Gesmer et al. (2007) "The impact of film reviews on the Box Office performance of art house versus mainstream motion pictures

13 important questions on Gesmer et al. (2007) "The impact of film reviews on the Box Office performance of art house versus mainstream motion pictures

What do the authors propose?

That consumers of art house movies are being led by film reviews when making a film choice, whereas consumers of mainstream movies rely mainly on other sources of information

What do the authors study?

The effect of reviews on the opening weekend and on the cumulative box office revenue

Which two basic roles can film reviews play?

  1. The influence effect
  2. The prediction effect
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What is the influence effect?

Film reviews can actively influence consumers in their selection process

What is the prediction effect?

Film reviews can forecast whether a movie will become a success or not

What are these other sources of information?

word-of-mouth, the participation of movie stars, and/or movie advertising

How are mainstream movies labeled?

Major

How are arthouse movies labeled?

Independent

When do the reviews have an influence effect?

Thus, if the relation between reviews and box office revenue is the strongest in the first week and after that it diminishes, the reviews have an influence effect.

When do the reviews have a prediction effect?

If the relation with late and cumulative box office receipts is the most significant, a prediction effect is present.

What do the authors hypothesize about this?

That reviews on mainstream movies do not influence film demand, put predict it. And reviews on art house movies will have an influence effect on film demand

What is the difference in signalling properties of mainstream and art house movies?

Mainstream movies tend to have a high-profile cast (popular stars and directors with mass appeal), special effects, exotic locations and/or elaborate sets. These signaling properties may reduce consumer uncertainty about the quality of a movie. Art house movies, on the other hand, generally have poor ‘‘signaling properties’’ and thus lack the ingredients that can be used to ‘‘sell’’ the movie to the public.

What are the effects reviews seem to have on the mainstream film demand?

  • No influence effects with respect to the nature, size, or number of reviews
  • Prediction effects with respect to the number and size of the film reviews

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