Talking about Films: Word-of-Mouth Behavior and the Network of Success Determinants of Motion Pictures

Abstract

Recent studies analyze word-of-mouth (WOM) communication as a force that drives the success of motion pictures. The authors build upon that research and integrate measurements of WOM into a broader network of success determinants. Results show that production costs and critics’ evaluation are predictors of WOM volume at the end of the first week. No effect is observed for star power and advertising expenditures. WOM volume at the end of the first week is a major predictor of short-term theatrical box office revenues, which strongly affect long-term revenues. The authors conclude that WOM volume after opening week is positively influenced by WOM volume preceding that week, by advertising expenditures, by critics’ evaluation, by awards, and by length of runtime, but not by short term revenues. Surprisingly, WOM volume after the first week appears to be unrelated to long-term revenues. The authors explore the theoretical and managerial implications of these results.