Product-Line Decisions and Rapid Turnover in Movie Markets

Yu-Hsi Liu (), Darlene C. Chisholm () and George Norman ()
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Yu-Hsi Liu: Shih-Hsin University
Darlene C. Chisholm: Suffolk University
George Norman: Tufts University

Review of Industrial Organization, 2023, vol. 62, issue 4, No 2, 365 pages

Abstract: Abstract We present empirical evidence on a firm’s decision to eliminate a product from a multi-product line, in a market with rapid product turnover, using weekly micro-level data from a major metropolitan movie market. While film offerings are broadly similar across the market, the timing for removing a specific film varies at the theater level. Theaters are more likely to end a film’s run when the nearest competitor is showing the same film and is owned by the same chain; a film is more likely to survive when the nearest theater is showing the film, but is under different ownership. Theater- and movie-specific factors affect a film’s run length, including the film’s within-theater relative revenues, number of screens, and film rating.

Keywords: Product differentiation; Product exit; Duration analysis; Motion picture; Film (search for similar items in EconPapers)
JEL-codes: C41 D22 L11 L82 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s11151-023-09901-5

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