The antecedents and consequences of restrictive age-based ratings in the global motion picture industry

Abstract

This article analyzes one key characteristic shared by a growing number of industries. Specifically, their products and services are continuously monitored and evaluated by local third-party ratings systems. In this study, we focus on understanding the local drivers of restrictive age-based ratings in the motion picture industry and the effect of local ratings on a movie's performance at the box office. The results show that there is a significant negative relationship between restrictive ratings and opening weekend box-office performance. However, we find no significant effect with respect to cumulative box-office performance. In the second part of the study, we focus on the local regulatory system's role as a key driver of restrictive age-based ratings in the motion picture industry. Interestingly, the results suggest that the composition of the board that rates the movie plays a key role. Including pediatrics, psychology, or sociology experts in the evaluation board instead of only parents or laypeople has a strong effect and tends to lead to more lenient rating behavior. In addition, we find that larger ratings boards tend to be more restrictive than smaller ones and that industry representation is not necessarily associated with less restrictive ratings. Countries with cultures characterized as uncertainty avoidant, collective, and feminine also seem to be most lenient in their ratings. The implications of the results are discussed from both international marketing and public policy perspectives.