Relation between the releasing strategy and the domestic rentals on the U.S. Major Film

Abstract

Research on Hollywood film has increased noticeably in recent years. However, while some studies are available on literature review and qualitative analysis, little information is available on empirical study and quantitative analysis, above all, considering the relation between the releasing strategy and the rental revenues on the U.S. major film. Thus, this work used the hierarchical linear modeling to consider this relation. Overall, the results indicated that the advertising expenditures and the recreation as % of disposable income positively related to the domestic rentals. Thus, this work suggests that the majors should not only adopt the marketing and advertising strategy for improving the marketability and rentals of film, but also pay attention to the other macroeconomic variables that could contextually affect the box office.