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.