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The purpose of this paper is to develop and empirically test a new framework that shows how different signals of movie quality along with key control variables affect consumers’ post-consumption evaluations, critics’ reviews (CR), and movie box office revenues.

The data set consists of a sample of 332 movies released between 2000 and 2008. Regression was used to test the study hypotheses.

The results suggest that the three signals of movie quality exhibit different effects on three movie performance measures. Of the three cues, the peripheral quality signal is positive related to movie box, moviegoers’ evaluations (ME), and CR. Furthermore, star performance quality is positive related to both ME and CR. Surprisingly, overall quality signal does not display any influence on movie performances.

The primary limitation is the use of cross-sectional study design and future research should apply for time-series technique to test the relationships between movie quality signals and movie performances.

The findings suggest that consumers and critics evaluate movie qualities based on various movie quality signals. Furthermore, the characteristics of movies also have mixed impacts on movie performances. Movie studios may take these findings into account to produce better movies.

This study proposes and empirically tests the impacts of three groups of movie signals – peripheral quality signal, star performance quality signal, and overall quality signal on motion picture performance. This study contributes to service quality literature and signal theory by categorizing different Academy Awards into three groups of quality signals and by empirically testing the proposed relationships.

This work addresses how consumer perceptions of quality may be influenced by the composition of competition. I develop a theoretical framework that explains how consumer evaluations of quality can be negatively impacted by a product's stylistic similarity to popular competitors. These issues are examined empirically using more than 75,000 online consumer evaluations, from the evaluation aggregator Rotten Tomatoes, of 123 feature films released in the United States during 2007. Results suggest that during a movie's opening week, movies that are stylistically similar to the top-performing box office movie are evaluated less favorably. Additional analyses indicate that this negative effect may persist in later periods due to social conformity pressures, and that there is reduced demand for those movies that are stylistically similar to the top box office performer. This article contributes to the broader literature in strategic management by depicting how stylistic features of competitors can affect consumer behaviour and perceptions of quality in markets. This work also suggests managerial implications for entry-timing decisions and positioning choices.

This paper aims to identify the influence of dimensions of movie theater service on customer behavior intention, comparing linear and nonlinear methods.

With a sample of 345 cinema customers, the analysis compares penalty–reward contrast analysis (PRCA) and multiple linear regression analysis (MLR).

This research demonstrates that PRCA brings a better identification of the antecedents of customer behavior intention than MLR, showing that a nonlinear analysis can bring superior decision information to movie theater managers. Also, this study shows that superior performance of aspects related to the client's feelings leads the consumer to a tendency to return and recommend the cinema (behavior intention). This study also confirms that successful recovery actions can compensate for failures.

Although the nonlinear antecedents of customer satisfaction have been studied in the scientific literature, there is a gap of studies applying methods to identify nonlinear antecedents of customer behavior intention (tendency to return and recommend), particularly in the industry of movie theater services. The findings of this research may allow movie theaters to improve the service provided, confronting the great challenges of online movie-watching alternatives.

When advertising is provided in the form of product placements – the inclusion of branded products within media programming – it can increase or decrease the consumer’s utility. This paper aims to investigate the relationship between product placements and the evaluation of media programming by consumers. The authors hypothesize that consumers do not necessarily consider them as traditional advertising because placements of real brands can enhance realism even if placements sometimes interrupt consumption experience. Thus, the authors believe the relationship between product placements and consumer evaluation is overall positive. However, too many product placements in a single program may reverse this relationship. In addition, the relationship might differ based on the nature of programming, such as art versus entertainment films.

Empirical analyses were conducted on 134 movies released between 2000 and 2007 using a generalized method of moments instrumental variable approach.

The estimation results from product placement data on 134 movies released between 2000 and 2007 show that product placements have a significant positive effect on consumer ratings, but when used in excess, the effect becomes negative. In addition, a significant interaction exists between the nature of the film (mainstream vs independent) and the number of placements, such that consumers of independent films are much less likely to view product placements positively.

This research is the first empirical paper that demonstrates the effect of product placements on the evaluation of the media using secondary data.

The purpose of this paper is to investigate two questions. First, are movie-based online community evaluations (CE) on par with film expert evaluations of new movies? Second, which group makes more reliable and accurate predictions of movie box office revenues: film reviewers or an online community?

Data were collected from a movie-based online community Fandango for a 16-month period and included all movies released during this time (373 movies). The authors compared film reviewers’ evaluations with the online CE during the first eight weeks of the movie’s release.

The study finds that community members evaluate movies differently than film reviewers. The results also reveal that CE have more predictive power than film reviewers’ evaluations, especially during the opening week of a movie.

The investigated online community is based in the USA, hence the findings are limited to this geographic context.

The main implication is that film studios and movie-goers can rely more on CE than film reviewers’ evaluation for decision making. Online CE can help film studios in negotiating with distributors, theatre owners for the number of screens. Also, community reviews rather than film reviewers’ reviews are looked upon by future movie-goers for movie choice decisions.

The study makes an original contribution to the motion picture performance research as well as to the growing research on online consumer communities by demonstrating the predictive potential of online communities with regards to evaluations of new movies.

Strategy.

This case can be used on a strategic management course in the second year of an MBA programme, any special elective course on the media and entertainment industry and in executive education programmes to demonstrate the application of strategic management concepts and frameworks.

The Indian film industry was the largest in the world and the seventh largest in terms of revenue. Significant number of movies were made in languages such as Bengali, Marathi, Telugu, Tamil, Malayalam and Kannada, with Hindi commanding the highest number. The film industry in Karnataka made movies in the Kannada language. The industry was plagued by a host of issues with the industry contributing just 2 per cent of the revenues and box office success rate at just around 25 per cent. The state government had set up Karnataka Chalanachitra Academy with the objective of promotion and development of the movie industry in Karnataka. The Chairman of the academy, Shailesh Singh, was extremely concerned about the poor success rate of Kannada movies and was contemplating various options of reviving the ailing Kannada movie industry.

The expected learning outcomes are as follows: application of strategic management frameworks in the context of the movie industry; analysis of industry issues from the long-term and short-term perspectives; study of different entities in the movie industry and the roles they play and their interdependence; applying learning to suggest survival strategies in an extremely competitive market; and insights into the role of government in the media/entertainment industry.

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CSS 11: Strategy.

This study aims to examine the intricate relationships in the making of a box office through a stakeholder lens that considers the influence of filmmakers and theatres on moviegoers' intention to watch a movie at the theatre.

Employing covariance-based structural equation modelling (CB-SEM), this study analyses survey data on cinema-going experience collected from 673 moviegoers in digital era of a new normal.

The findings elucidate that movie branding, movie genre and theatre preference positively influence moviegoers' intention to watch a movie at the theatre. Furthermore, the study unveils that theatre preference is swayed by an array of personal and social factors, including control belief and social companion. Intriguingly, promotional elements, both commercial and non-commercial, were found to influence movie branding, yet not the genre when predicting theatre attendance intentions.

Amid the burgeoning alternatives for watching movies (e.g. cable television and online streaming platforms), this article offers a contemporary exploration of the variables that motivate audiences to partake in the cinema-going experience, thereby serving as a proxy to decipher the factors that drive a movie's box-office success in digital era.

Unlike prior studies relying on archival data, the present study collects and uses survey data to develop a novel stakeholder theory-based marketing framework for the box office and moviegoers. The study also provides seminal insights on the box office and moviegoers in the digital era of a new normal.

We examine the role of financial and nonfinancial performance measures in managing revenues derived from life cycles of a type of intellectual property products − motion pictures.

Our study focuses on the first two markets in which audiences can watch a motion picture – the upstream theatrical market and the downstream home video market. We combine data collected from numerous public and proprietary sources and form a final sample of 654 motion pictures. Then we perform regression analysis on the data.

First, three measures of a movie’s performance in the theatrical market, opening box office revenue, peak rank, and weeks at the peak rank, have positive effects on subsequent revenues in the home video market. Second, the same set of performance measures also predicts the motion picture’s life span in the theatrical market. Third, when the actual life span of a motion picture in the theatrical market deviates from its predicted value, the total return on investment in the motion picture decreases.

We do not have data on other downstream markets related to motion pictures, such as pay-per-view and online video streaming.

This study suggests that the public and proprietary data can be used to inform managerial decisions regarding intellectual property product life cycles.

This is the first accounting study that directly examines life cycle revenues of intellectual property products. We also extend literature on revenue driver and revenue management research to the product level.

With the increasing importance of e-commerce to the economy and people's lives, user-generated content, such as electronic word-of-mouth (eWOM) represented by online reviews, has exploded. On one hand, it is of great significance for review consumers (readers) to identify high-quality ones from a large number of existing reviews to assist their purchase decision. On the other hand, how to use appropriate strategies to make their published reviews more concerned by others is also important to review generators (reviewers). The purpose of this study is to understand the comprehensive relationship among review characteristics, review helpfulness and receiver attention.

This study uses the online movie reviews obtained from the most popular review platform in China to conduct multiple empirical analyses.

The results show that the review helpfulness plays a mediating role between the emotional characteristics of online reviews and the receiver attention, and such a mediating role is more significant among reviewers with rich review expertise. The reviewer's expertise also moderates the impact of review emotions on review helpfulness.

This work studies eWOM receiver involvement, which can ultimately impact product sales, but seldom be investigated in eWOM domain. Therefore, this research can enrich studies on eWOM and provide valuable practical implications as well.

The convergence of multimedia, virtual reality and the Internet is promoting low‐cost multimedia virtual environments which are easily accessible to large network communities. These environments, which facilitate usability and enhance user experience, are very suitable for supporting user‐oriented application domains such as e‐learning and entertainment. This paper presents a multimedia virtual environment, namely the Virtual Video Gallery, an advanced, distributed media on‐demand system which is browsable through a virtual world. By taking a virtual walk inside the gallery, the user can interactively select, preview, watch and control multimedia sessions. While the user‐centred design of the system relies on UML‐based modelling techniques, system implementation is obtained by the integration of Java, VRML and Web‐based technologies. In order to evaluate the user‐oriented effectiveness of the Virtual Video Gallery and compare it to currently available Internet‐based MoD systems, the usability testing of the system was established for deriving both summative and formative usability data.