Strategic Microscheduling of Movies

36 Pages Posted: 7 Sep 2017

See all articles by Niklas Dürr

Niklas Dürr

ZEW – Leibniz Centre for European Economic Research - Competition and Regulation Research Group

Benjamin Engelstätter

University of Applied Sciences Darmstadt

Michael R. Ward

University of Texas at Arlington - College of Business Administration - Department of Economics; ZEW, Mannheim

Date Written: May 2017

Abstract

We investigate how competition in product niches affects the ultimate timing of product release for experience goods using data on motion pictures in the United States. We identify product niches that movies occupy along three different product dimensions: common actor, common director, and common genre. We estimate the drivers for a motion picture's weekly sales based on the variation in the level of competition in these particular niches over time. We show that release date of motion pictures are more likely rescheduled when there is more competition during the initially proposed release week. Next, we find that competition from movies by the same director or within the same movie genre decrease motion picture's box office revenue most. Finally, we compare a movie’s actual sales to estimated sales at the originally planned release date. Rescheduled movies generate about $6 million more revenue than they would have at their originally proposed release date.

Keywords: Non-Price Competition, Niche Competition, Strategic Timing of Entry, Movie Market

JEL Classification: D22, L21, L82, M31

Suggested Citation

Dürr, Niklas and Engelstätter, Benjamin and Ward, Michael Robert, Strategic Microscheduling of Movies (May 2017). ZEW - Centre for European Economic Research Discussion Paper No. 17-033, Available at SSRN: https://ssrn.com/abstract=3032967 or http://dx.doi.org/10.2139/ssrn.3032967

Niklas Dürr (Contact Author)

ZEW – Leibniz Centre for European Economic Research - Competition and Regulation Research Group ( email )

L7,1
Mannheim, 68161
Germany

Benjamin Engelstätter

University of Applied Sciences Darmstadt ( email )

Max-Planc-Str.
Dieburg, 64807
Germany

Michael Robert Ward

University of Texas at Arlington - College of Business Administration - Department of Economics ( email )

330 Business Building
Box 19479
Arlington, TX 76019
United States
817-272-3090 (Phone)
817-272-3145 (Fax)

ZEW, Mannheim ( email )

D-68034 Mannheim
Germany

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