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Movie sentiment and home entertainment revenue

Author

Listed:
  • Rahul Telang

    (Carnegie Mellon University)

  • Liron Sivan

    (Carnegie Mellon University)

Abstract

This study examines the impact of box office reviews on home entertainment (HE) sales predictions, a key for movie revenue. Accurate predictions are crucial for estimating potential losses when licensing films to streaming platforms like Netflix or developing promotional strategies. Our findings indicate that, while the average rating and sentiment score of box office reviews do not directly influence sales predictions, extreme negative sentiments significantly affect consumer behavior. Specifically, consumers are less likely to purchase electronic sell-through (EST) and video on demand (VOD) options when confronted with strong negative sentiments in reviews. This suggests that consumers detect and react to negative sentiments in reviews.

Suggested Citation

  • Rahul Telang & Liron Sivan, 2025. "Movie sentiment and home entertainment revenue," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 49(2), pages 301-326, June.
    • Handle: RePEc:kap:jculte:v:49:y:2025:i:2:d:10.1007_s10824-025-09533-5
    DOI: 10.1007/s10824-025-09533-5
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