Performance Implications of Network Structure, Resource Investment, and Competition in the German Motion Picture Industry

This study offers a new framework for organizing a motion picture in such a way that chances for box-office success are enhanced. We combine and expand two strands of research for the moviemaking industry: the economic approach and the social network perspective. Therefore, we integrate the product-inherent categories of creative sphere and financial resources as well as the product-induced categories of marketing support and competition with concepts from social network analysis (i.e., connectivity and density). We test our hypotheses on a sample of each year’s top ten German movies as to box-office admissions for the period 1990–2004. In particular, we find that extensive care and industry knowledge are required when organizing the economic and social framework in which a film project is undertaken, since ultimately, movie success does not depend on individual star power. On the contrary: The real star is the team.