Word-of-Mouth in Movies with Platform Release: Theory and Evidence

Yijuan Chen, Xiaojing Ma and Qiang Pan ()

ANU Working Papers in Economics and Econometrics from Australian National University, College of Business and Economics, School of Economics

Abstract: We study the word-of mouth effect on movies with platform release, a common marketing strategy in the motion picture industry. We construct a theoretical model which shows that the word-of-mouth effect together with a sliding-percentage contract between the movie distributor and exhibitors gives rise to the usage of platform release. Using the data in the U.S. motion picture industry from 2000 to 2005, we quantify the word-of mouth sales and estimate the information transmission process in the movies featuring platform release.

Keywords: Word-of-Mouth; Platform Release; U.S.Motion Picture Industry (search for similar items in EconPapers)
JEL-codes: L82 M31 (search for similar items in EconPapers)
Pages: 28 Pages
Date: 2013-04
New Economics Papers: this item is included in nep-com, nep-cul, nep-cwa and nep-mkt
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Persistent link: https://EconPapers.repec.org/RePEc:acb:cbeeco:2013-608

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