The performance of global film franchises: installment effects and extension decisions

Darren Filson and James H. Havlicek ()
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James H. Havlicek: NBCUniversal Media, LLC

Journal of Cultural Economics, 2018, vol. 42, issue 3, No 5, 447-467

Abstract: Abstract An empirical exploration of global film franchises provides insights for managers of film franchises, investors in franchisable products, and scholars interested in motion picture performance. Performance tends to deteriorate as extensions are introduced: production budgets rise, advertising expenditures remain similar, and the number of opening-weekend theaters experiences a jump with the first sequel and then remains similar in subsequent installments. However, revenue, return-on-investment (ROI) and audience and critical reviews fall, and foreign performance becomes increasingly important. Offsetting deteriorating performance, risk falls: revenue and ROI become more predictable. An early change in the lead actor causes reduced performance, but changes in key product characteristics and inputs in later installments help prolong the franchise. ROI of the current installment is the most critical financial determinant of whether a further extension will occur, but high-budget films and those with higher domestic share of revenue are also more likely to yield further extensions.

Keywords: Film franchise; Sequel; Motion picture; Movie; Globalization; Brand extension (search for similar items in EconPapers)
JEL-codes: F61 G31 L82 M31 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s10824-018-9316-6

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