Distribution conventionality in the movie sector: an econometric analysis of cinema supply

Abstract

This paper empirically analyzes the impact of several factors on a 'conventionality index' in the specific context of the cinema exhibition sector. To our knowledge, it is the first time that a standard conventionality index has been constructed for this purpose. Econometric analysis of the determinants of variation in this index provides decision-makers with an empirical focus for analyzing distributional aspects of the movie exhibition market, with particular emphasis on product differentiation. Specifically, (i) do cinemas based in a city area have a different or 'specialized' focus in contrast to cinemas in small towns? Or, (ii) do multiplexes have a different or more specialized focus in comparison with cinemas? To this end, cross-sectional econometric models are estimated to help analyze these effects in three Italian regions for a sample of cinemas covering the 2006 season. JEL classification: C2; D2; Z1.

The Economics of Movies: A Literature Survey

“…Collins et al (2009) examine product differentiation of programming decisions in a study of Italian cinemas. Their sample consists of a sample of 282 cinemas with 870 screens observed across three Italian regions (Piemonte, Lazio and Campania) during 2006.…”

Theatre allocation as a distributor’s strategic variable over movie runs

“…13 The timing of entry is among the most important factors of success for short life-cycle products (Calentone et al 2010;Elberse and Eliashberg 2003;Gutierrez-Navratil et al 2014). Alternative factors may be the decision between nationwide or platform releases (Chen et al 2013) or product differentiation across local competitors (Collins et al 2009). 14 The major peaks in the average weekly box-office revenues coincide with all the celebrations nationwide.…”

Repertoire Conventionality in Major US Symphony Orchestras: Factors Influencing Management's Programming Choices

“…We constructed an index value in a way similar to the conformity index developed by DiMaggio and Stenberg (), which has been widely used in numerous studies to examine an organization's repertoire diversity. Studies that estimated a conformity index with a similar technique have examined decision making in profit (Collins et al ., ) and nonprofit (Pierce, ; Heilbrun, ; O'Hagan and Neligan, ; Neligan, ; Pompe et al ., ) industries. To construct the index value, we calculated the average number of times a work performed by one SO is performed by all SOs .…”

“…As is common in the literature cited earlier (Pierce, ; Heilbrun, ; O'Hagan and Neligan, ; Neligan, ; Collins et al ., ; Pompe et al ., ), we included variables to adjust for socioeconomic and demographic conditions specific to the city in which the SO is located. Larger populations (Population) would provide a larger audience base, which may allow greater experimentation.…”