competitive dynamics, release timing --> Krider & Weinberg, 1998

Question 1

article in a nutshell

Answer 1

extremely short life cycles + high production costs, frequent introduction of new movies, rapid decline in revenues after opening

–> timing of release = critical

want to open early in season to avoid head-to-head competition

Question 2

two important facrtos exterting forces influencing revenue stream of movies

Answer 2

external forices of competition

internal force of drawing power

Question 3

external forces of competition

Answer 3

demand during high-season window

Question 4

internal force of drawing power

Answer 4

marketability
playability

Question 5

2 strategic problems - film industry

Answer 5

pressure to open early & be available during whole popular season
e.g. summer

pressure to avoid other movies
- competition for the same target audience

Question 6

drawing power - marketability

Answer 6

generation of audience interested BEFORE release

through e.g. star actors, star director, story …

Question 7

drawing power - playability

Answer 7

ability of movie to keep audience AFTER release

relies on WoM, market research, test screenings

Question 8

risky movie - production costs of moves

Answer 8

hollywood - 50-400 million
indie - 5-20 million

7/10 FAIL to earn back investments

Question 9

advertising - wide release trend

Answer 9

marketing in terms on advertising

strong primary demand

exponentially sharp decline in demand

slight recovery

Question 10

blockbuster revenue trend - platform release + WoM

Answer 10

marketability sets off - demand boost e.g. christmas week

test maket

playability

good WoM slows decay rate

Question 11

platform release + WoM

Answer 11

WoM instead of heavy advertising

slow increases the number screens exhibitng the movie

less revenues accrued earky in the film

rarely leads to blockbuster film except for sleeper

Question 12

sleeper hit example

Answer 12

= slow building revenue pattern leading to blockbuster hit

e.g. forrest gump
less revenue than production budget, re-released, won 6 academic awards

Question 14

differences and seasonality in italy and netherlands

Answer 14

market size per week can vary strongly per country/region

italy - summer = weak

netherlands - sinterklass = unique

north america - christmas = strong

Question 15

half-life of movie

Answer 15

average half-life = 2.1 weeks

movies revenues typically drop by 50% after two weeks of release

Question 16

which movie should delay? - terms of playability

Answer 16

movie with shorter legs should delay
- playability - legs

Question 17

which movies should dealy in terms of marketability

Answer 17

greater diff in marketability the more other one has reason to delay

BUT when both movies have relatively long half-lives
- shorter legs should delay

Question 18

how are leggiest movies measured

Answer 18

by ration between total domestic box office revenue and largest weekend gross

Question 19

key takeaways from strategic timing of movie

Answer 19

should avoid head-to-head competition with similar movies while poviding added consumer value

Question 20

key takeaway of movie marketing department should pay relatively more attention

Answer 20

to playability - legs
as opposed to marketability in their movie release timing decision

Question 21

marketability key takeaway

Answer 21

reflected by opening strength NOT wom

movie characteristics-actors, directors, storyline, special effects

Question 22

playbility key takeaways

Answer 22

abiltity to keep audiences after release
good WoM = long run time
greater half-life - more pressure to open early
‘leggy fim - strong/profitable box office stamina
‘leggy’ film - audience drawing power beyond opening weekend