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

Author

Listed:
  • Renaud Legoux

    (HEC Montréal - HEC Montréal)

  • Denis Larocque

    (HEC Montréal - HEC Montréal)

  • Sandra Laporte

    (HEC Montréal - HEC Montréal)

  • Soraya Belmati

    (HEC Montréal - HEC Montréal)

  • Thomas Boquet

    (HEC Montréal - HEC Montréal)

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

  • Renaud Legoux & Denis Larocque & Sandra Laporte & Soraya Belmati & Thomas Boquet, 2016. "The effect of critical reviews on exhibitors' decisions : Do reviews affect the survival of a movie on screen ?," Post-Print hal-05775769, HAL.
  • Handle: RePEc:hal:journl:hal-05775769
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