High or low season? Contrasting launch timing considerations for big-budget and low-budget entertainment products

Abstract

Purpose

This paper aims to investigate the moderating impacts of seasonality on the effectiveness of new product commercialization strategies in short-lifecycle markets. The authors contextualize their theory in the vast and culturally significant entertainment industry sector and contrast the effects between independent films and big budget movies.

Design/methodology/approach

This study uses an econometric modeling approach.

Findings

This study finds that unlike new films by well-resourced studios, which must launch in a high season for best performance, independents can generate more revenue in low seasons under certain conditions. The study shows how seasonality moderates the effectiveness of new films’ commercialization strategies and how new product outcomes are different for small independent products than for big-budget productions with regards to distribution duration, advertising expenditure and product characteristics.

Research limitations/implications

This research extends the literature on launch timing, which examines various strategic tradeoffs. In contrast with the few extant studies whose concern is sensitizing to the effects of seasonality (Siqueiraet al., 2016), this research treats seasonality as an exploitable opportunity that can be strategically factored into business planning for small producers. Accordingly, this is the first study to theoretically and empirically investigate the moderating relationship between seasonality, marketing decisions, product characteristics and performance.

Practical implications

To achieve useful specificity, the study constructs its discussion around the highly seasonal entertainment industry sector. The study shows that seasonality moderates the effectiveness of new films’ commercialization decisions and that the strategic outcomes are different for small independent products than for major studio productions in particular.

Originality/value

In contrast with extant research whose concern is sensitizing to the effects of seasonality, our research treats seasonality as an exploitable opportunity that can be strategically factored into business planning. Accordingly, ours is the first study to theoretically and empirically investigate the moderating relationship between seasonality, marketing decisions, product characteristics and performance.

Citation

Ma, J., Huang, D., Markovitch, D.G. and Ratchford, B. (2018), "High or low season? Contrasting launch timing considerations for big-budget and low-budget entertainment products", European Journal of Marketing, Vol. 52 No. 9/10, pp. 1956-1980. https://doi.org/10.1108/EJM-08-2017-0513