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

1 Pages Posted: 7 Sep 2010

See all articles by David Waterman

David Waterman

Indiana University - Department of Telecommunications

Andrew A. Weiss

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

Abstract

We study the determinants of the ‘video window’ (the interval between a movie's theatrical and video releases), based on a sample of 1,157 films released on video between 1988 and 1997. For subsets of films having shorter theater run lengths (1 to 17 weeks), windows were generally longer than, and largely invariant to, measures of the time required to exhaust the theater market. One interpretation of our results is that U.S. movie distributors resolved a time consistency problem by coordinating their behavior to maintain longer windows than would have otherwise resulted, but different explanations are also plausible.

Suggested Citation

Waterman, David and Weiss, Andrew A., Time Consistency and Seller Commitment in Intertemporal Movie Distribution: An Empirical Study of the Video Window. The Journal of Industrial Economics, Vol. 58, No. 3, pp. 717-717, September 2010. Available at SSRN: https://ssrn.com/abstract=1672925 or http://dx.doi.org/10.1111/j.1467-6451.2010.00441.x

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

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