Time Consistency and Seller Commitment in Inter-Temporal Movie Distribution: An Empirical Study of the Video Window

51 Pages Posted: 16 Nov 2007

See all articles by David Waterman

David Waterman

Indiana University - Department of Telecommunications

Andrew A. Weiss

Australian National University (ANU) - Faculty of Economics & Commerce

Sung-Choon Lee

Indiana University Bloomington - Department of Telecommunications

Date Written: September 1, 2007

Abstract

We report an empirical study of determinants of the "video window" (the interval between a movie's theatrical release and its video release), primarily based on a sample of 1429 theatrical feature films released on video in the United States between 1988 and 1997. Results support our primary hypothesis that U.S. motion picture distributors resolved a time-consistency problem by coordinating their behavior to maintain longer windows than would result from a competitive industry in which distributors set windows without regard to their effect on consumer expectations. Results suggest a loosely coordinated window benchmark, slightly declining over the period, of approximately 6 months.

Keywords: time consistency, commitment, video, motion picture, intertemporal price discrimination

JEL Classification: L11, L82

Suggested Citation

Waterman, David and Weiss, Andrew A. and Lee, Sung-Choon, Time Consistency and Seller Commitment in Inter-Temporal Movie Distribution: An Empirical Study of the Video Window (September 1, 2007). Available at SSRN: https://ssrn.com/abstract=1029704 or http://dx.doi.org/10.2139/ssrn.1029704

David Waterman (Contact Author)

Indiana University - Department of Telecommunications ( email )

1229 East 7th Street
Bloomington, IN 47405
United States
812-855-6170 (Phone)

Andrew A. Weiss

Australian National University (ANU) - Faculty of Economics & Commerce ( email )

Canberra, Australian Capital Territory 2601
Australia

Sung-Choon Lee

Indiana University Bloomington - Department of Telecommunications ( email )

1229 East 7th Street
Bloomington, IN 47405
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
100
Abstract Views
798
rank
261,741
PlumX Metrics