New Release: An Empirical Analysis of VHS/DVD Rental Success

James Jozefowicz, Jason Kelley () and Stephanie Brewer

Atlantic Economic Journal, 2008, vol. 36, issue 2, 139-151

Abstract: This paper studies movie rental revenue in the home video industry. Using a cross-section of the top 100 films from 2001 as a sample, domestic Video Home System (VHS) and Digital Versatile Disc (DVD) rental revenues are tested for responsiveness to independent variables including: box office gross revenue, production budget, aggregate critic rating, Motion Picture Association of America (MPAA) rating, genre, star power, word-of-mouth information, total award nominations, and economic variables. Results for the Ordinary Least Squares regressions reveal positive impacts of box office revenue, stardom, Restricted (R) and Parents Strongly Cautioned (PG-13) MPAA ratings, and some genres on VHS and DVD gross rental revenues. The positive and significant coefficient on the income variable for the DVD regression and the uniform lack of significance for the award, critic rating, and word-of-mouth variables are of particular interest. Copyright International Atlantic Economic Society 2008

Keywords: Movie economics; Movie rental performance; VHS/DVD rental revenue; Word-of-mouth; D00; L10 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s11293-008-9111-4

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