Impact of Movie Audience Ratings and Critics Ratings on Box Office Outcome

Md Fourkan, Tanvir Alam and Sedratul Saima
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Md Fourkan: Kent State University, USA and South Dakota State University, 800 E. Summit St. Kent, OH 44242, USA.
Tanvir Alam: Bangladesh Institute of Bank Management (BIBM), BBA in Finance, Jagannath University, Dhaka, Bangladesh.
Sedratul Saima: University of Chittagong, Bangladesh.

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Abstract: The paper aims to predict the revenue from the gross box office as a function of a few relevant factors that contribute to the earnings of theater revenue for a movie. Using the Ordinary Least Square (OLS) method we modeled the revenue of gross box office of movies in the U.S. market as a function of audience rating, and critics' ratings along with the relevant control factors that might confound the above-mentioned variables' predictive relationships. In regression model 3, we find the negative and insignificant impact of the audience rating variable on box office revenue. However, these findings are similar to previous findings in big data analysis on the movie industry in that ratings are showing a negative relationship with revenue [1]. In regression model four, our final model with another important variable of interest in this paper, we have included critic ratings along with all other variables from the previous three models. Although we find high critic ratings' insignificant impact on box office revenue in our sample, the relationship direction is positive in this case.

Date: 2023-04-03
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Published in Asian Journal of Economics, Finance and Management , 2023, 5 (1), pp.119-130

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05132202

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