Featured Research

from universities, journals, and other organizations

Box office success linked to blogging, study finds

Date:
November 20, 2013
Source:
University of Chicago Booth School of Business
Summary:
Though it would seem that studios have little control over public reaction to their movies, a new study reveals some factors that studios can control to boost how their movies perform at the box office, particularly in local markets.

Movie attendance peaks during the holiday season, and studios capitalize on this by releasing dozens of new titles between the end of November and the new year, with much of a movie's box office success predicted by opening weekend.

Related Articles


Though it would seem that studios have little control over public reaction to their movies, a new study by Pradeep K. Chintagunta of the University of Chicago Booth School of Business reveals some factors that studios can control to boost how their movies perform at the box office, particularly in local markets.

The study appeared in a recent issue of Management Science.

Chintagunta, together with Shyam Gopinath of the University of Utah, and Sriram Venkataraman of the University of North Carolina at Chapel Hill, examined the pre- and post-release performance of 75 movies released in 2004 in 208 geographic markets in the United States across three measures: nationwide consumer- generated blog volume; blog "valence" -- a positive or negative sentiment written by a blogger -- and studio advertising.

The study revealed that gender, income, race and age of the local population are the biggest indicators of how a movie will perform in individual markets.

Among the study's most notable demographic findings:

  • Blog readers tend to be young, so the local readership will likely mimic the area's demographics. If the population skews older, blogs will have less impact on moviegoers' behavior.
  • The biggest impact on box office performance is gender. A higher proportion of women in a population lowers box office performance with respect to blog valence and advertising much more than any other demographic feature. Having more women in a market makes it less sensitive to blog sentiments and less sensitive to advertising; having more young consumers in market enhances the impact of blog volume but lowers the effect of blog valence; and high income markets are less responsive to blog sentiments and advertising.

Taken together, these findings suggest that studios engaging in spot advertising may want to reduce their advertising in markets with higher income, as well as those with more women and more young consumers. Furthermore, markets with larger white populations are more sensitive to advertising -- studios might want to direct more advertising in these markets. At the same time, markets with large white populations are less sensitive to blog valence.

Notable findings on specific geographic preferences include:

  • The markets highly responsive to advertising seem to be concentrated in the Midwest, and the markets less responsive to both blogs and advertising seem to be in the East Coast.
  • Several large markets for box office revenues, such as Denver, Los Angeles and Chicago, rank high for being sensitive to "buzz." These same markets, however, are much less sensitive to blog valence and advertising.

These rankings can provide studios with information on how to target release markets, especially if a movie is in limited release. For instance, if a studio wanted to generate pre-release buzz by having special events around a movie, Chicago and Denver would be smart markets to choose. And if a studio wants to market its advertising more judiciously, cities like Charlottesville, Virginia, or Marquette, Wisconsin, are smart bets.


Story Source:

The above story is based on materials provided by University of Chicago Booth School of Business. Note: Materials may be edited for content and length.


Journal Reference:

  1. Pradeep K. Chintagunta, Shyam Gopinath, Sriram Venkataraman. The Effects of Online User Reviews on Movie Box Office Performance: Accounting for Sequential Rollout and Aggregation Across Local Markets. Marketing Science, 2010; 29 (5): 944 DOI: 10.1287/mksc.1100.0572

Cite This Page:

University of Chicago Booth School of Business. "Box office success linked to blogging, study finds." ScienceDaily. ScienceDaily, 20 November 2013. <www.sciencedaily.com/releases/2013/11/131120134028.htm>.
University of Chicago Booth School of Business. (2013, November 20). Box office success linked to blogging, study finds. ScienceDaily. Retrieved November 28, 2014 from www.sciencedaily.com/releases/2013/11/131120134028.htm
University of Chicago Booth School of Business. "Box office success linked to blogging, study finds." ScienceDaily. www.sciencedaily.com/releases/2013/11/131120134028.htm (accessed November 28, 2014).

Share This


More From ScienceDaily



More Science & Society News

Friday, November 28, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Police Swoop on 80 Airports in Global Ticket Fraud Crackdown

Police Swoop on 80 Airports in Global Ticket Fraud Crackdown

AFP (Nov. 28, 2014) Police have arrested 118 people in an unprecedented globally-coordinated swoop on plane ticket credit card fraud, a billion-dollar organised crime industry, officials said Friday. Duration: 01:03 Video provided by AFP
Powered by NewsLook.com
Ebola Leaves Orphans Alone in Sierra Leone

Ebola Leaves Orphans Alone in Sierra Leone

AFP (Nov. 27, 2014) The Ebola epidemic sweeping Sierra Leone is having a profound effect on the country's children, many of whom have been left without any family members to support them. Duration: 01:02 Video provided by AFP
Powered by NewsLook.com
EU Pushes Google For Worldwide Right To Be Forgotten

EU Pushes Google For Worldwide Right To Be Forgotten

Newsy (Nov. 27, 2014) Privacy regulators recommend Google expand its requested removals to apply to all its web domains. Video provided by Newsy
Powered by NewsLook.com
Who Will Failed Nuclear Talks Hurt Most?

Who Will Failed Nuclear Talks Hurt Most?

Reuters - Business Video Online (Nov. 25, 2014) With no immediate prospect of sanctions relief for Iran, and no solid progress in negotiations with the West over the country's nuclear programme, Ciara Lee asks why talks have still not produced results and what a resolution would mean for both parties. Video provided by Reuters
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins