Motion picture companies are increasingly providing movies online. We develop a model to examine optimal distribution strategies for the movie studio. The studio can release the movie through the traditional channel (i.e. theatre) or online channel and has to decide the distribution strategy. When the studio is vertically integrated with the exhibitor, our results indicate that in the presence of a relatively low cost of using a traditional channel, the dual-channel strategy exists and generates the highest profit. However, when the cost is relatively high, the online channel strategy becomes the best strategy. When the studio is not vertically integrated with the exhibitor, when the studio’s commission share is low, the studio will adopt the dual-channel strategy if the traditional channel cost is low and the quality difference is large. If not, the studio will adopt the online channel strategy. When the studio’s commission share is moderate, the studio will adopt the dual-channel strategy if the traditional channel cost is low and the quality difference is large, the studio will adopt the dual-channel strategy if the traditional channel cost is low and the quality difference is moderate, otherwise, the studio will adopt the online channel strategy. When the studio’s commission share is large, the studio has more motivation to adopt traditional strategy.
| Published in | International Journal of Economics, Finance and Management Sciences (Volume 8, Issue 1) |
| DOI | 10.11648/j.ijefm.20200801.14 |
| Page(s) | 31-38 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2020. Published by Science Publishing Group |
Movie Studio, Exhibitor, Movie Distribution Channel, Dual Channel
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APA Style
Jingpei Ma, Wenli Li. (2020). Optimal Distribution Strategy for Movie Product. International Journal of Economics, Finance and Management Sciences, 8(1), 31-38. https://doi.org/10.11648/j.ijefm.20200801.14
ACS Style
Jingpei Ma; Wenli Li. Optimal Distribution Strategy for Movie Product. Int. J. Econ. Finance Manag. Sci. 2020, 8(1), 31-38. doi: 10.11648/j.ijefm.20200801.14
AMA Style
Jingpei Ma, Wenli Li. Optimal Distribution Strategy for Movie Product. Int J Econ Finance Manag Sci. 2020;8(1):31-38. doi: 10.11648/j.ijefm.20200801.14
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Download@article{10.11648/j.ijefm.20200801.14,
author = {Jingpei Ma and Wenli Li},
title = {Optimal Distribution Strategy for Movie Product},
journal = {International Journal of Economics, Finance and Management Sciences},
volume = {8},
number = {1},
pages = {31-38},
doi = {10.11648/j.ijefm.20200801.14},
url = {https://doi.org/10.11648/j.ijefm.20200801.14},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20200801.14},
abstract = {Motion picture companies are increasingly providing movies online. We develop a model to examine optimal distribution strategies for the movie studio. The studio can release the movie through the traditional channel (i.e. theatre) or online channel and has to decide the distribution strategy. When the studio is vertically integrated with the exhibitor, our results indicate that in the presence of a relatively low cost of using a traditional channel, the dual-channel strategy exists and generates the highest profit. However, when the cost is relatively high, the online channel strategy becomes the best strategy. When the studio is not vertically integrated with the exhibitor, when the studio’s commission share is low, the studio will adopt the dual-channel strategy if the traditional channel cost is low and the quality difference is large. If not, the studio will adopt the online channel strategy. When the studio’s commission share is moderate, the studio will adopt the dual-channel strategy if the traditional channel cost is low and the quality difference is large, the studio will adopt the dual-channel strategy if the traditional channel cost is low and the quality difference is moderate, otherwise, the studio will adopt the online channel strategy. When the studio’s commission share is large, the studio has more motivation to adopt traditional strategy.},
year = {2020}
}
TY - JOUR T1 - Optimal Distribution Strategy for Movie Product AU - Jingpei Ma AU - Wenli Li Y1 - 2020/02/03 PY - 2020 N1 - https://doi.org/10.11648/j.ijefm.20200801.14 DO - 10.11648/j.ijefm.20200801.14 T2 - International Journal of Economics, Finance and Management Sciences JF - International Journal of Economics, Finance and Management Sciences JO - International Journal of Economics, Finance and Management Sciences SP - 31 EP - 38 PB - Science Publishing Group SN - 2326-9561 UR - https://doi.org/10.11648/j.ijefm.20200801.14 AB - Motion picture companies are increasingly providing movies online. We develop a model to examine optimal distribution strategies for the movie studio. The studio can release the movie through the traditional channel (i.e. theatre) or online channel and has to decide the distribution strategy. When the studio is vertically integrated with the exhibitor, our results indicate that in the presence of a relatively low cost of using a traditional channel, the dual-channel strategy exists and generates the highest profit. However, when the cost is relatively high, the online channel strategy becomes the best strategy. When the studio is not vertically integrated with the exhibitor, when the studio’s commission share is low, the studio will adopt the dual-channel strategy if the traditional channel cost is low and the quality difference is large. If not, the studio will adopt the online channel strategy. When the studio’s commission share is moderate, the studio will adopt the dual-channel strategy if the traditional channel cost is low and the quality difference is large, the studio will adopt the dual-channel strategy if the traditional channel cost is low and the quality difference is moderate, otherwise, the studio will adopt the online channel strategy. When the studio’s commission share is large, the studio has more motivation to adopt traditional strategy. VL - 8 IS - 1 ER -
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