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Review of Managerial Science

Erschienen in:

01.04.2007 | Original Paper

Determinants of motion picture box office and profitability: an interrelationship approach

verfasst von: Thorsten Hennig-Thurau, Mark B. Houston, Gianfranco Walsh

Erschienen in: Review of Managerial Science | Ausgabe 1/2007

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Abstract

Introduction

Producing and marketing motion pictures is notoriously risky, with only three out of ten movies breaking even and one becoming profitable at the box office. Extending knowledge on the factors that influence a movie’s box-office and on the interrelations between these factors can be seen as major contribution to aid in lowering the number of failures in the motion picture industry. The major aim of this study is to distinguish direct and indirect effects between potential success drivers and motion picture success by understanding the interrelationships among different determinants of movie success.

Methods

Hypotheses are developed with regard to the relationships among a number of factors that have been shown to impact motion-picture box office as well as movie profitability. Applying path analysis, which allows a simultaneous testing of factor interrelations, the hypotheses are subsequently tested against a sample of 331 movies.

Results and conclusion

The factors considered in the analysis explain a remarkable amount of a movie’s success. The findings improve the movie industry’s understanding of motion picture success because for the first time interrelationships between the various factors are considered, which enables the separation of direct and indirect (i.e., mediated) effects. By understanding different kinds of effects on movie success, studios are enabled to allocate budgets more effectively. In addition, the findings offer explanations for previous contrary findings of several factors’ influences on success.

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Titel: Determinants of motion picture box office and profitability: an interrelationship approach
verfasst von: Thorsten Hennig-Thurau
Mark B. Houston
Gianfranco Walsh
Publikationsdatum: 01.04.2007
Verlag: Springer-Verlag
Erschienen in: Review of Managerial Science / Ausgabe 1/2007
Print ISSN: 1863-6683
Elektronische ISSN: 1863-6691
DOI: https://doi.org/10.1007/s11846-007-0003-9

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Abstract

Introduction

Methods

Results and conclusion

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