How Long to Squeeze the Creative Juice? An Empirical Study of the Impact of Movie Production Timing on Financial Performance

30 Pages Posted: 19 Apr 2013 Last revised: 26 Apr 2013

See all articles by Tom Tan

Tom Tan

Southern Methodist University (SMU) - Information Technology and Operations Management Department (ITOM)

J. Eliashberg

University of Pennsylvania - Marketing Department

Kartik Hosanagar

University of Pennsylvania - Operations & Information Management Department

Date Written: April 18, 2013

Abstract

We empirically examine the financial impact of production duration in a multi-stage production process for creative products. In particular, we analyze a novel data set from the movie industry to shed light on how the total production time and duration of individual stages affects box office revenues. We find that total production time is negatively associated with box office revenues. In particular, 1% additional total production delay may lower box office revenues by approximately 0.94% on average. In terms of the individual production stages, the duration of the post-production and distribution phases are critical, since both are negatively associated with box office revenues. Our study can help studios better understand how to prioritize production planning and minimize the negative impacts of production delays.

Keywords: operations/marketing interface, the movie industry, creative industries, product development process

Suggested Citation

Tan, Tom and Eliashberg, Jehoshua (Josh) and Hosanagar, Kartik, How Long to Squeeze the Creative Juice? An Empirical Study of the Impact of Movie Production Timing on Financial Performance (April 18, 2013). Available at SSRN: https://ssrn.com/abstract=2253746 or http://dx.doi.org/10.2139/ssrn.2253746

Tom Tan (Contact Author)

Southern Methodist University (SMU) - Information Technology and Operations Management Department (ITOM) ( email )

Dallas, TX 75275
United States

Jehoshua (Josh) Eliashberg

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States

Kartik Hosanagar

University of Pennsylvania - Operations & Information Management Department ( email )

Philadelphia, PA 19104
United States

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