Dissecting movie performance across multiple distribution channels: An elastic justification theory perspective

Abstract

The recent emergence of multiple channels such as Internet protocol television (IPTV) and online video-on-demand (VOD) has transformed sequential movie distribution structures into simultaneous ones. We analyze the drivers of movie performance success in terms of box office, IPTV, and online VOD services amid these changed market conditions. We use elastic justification theory and consider diverse consumer risks to explain how movie consumers exhibit different behaviors for different movie channels when facing different degrees and types of risk. We classify the antecedents of movie selection into justifiable (risk-hedging) factors such as viewer rating, scenario familiarity, star power, and country of origin and unjustifiable (tempting and appealing) factors, including expert rating and genre. By considering various types and degrees of risk in each channel based on elastic justification theory, this study offers insights that should lead to more effective movie distribution across channels. This study is a first step toward paving the way for advanced movie distribution strategies for producers and distributors.