deman and supply dynamic for sequential release products --> Elbergse & Eliashberg, 2003

Question 1

article in a nutshell

Answer 1

movie industry
demand and supply interrelated within and across markets

longer time-lag between releases = weaker relationship between domestic + foreign market performances
- buzz generated in home market wears out

Question 2

two determinants affecting behaviour of movie exhibitors - screen allocations and revenues - within country dynamics

Answer 2

playability - legs, longevity, WoM

marketability - movie attributes

Question 3

experience effect, initial market performance influence on subsequent market - across country dynamics

Answer 3

strengthens with longer time lags
- herd behavior, cascades, success breeds success

weaken with longer time lags
- buzz has short life span
–> supported

Question 4

national movie performance

Answer 4

supply: screen share / availability
- making product available

interrelated

demand: box office revenues
- adopting product

Question 5

international movie performance

Answer 5

performance of initial market
- domestic

time lag between initial & subsequent
- domestic and foreign

Question 6

other influences on movie performance

Answer 6

movie attributes
advertising
distributor characteristics
3rd party evaluators
WoM
competitive environment
seasonality

Question 7

Q: explain relationship between critics’ reviews and the number of opening screens

Answer 7

critical acclaim has a (+) effect on box office revenues
- opening weeks

Question 8

exhibitors use reviews as a proxy for WoM effect

Answer 8

main driver of long-term demand for a movie

Question 9

(+) reviews reduce to the need for exhibitors to allocate more screen
- after opening weeks

Answer 9

aniticipate movies longer life cycle
generate more revenues in subsequent weeks

Question 10

critically acclaimed films can gain

Answer 10

of screens later
platform release

Question 11

week 1 mediators/moderaters?

Answer 11

movie attributes
advertising
critical acclaim
competition
seasonality

Question 12

week 2 mediators/moderators

Answer 12

WoM
competition
seasonality

Question 13

week 3 mediators/moderators

Answer 13

WoM
competition
seasonality

Question 14

demand = sales revenues - findings

Answer 14

expected revenue key determinant of # of screens

Question 15

supply = availability - findings

Answer 15

of screens is a key determinant of revenues

Question 16

time lag - findings

Answer 16

longer between releases - weaker relationship between market performance
domestic & foreign

short life-span of buzz

(-) influence on exhibitors and their screen allocations

Question 17

movie attributes - findings

Answer 17

indirect influence on exhibitors and their screen allocations

Question 18

advertising - findings

Answer 18

indirect influence on exhibitors and their screen allocation

predictos of opening weeks revenues and screens
- affect movie marketability

Question 19

3rd party evaluations - findings

Answer 19

reviews (+) revenues - opening weeks - quality sign

reviews (-) # screens - after opening 0 anticipate long legs

Question 20

WoM - findings

Answer 20

predictor of subsequent weeks of revenues and screens
- affects movie playability/legs

Question 21

main predictos of revenues

Answer 21

screen space
controlled by exhibitors

Question 22

distributors need to secure large audiences by marketing for both

Answer 22

audiences = pull

exhibitors/cinemas = push

Question 23

pull strategy example

Answer 23

casting stars

(-) expensive, increased exposure for distributors

solution: focus on movie characteristics relative to other movies on release

Question 24

push strategy example

Answer 24

advertising

important for foreign markets
- shows financial commitment to the movie

Question 25

main hypothesis on delay in foreign markets

Answer 25

longer delay - less buzz and momentum or movie in domestic market buzz = short life span

Question 26

need optimal planning of release date

Answer 26

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