Web User Opinions as an Information Source. What Impact on Cinema Attendances?

Abstract

Digital communication technologies such as the Internet intensify and accelerate the phenomenon of information diffusion by social exchange. The aim of this paper is to assess whether product introduction strategies should be modified in the light of this phenomenon. We conducted an empirical analysis on the movie market to compare the ability of web user opinions with classic indicators such as the mass media and critics to predict box-office takings. The results show that all three variables influence movie attendances. Promotion of a movie has no influence on web user opinions, but critics are influenced negatively for low-budget movies and positively for large-budget movies. Critic and web user advice merges only for large-budget movies.