Theatrical Release and the Launching of Motion Pictures

doi:10.1017/CBO9780511614422.005

4 - Theatrical Release and the Launching of Motion Pictures

Published online by Cambridge University Press: 02 December 2009

Charles C. Moul and

Steven M. Shugan

Edited by

Charles C. Moul

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Charles C. Moul: Affiliation:
Assistnat Professor of Economics, Washington University in St. Louis
Steven M. Shugan: Affiliation:
Professor of Marketing, University of Florida
Charles C. Moul: Affiliation:
Washington University, St Louis

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Summary

When the movie has been made and the costs have been paid, it is time for the distributor to send the movie into the world of potential consumers to find the largest possible audience. Whereas the theatrical life of a movie now represents only one of several revenue-generating components, the launching of a movie has implications that reverberate for the rest of its commercial life. Consequently, this chapter focuses on how movies are sent into theatrical exhibition.

The theatrical release of a movie is the most visible part of its commercial life, and a number of fascinating questions are being or have yet to be addressed. How well can studios and analysts predict movies' theatrical performances? How much is an Oscar nomination worth? Is the current system of release timing the best possible one for consumers? What about for businesses? Is the vertical integration of production and distribution foreclosing independent moviemakers from having their movies shown in theaters? How important is word of mouth, and do distributors anticipate word of mouth and behave in ways to increase their own profits?

This chapter attempts several tasks. First, we examine the movies that were launched in 2002. This was a fairly typical year, and its consideration will instruct later efforts. Second, we integrate a small portion of the extant marketing and economics literature, providing general implications made possible by that integration. The chapter concludes with ideas and directions for future research.

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Type: Chapter
Information: A Concise Handbook of Movie Industry Economics , pp. 80 - 137

DOI: https://doi.org/10.1017/CBO9780511614422.005 [Opens in a new window]

Publisher: Cambridge University Press

Print publication year: 2005

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