Hennig-Thurau
  • Ricarda Schauerte

Abstract

A substantial number of current Hollywood productions are remakes of earlier motion pictures. This research investigates the economic implications of this strategy. It develops a conceptual framework of brand extension success in the movie industry that builds upon the sensations and familiarity that a movie offers and uses this framework to illustrate how remakes differ from other movie brand extensions (e.g., sequels). The sensations-familiarity framework is complemented by a contingency model that identifies factors which influence revenues and risk of movie remakes. Using a dataset of 207 remakes released in North American theaters between 1999 and 2011 and a matched sample of other movies, the authors find that, on average, remakes do not increase revenues but do reduce financial risk. The authors also provide evidence of the contingency role of several factors, including the original movie’s awareness and image and the relationship between the original movie and the remake. These insights should be valuable for the movie industry, as they can guide movie producers in their selection of movie brands that, if remade, should be more successful at the box office than the “average” movie remake. Copyright Springer Science+Business Media New York 2015

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  • Björn Bohnenkamp & Ann-Kristin Knapp & Thorsten Hennig-Thurau & Ricarda Schauerte, 2015. "When does it make sense to do it again? An empirical investigation of contingency factors of movie remakes," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(1), pages 15-41, February.
    • Handle: RePEc:kap:jculte:v:39:y:2015:i:1:p:15-41
    DOI: 10.1007/s10824-014-9221-6
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    2. Krishnan Jeesha & Sumod S D & Prashant Premkumar & Shovan Chowdhury, 2018. "Does Story Really Matter In The Movie Industry? : PreProduction Stage Predictive Models," Working papers 284, Indian Institute of Management Kozhikode.
    3. 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.
    4. Darren Filson & James H. Havlicek, 2018. "The performance of global film franchises: installment effects and extension decisions," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 42(3), pages 447-467, August.
    5. 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.
    6. Thorsten Hennig-Thurau & S. Abraham Ravid & Olav Sorenson, 2021. "The Economics of Filmed Entertainment in the Digital Era," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(2), pages 157-170, June.
    7. Rubin, Dan & Mohr, Iris & Kumar, V., 2022. "Beyond the box office: A conceptual framework for the drivers of audience engagement," Journal of Business Research, Elsevier, vol. 151(C), pages 473-488.
    8. Raoul Kübler & Rouven Seifert & Michael Kandziora, 2021. "Content valuation strategies for digital subscription platforms," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(2), pages 295-326, June.
    9. Amanda S. King & John T. King & Michael Reksulak, 2017. "Signaling for access to high-demand markets: evidence from the US motion picture industry," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 41(4), pages 441-465, November.
    10. Mark B. Houston & Ann-Kristin Kupfer & Thorsten Hennig-Thurau & Martin Spann, 2018. "Pre-release consumer buzz," Journal of the Academy of Marketing Science, Springer, vol. 46(2), pages 338-360, March.
    11. Pierre-Jean Benghozi & Elisa Salvador, 2016. "How and Where the R&D Takes Place in Creative Industries? Digital Investment Strategies of the Book Publishing Sector," Post-Print hal-02078881, HAL.
    12. Hofmann, Julian & Clement, Michel & Völckner, Franziska & Hennig-Thurau, Thorsten, 2017. "Empirical generalizations on the impact of stars on the economic success of movies," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 442-461.

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