Art versus commerce in the movie industry: a Two-Path Model of Motion-Picture Success

Previous studies of the movie industry have raised questions concerning the problematic relationship between the success-related aspects of artistic excellence and commercial appeal. The present article proposes that—when the former is measured by industry recognition (Oscars and other awards) and the latter by market performance (box office and video rentals) and when the former hinges on the evaluative judgments of reviewers and consumers (ratings of excellence) and the latter on the level of buzz among these audience members (amount of attention, word of mouth, or click of mouse)—the two phenomena are essentially separable as independent paths to conceptually distinct and empirically uncorrelated aspects of motion-picture success. An analysis of data for 190 movies from the year 2003 shows that reviewer-and-consumer evaluations and buzz respond differently to a film’s marketing clout (production budget, opening screens, and opening box office) and that these audience responses contribute independently to a film’s industry recognition and market performance along two separable paths. These findings suggest various implications for movie marketers, film producers, actors or actresses, and other members of the motion-picture industry.

On the role of critics in the culture industry

Despite a substantial literature on the economics of the arts, there has been virtually no analysis of the role of criticism in the market for the arts. This paper discusses a number of problems which emerge in attempting such an analysis.     

The Strange Meshing of Impersonal and Personal Forces in Technological Action

Abstract

Many critical approaches ascribe a deficit of meaning to technology. The theory of technological action developed in the paper treats technology as an important, eventful terrain for collective life. Drawing on Michel Foucault’s idea of problematisation, it places contemporary technological actions in settings suffused by power relations. It finds in the work of Gilbert Simondon ways of explaining how technological action overflows social norms, forms, identities and structures. Based on analysis of processes of abstraction and concretisation in a spectrum of symptomatic examples, it contends that cultural theory should develop understandings of the potentials that give rise to technological acts as a way of being with others. The paper suggests how cultural theory can engage with the specificities of these actions.     

The dynamics of product differentiation in the British record industry

The paper conducts a statistical analysis of the dynamics of the sale of new music (product differentiation innovation) in the record industry. In pursuing this goal the paper generates new data and analyses a previously unutilized data set. The paper finds that there is a strong correlation between new music innovation in the audio singles and albums market. This is found to be mainly concurrent in the same quarter and to have a reasonably short product life. The paper discovers that these features also characterise the dynamics of record company performance. The research indicates that record companies are willing to sell singles at a loss due to advertising rather than learning externalities. At the industry level, the paper finds that new music innovation does not effect market size significantly and mainly causes business stealing effects between record companies, with exceptional cases of multiplier effects.     

How effective are international copyright conventions in the music industry?

The paper is concerned with the issue of whether international copyright legislation is effective in curbing audio software counterfeiting. The paper finds that copyright conventions have not been effective in reducing audio counterfeiting to comparatively low levels. This result holds even when allowances are made for the duration of copyright convention membership and the specificity of the articles of the convention. Economic development is found to be the main determinant of low counterfeit levels. This would tend to support anecdotal evidence which indicates that economic development is a necessary condition for the active recognition of audio property rights by the general public, judiciary and police. It is also consistent with a view that pirate audio software, being an inferior good, has a more buoyant market in less developed economies. From a policy perspective the research would seem to suggest that the extensive efforts and copious attention to detail by legal experts has made little impact on counterfeit activity and is secondary in importance to the socio-economic environment in which these laws are being applied.     

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.     

Blockbusters and market expansion: evidence from the motion picture industry

Like other cultural industries, the theatrical film industry is subject to the ‘blockbuster effect’, where popular products often dominate their competition by orders of magnitude over relatively short-run time horizons. This paper investigates this particular feature of the industry and the implication for overall market size. Using simple regression analysis, a positive relationship between (product-level) market concentration and market size is established using weekly box office revenue data from the US motion picture industry. This empirical evidence supports a simple theoretical model of heterogeneous consumers who selectively participate in the market.