Intertemporal Movie Distribution: Versioning When Customers Can Buy Both Versions

Joan Calzada and Tommaso Valletti

Marketing Science, 2012, vol. 31, issue 4, 649-667

Abstract: We study a model of film distribution and consumption. The studio can release two goods, a theatrical version and a video version, and has to decide on its versioning and sequencing strategy. In contrast with the previous literature, we allow for the possibility that some consumers may watch both versions. This simple extension leads to novel results. It now becomes optimal to introduce versioning if the goods are not too substitute for one another, even when production costs are zero (pure information goods). We also demonstrate that the simultaneous release of the versions ("day-and-date" strategy) can be optimal when the studio is integrated with the exhibition and distribution channels. In contrast, a sequential release ("video window" strategy) is typically the outcome when the studio negotiates with independent distributors and exhibitors.

Keywords: product segmentation; versioning; sequencing; distribution channels; movie industry; information goods (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://dx.doi.org/10.1287/mksc.1120.0716 (application/pdf)

Related works:
Working Paper: Intertemporal movie distribution: Versioning when customers can buy both versions (2011)
Working Paper: Intertemporal Movie Distribution: Versioning when customers can buy both versions (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormksc:v:31:y:2012:i:4:p:649-667

Access Statistics for this article

More articles in Marketing Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().