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Strategic Decision-Making in Hollywood Release Gaps

Author

Listed:
  • Dalton, John
  • Leung, Tin Cheuk
Abstract
Hollywood blockbusters are usually released in the U.S. before other foreign markets. The release gaps have declined significantly over time and varied greatly across countries. While movie piracy has been suggested as an important determinant for the release gap decision of distributors, theory and evidence suggest there are other important determinants. In this paper, we use a discrete choice release gap decision game model to disentangle the impacts of the i) release gap effect, which includes factors that provide incentives for a distributor to shorten the release gap; ii) word-of-mouth effect, which provides incentives for a distributor to lengthen the release gap; and iii) strategic effect, which accounts for the incentives blockbusters have to avoid each other. We obtain box office and release gap data from the private industry source Boxofficemojo.com. Our results suggest all three factors have an economically significant impact on distributors' release gap decision.

Suggested Citation

  • Dalton, John & Leung, Tin Cheuk, 2013. "Strategic Decision-Making in Hollywood Release Gaps," MPRA Paper 52439, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:52439
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    References listed on IDEAS

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    Cited by:

    1. Tin Cheuk Leung & Shi Qi, 2023. "Globalization and the rise of action movies in hollywood," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 47(1), pages 31-69, March.
    2. 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.
    3. Jing Yan & Feng Yu, 2021. "Can international coproduction promote the performance of cultural products in the global markets? Evidence from the Chinese movie industry," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(4), pages 777-798, November.
    4. Paul Belleflamme & Dimitri Paolini, 2019. "Strategic attractiveness and release decisions for cultural goods," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(2), pages 198-224, April.
    5. Belleflamme, P. & Paolini, D., 2015. "Strategic Promotion and Release Decisions for Cultural Goods," LIDAM Discussion Papers CORE 2015037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Ronny Behrens & Natasha Zhang Foutz & Michael Franklin & Jannis Funk & Fernanda Gutierrez-Navratil & Julian Hofmann & Ulrike Leibfried, 2021. "Leveraging analytics to produce compelling and profitable film content," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(2), pages 171-211, June.
    7. Gänßle, Sophia, 2020. "Big data comes to Hollywood: Audiovisuelle Medienmärkte im digitalen Zeitalter," Ilmenau Economics Discussion Papers 144, Ilmenau University of Technology, Institute of Economics.
    8. Tin Cheuk Leung & Shi Qi & Jia Yuan, 2020. "Movie Industry Demand and Theater Availability," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(3), pages 489-513, May.

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    More about this item

    Keywords

    Hollywood; movie exports; release gap; intellectual property rights;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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