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The Timing of Movie Releases: Evidence from the Home Video Industry

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  • Lesley Chiou

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    (Department of Economics, Occidental College)

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    Abstract

    In the movie industry, an intriguing question is why studios cluster their big theatrical hits during the Memorial Day or July 4th weekends in the early summer as opposed to the fall. This paper examines the home video industry to provide more evidence on whether booms in theatrical revenues are supply- or demand-driven. First, I find no evidence of segmentation within the home video market by genre or newness of videos. Secondly, my estimates of the seasonality within the home video market suggest that Memorial Day and July 4th may be more favorable for a theatrical release than Labor Day.

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    File URL: http://faculty.oxy.edu/lchiou/timing.pdf
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    File Function: Revised version, 2006
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    Bibliographic Info

    Paper provided by Occidental College, Department of Economics in its series Occidental Economics Working Papers with number 4.

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    Length: 41 pages
    Date of creation: Nov 2005
    Date of revision: Jul 2006
    Handle: RePEc:occ:wpaper:4

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    Keywords: home video; seasonality; discrete choice;

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    1. Julie Holland Mortimer, 2005. "Price Discrimination, Copyright Law, and Technological Innovation: Evidence from the Introduction of DVDs," NBER Working Papers 11676, National Bureau of Economic Research, Inc.
    2. Julie H. Mortimer, 2008. "Vertical Contracts in the Video Rental Industry -super-1," Review of Economic Studies, Oxford University Press, vol. 75(1), pages 165-199.
    3. Cardell, N. Scott, 1997. "Variance Components Structures for the Extreme-Value and Logistic Distributions with Application to Models of Heterogeneity," Econometric Theory, Cambridge University Press, vol. 13(02), pages 185-213, April.
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    6. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
    7. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, Spring.
    8. Amil Petrin, 2002. "Quantifying the Benefits of New Products: The Case of the Minivan," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 705-729, August.
    9. De Vany, Arthur S & Walls, W David, 1997. "The Market for Motion Pictures: Rank, Revenue, and Survival," Economic Inquiry, Western Economic Association International, vol. 35(4), pages 783-97, October.
    10. De Vany, Arthur & Walls, W David, 1996. "Bose-Einstein Dynamics and Adaptive Contracting in the Motion Picture Industry," Economic Journal, Royal Economic Society, vol. 106(439), pages 1493-1514, November.
    11. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
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