TY - JOUR
T1 - Revealed word-of-mouth demand and adaptive supply
T2 - Survival of motion pictures at the Australian box office
AU - McKenzie, Jordi
PY - 2009/11
Y1 - 2009/11
N2 - This study considers a frailty duration approach to modelling the life-length of a sample of 360 films that went into wide release at the Australian box office from 1 January 2000 to 31 December 2005. The analysis extends previous research by considering a range of film-specific covariates relating to distribution, production, consumer signals, and weekly performance. In particular, it is shown that film success (defined in a duration context) responds to previewing, advertising, critical reviews, and US box office-but not to production budget, star power or opening-week screens. The study also reveals that it is appropriate to account for unobservable heterogeneity between films in the choice of empirical methodology.
AB - This study considers a frailty duration approach to modelling the life-length of a sample of 360 films that went into wide release at the Australian box office from 1 January 2000 to 31 December 2005. The analysis extends previous research by considering a range of film-specific covariates relating to distribution, production, consumer signals, and weekly performance. In particular, it is shown that film success (defined in a duration context) responds to previewing, advertising, critical reviews, and US box office-but not to production budget, star power or opening-week screens. The study also reveals that it is appropriate to account for unobservable heterogeneity between films in the choice of empirical methodology.
UR - http://www.scopus.com/inward/record.url?scp=71649088925&partnerID=8YFLogxK
U2 - 10.1007/s10824-009-9104-4
DO - 10.1007/s10824-009-9104-4
M3 - Article
AN - SCOPUS:71649088925
SN - 0885-2545
VL - 33
SP - 279
EP - 299
JO - Journal of Cultural Economics
JF - Journal of Cultural Economics
IS - 4
ER -