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The effect of critical reviews on exhibitors' decisions: Do reviews affect the survival of a movie on screen?

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  • Legoux, Renaud
  • Larocque, Denis
  • Laporte, Sandra
  • Belmati, Soraya
  • Boquet, Thomas

Abstract

This article aims to demonstrate that distribution intermediaries, namely exhibitors, are influenced by critical reviews in their programming decisions after the launch of a movie. More specifically, it tests the effect of critical reviews on the decision of exhibitors to keep or withdraw a movie on their screens from week to week. A unique data set comprising more than 165,000 weekly theater level decisions spanning over a decade is used for the analyses. Exhibitors' decisions are modeled through a discrete time survival model with random effects. Results show that a movie with excellent reviews has more chances to stay longer in a theater when compared to one with poor, fair, or good reviews, even after controlling for the previous week's box office. This finding suggests that a portion of the overall commercial performance usually associated with positive reviews can be attributed to the impact of critics' reviews on exhibitors' decisions to keep the movie on screen for a longer period.

Suggested Citation

  • Legoux, Renaud & Larocque, Denis & Laporte, Sandra & Belmati, Soraya & Boquet, Thomas, 2016. "The effect of critical reviews on exhibitors' decisions: Do reviews affect the survival of a movie on screen?," International Journal of Research in Marketing, Elsevier, vol. 33(2), pages 357-374.
    • Handle: RePEc:eee:ijrema:v:33:y:2016:i:2:p:357-374
    DOI: 10.1016/j.ijresmar.2015.07.003
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