Cinema Demand in Spain: A Cointegration Analysis

In this paper we explain the decline in cinema attendance in Spain since 1968. We use a cointegration analysis to estimate an individual demand function for cinema, with annual data and in terms of average attendance per inhabitant. We find that cinema is a luxury good and that its demand is elastic with respect to its price. We also show that television acts as a deterrent with regard to cinema attendance. This revised version was published online in August 2006 with corrections to the Cover Date.     

Motivation,satisfaction and loyalty in the case of a film festival: differences between local and non-local participants

The last few years have seen a remarkable increase in the number of cultural events and festivals. The increasing competitiveness among them and the need to safeguard their future viability make it necessary to identify factors that not only attract and satisfy new participants, but also retain previous attendees. Accordingly, this article examines the relations between motivation, satisfaction and loyalty in the case of a cinema event the Valdivia International Film Festival (Chile), distinguishing, in turn, between local attendees and visitors. To achieve this goal, a structural equation modelling is performed based on the data obtained through a survey conducted among festival attendees. The results show there are different motivations for attending a festival (leisure, professional motives and cinema) and that some directly affect satisfaction and loyalty. Similarly, satisfaction is presented as an unquestionable antecedent of loyalty, the latter being measured by means of different concepts. Finally, the research highlights some significant differences between residents and tourists and seems to point to the existence of a kind of cultural tourism focused on an interest in the cinema, which contributes to the festival’s continuity and sustainability. All of this allows us to extract some implications for the managers of this type of event and for those responsible for the destination’s cultural and tourist policy.     

Commercial success and artistic recognition of motion picture projects

This article introduces a model derived from the relational view of strategy to investigate (1) the impact of track record and financial resources on the commercial success and artistic recognition of cinema projects, and (2) the relationship between the commercial and artistic dimensions of film performance. Structural equation modeling carried out on 2,080 feature films released in the North-American theatrical market from 1988 to 1997 illustrates the mediating role of financial resources as catalysts of commercial and artistic track record resources, and unearths important conclusions relative to the specific dynamics of resource combinations in cinema projects. Results also reveal a novel hierarchy of lead actors, directors, and producers in the explanation of film performance. Last, they confirm the precedence of commercial success in the USA, and the symbolic and institutional status of US cinema as being primarily an industry.     

It’s not the economy, stupid! External effects on the supply and demand of cinema entertainment

The paper addresses whether the state of the economy impacts the supply of and demand for cinema entertainment. A literature review on the drivers of cinema supply and demand is provided, and two competing hypotheses are extracted. Economic downturns could either lead to a sober mood and drive the interest in serious genres or drive the need for distraction leading to an increased interest in feel-good or action movies. However, characteristics of the movie industry suggest that economic key factors have only limited effects on supply and demand. A time series analysis of supply and demand in three major European markets indicate that demand is unrelated to the state of the economy. In aggregate, the demand does not instruct supply. Fluctuations in individual movie quality superpose potential effects of the economic context on the aggregated demand. Simultaneously, a focus on film as art superposes potential effects of the economic context on the supply.     

The cinematic mode of production: towards a political economy of the postmodern

Cinema marks a profound shift in the relation between image and text – indeed it is the watershed of the subjugation of language by image. Cinema as an innovative shift in both industrial capitalism and cultural practice marks, therefore, the restructuring of language function in accord with the changing protocols of techno-capitalism. The ‘talking cure’, otherwise known as psychoanalysis, is itself a symptom of cinema. As a precursor for TV and computing and Internet, cinema transacts value transfer across the image utilising a production process that can be grasped as founded under the rubric of what I call ‘the attention theory of value’. The deterritorialised factory that is the contemporary image, is an essential component of globalisation, neo-imperialism, and militarisation, organising, as it were, the consent (ignorance of) and indeed desire for these latter processes. Thus ‘cinema’, as a paradigm for image-mediated social production, implies a cultural turn for political economics. It also implies that it is the interstitial, informal activities that transpire across the entire surface of the socius as well as in the vicissitudes of the psyche and experience that are the new (untheorised) production sites for global capital – and therefore among the significant sites for the waging of the next revolution.     

Explaining Post-War Cinema Attendance in Great Britain

This paper models the interaction between cinema admissions and cinema supply in response to changes in exogenous variables, chiefly competition from television viewing. The relationship is estimated empirically by applying near Vector Autoregression (VAR) techniques to a long run of British annual data from 1950 to 1997. The results indicate that sustained negative shocks to cinema demand throughout most of the period reduced the supply of screens, inducing further falls in admissions and closures until a new equilibrium was attained. More recently, the introduction of multiplex cinemas has interrupted and partially reversed this downward demand-supply spiral.     

Thawing the North: Mostly Martha as a German-Italian Eatopia

Abstract

The establishment of the European Union, reunification of Germany, and Germany's extension of dual citizenship to immigrant minorities provided challenges to the country's understanding of itself as a nation. In negotiating these changes, debates on citizenship frequently centered on definitions of German culture. Using the concept of Leitkultur (guiding culture), conservatives argued that Germany should reject multiculturalism and stem immigration. This essay analyzes discourses on cultural policy in Germany through a contextual and textual analysis of the film Mostly Martha. In its alignment with aesthetic conventions of the art house food film, Mostly Martha participates in the debate on cultural citizenship and embodies changes in the German film industry that have moved German cinema toward increased commercialism. The film's main character, Martha, is transformed through an intercultural relationship and a trip to Italy. We argue that the film's citation of this well-known tradition of traveling south to redeem oneself and its treatment of ethnic “Otherness” engages in the Leitkultur debate and participates in the transition from national German to transnational cinema. Through the utopian treatment of Italian food, the film fetishizes cultural difference and reaffirms fixed constructs of nation and gender, thereby avoiding an explicitly politicized engagement with intercultural citizenship and identity.     

Cinema Demand In Germany

This paper examines the German cinema market using time series data covering the period 1950–2002. Applying estimation techniques such as OLS, 2SLS and SUR, we identify interrelations between the number of seats, the average real prices and the demand for movies per capita. Furthermore, we test for the long-run relationship between demand, prices and real income and estimate the elasticity of demand with respect to these variables.JEL–Classification: C22, C23, L82     

Mobile consumers and the retail industry: the resistible advent of a new marketing scene

ABSTRACT

Over the last ten years, marketing professionals have invested in various devices aimed at digitalizing the point of sale. Mobile phones, and the connection they open between the digital and physical worlds, are likely to profoundly renew the way organizations build the representations of consumers upon which they operate. This article aims to describe the new, mobile-based market infrastructure that is currently being implemented; the figures of the consumer it builds on and renews for marketing purposes; and the opportunities it offers to create a new marketing scene. We address this question by focusing on the world of physical retail. We show that online commerce websites and http cookies have enabled a connection between three traditionally separate figures of the consumer and associated marketing scenes: the consumer as an audience, as a shopping cart, or as a (loyalty) card. The smartphone carries the promise of pursuing this movement into store aisles. We show, however, that the domestication of physical geography to cultivate mobile consumers is particularly difficult, and so far based on a series of disparate attempts and experiments.     

The Performance of German Motion Pictures,Profits and Subsidies: Some Empirical Evidence

This paper pursues three objectives. First, it seeks to identify the determinants of performance of German motion pictures in terms of cinema admissions and producers’ rates of return. Second, against the background of heavy subsidization of the German film industry, it discusses two types of subsidy allocation: committee principle allocation and reference principle allocation. Third, the profitability of the industry is considered as the presumed economic non-viability of the industry constantly recurs in the public debate as an argument for subsidies.     

Cross-border circulation of films and cultural diversity in the EU

This paper explores new data sources on multilateral trade in films among EU countries and with the USA in offline cinema and in online video-on-demand distribution. We observe variations in trade patterns across countries and films and explore how they affect cultural diversity. We find that the EU film market is highly fragmented and cross-border film availability in cinema is low. We explore different aspects of the cultural discount hypothesis by means of a standard Helpman and Krugman (Market structure and foreign trade. Increasing returns, imperfect competition, and the international economy, MIT Press, Cambridge, 1985) trade model with economies of scale and a two-stage Heckman (Econometrica 47(1):153–161, 1979) estimation procedure. Our results show that cultural distance, success in the home market and the size of the film budget influence trade of films between countries. US films have a lower propensity to get into export markets, relative to their success in the home market. Consumer demand for imported films is relatively smaller in large EU economies, except for films imported from the USA that are only marginally affected. We also show that trade patterns in online film distribution are not fundamentally different. As online distribution occurs downstream from theatrical release, online distributors can benefit from cinema market experience to make a better selection of films. This results in a lower impact of domestic market shares on online trade patterns.     

An empirical study of the determinants of revenues and marketing expenditures in the motion picture industry

This paper presents an empirical study of the determinants of a motion picture's financial success. Among the many factors which are included in this study, we find that quality and marketing expenditures are important determinants. Film ratings, production cost, and the presence of star performers are only important determinants when marketing is not included. We find that marketing expenditures are positively related to production costs, winning Academy Awards and the presence of major stars.Claremont McKenna College and Wayne State University respectively. Our thanks to Professors Eleanor Brown and Ken Inman for many valuable suggestions.     

Optimal timing of movie releases in ancillary markets: The case of video releases

The optimal time for the release of a film in the video market is derived theoretically and shown to depend on characteristics of its cinema performance and on several other parameters. It is empirically confirmed that the model can explain the changing film release patterns in the years of video market growth. The model can also be applied to other ancillary markets for motion pictures as well as to paperback releases of books.     

Marketing and the Fine Arts – Inventory of a Controversial Relationship

This study concentrates in part on the market of fine arts. First, fine arts will be defined from a marketing point of view and peculiarities in the market of fine arts will be analysed empirically and theoretically. Certain aspects of marketing theory are discussed regarding their significance for the fine arts. Results of an empirical study of galleries and artists will be presented. It will be shown, whether and how artists are involved in marketing, how successful they are and what prerequisites to marketing the artists have.     

The Distribution and Predictability of Cinema Admissions

Using a time series data set covering the period 1936–1999, this paper investigates the statistical distribution of cinema admissions and attempts to produce a forecasting model using the ARIMA methodology.     

A microeconometric study of theatre demand

We develop a model of theatre demand with learning by consuming, and test some of its implications on a large random sample of theatregoers and non-theatregoers. This seems to be the most comprehensive econometric study of demand for the theatre from individual data. We hypothesize that each time the consumer watches a play, he experiences a degree of pleasant or unpleasant surprise on the basis of which he will revise his future expectations of his own taste. The learning phase is likely to be unusually long for highly differentiated cultural goods. Our set of data contains unique information about the full price and the fixed cost of theatre, the objective quality of the outing, past experience of and taste for the theatre, and consumption of substitute leisure activities such as reading, television and cinema. Our methodology and data enable us to infer price elasticity on survey data from knowledge of theatregoing experience and taste. After controlling for many variables, we conclude that demand for the theatre is price-elastic, which contradicts previous estimates on aggregate time-series data. Moreover, we estimate demand conditional on past attendance after controlling for selectivity bias. Satisfaction reported by consumers after the last play is also estimated and interpreted as an ordinal conditional choice.     

Economies of Expertise: Consultants and the Assemblage of Culture

Consultants have emerged as significant actors in the assembling of culture after neoliberalism. This paper considers their role in the assemblage of the British subsidised cultural sector as part of the assembling of culture more generally. In particular, it is concerned with the status of consultants as private sector actors, which differentiates them from other forms of expertise that tend to be located in the state apparatus, in that they must earn money to resource their work and remain solvent. By placing their work of assemblage in relation to this imperative, we can understand the difference it makes. Based on a close study of a London cultural consultancy, it is argued that specific governmental and managerial trends send trajectories of value through the assemblage which the networked consultants attempt to control and capture. These economies have seen consultants contribute to the broad shift in the assemblage of culture from something that occupied a distinctive sphere requiring protection from the ravages of the market to a potential contributor to economic and social development.     

Baumol’s cost disease,efficiency, and productivity in the performing arts: an analysis of german public theaters

This paper analyzes the productivity development in the German public theater sector for the seasons 1991/1992 to 2005/2006. Using a stochastic distance frontier approach that allows decomposing total factor productivity change into different sources, we examine (a) whether Baumol’s cost-disease hypothesis is valid in this sector and (b) if so, whether any negative influence of the cost-disease effect on productivity can be compensated by efficiency gains. The findings indicate an increase in real unit labor cost as a result of rising wage rates and thus do support the cost-disease hypothesis. Further, increasing returns to scale are observed for the majority of the theaters, implying that significant efficiency gains can be realized by the exploitation of scale economies. However, because of the increasing unit labor cost and an increasing scale inefficiency, we find an overall decrease in average productivity of about 8% within the sample period.     

Effects of the “Gangnam Style Syndrome” on the South Korean stock market

This study attempts to answer two questions. First, can a single cultural event impact the stock prices of a wide range of companies and sectors? Second, was the positive stock market response in the information technology (IT) sector as well as performing arts sector significant? To answer these questions, we examine whether a hit pop single, “Gangnam Style” by Park Jae-Sang in 2012, affected related sectors of the Korean stock market and whether market reactions went beyond the stock price of the singer’s agency to affect those of other firms. We use an event study approach. The results show two notable empirical findings. First, although the findings indicating abnormal returns and cumulative abnormal returns appear mixed, the overall results imply that the unprecedented worldwide hit single by the South Korean singer positively affected the Recreation & Culture and Digital Content sectors. In other words, the market interpreted the event as good news, with shareholders expecting positive effects on the related sectors. Second, a positive stock market response was observed in the IT sector as well.     

Mediating the Ethics of Technology: Hollywood and Movie Piracy

This essay invites readers to re‐examine the cultural meaning of movie piracy in the context of Hollywood's global domination of world cinema. It focuses on VCD piracy in Asia. This popular low‐end technology interrogates and deconstructs the technological fetishism that dominates contemporary Hollywood productions. This essay asks whether and how movie piracy can be theorised to yield a more productive understanding of technology as people's corporeal experience of the material world in a socially constructed political economy.