Collaborations and Innovation in Partitioned Industries: An Analysis of U.S. Feature Film Coproductions

2023 | Organization Science | Citations: 0

Authors: Jia, Ruo; Lewis, Demetrius; Negro, Giacomo

Abstract: In partitioned industries, a small number of generalist organizations occupy the ... Expand

Abstract: In partitioned industries, a small number of generalist organizations occupy the center of the market, whereas a much larger number of specialists populate the periphery. The role of collaborations within and across the center-periphery boundary in these industries has been underexplored. We propose that hybrid collaborations between organizations in the center and periphery—combining the broad resource base of generalists with the focused knowledge of specialists—encourage product innovation and result in enhanced organizational adaptation for both populations. We test these ideas in the U.S. motion picture industry, where film production companies face significant unpredictability of success and fluctuating audience tastes. We find that generalist and specialist production companies that partner to produce films introduce more creative content in their films compared with those that collaborate in the same population or produce alone. Generalist film companies benefit further from these collaborations through increased competitive differentiation of their films from other generalists in subsequent productions, whereas specialists experience lower exit rates. These findings suggest that interorganizational collaborations between generalists and specialists provide effective adaptive strategies to compete in markets with uncertain demand and shifting audience preferences. These strategies can sustain, rather than weaken, industry partitioning. Funding: This work was funded by an ad hoc research grant from Emory University. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.1600. Collapse

Topics: innovation management online review database system knowledge sharing internet technology

Methods: Internet Movie Database review multidimensional scaling Wald test descriptive statistic regression analysis method

The Impact of Social Movement on Racial Diversification Initiatives: Evidence From the Movie Industry

2023 | HICSS | Citations: 0

Authors: Lin, Y.; Yang, S.; Han, W.

Abstract: The movie industry is facing rising advocacy for racially inclusive casting. Ho ... Expand

Abstract: The movie industry is facing rising advocacy for racially inclusive casting. However, it remains an open question whether the promised benefits of racial diversification will materialize. Using data from 434 movies nested in 178 series released from 1998 to 2021, we find that, on average, increasing the number of racial minority actors in the main cast depresses movie evaluations. More importantly, the negative effect of racial diversification attenuates after Black Lives Matter (#BLM), a new media enabled social movement. Further, incorporating insights from tokenism and discrimination theories, we probe the heterogeneity in the bias mitigation effects of #BLM and find movie type and the core production team's credentials as important boundary conditions. The present research shows that a social movement that seeks to address racial inequality can, indeed, lead to meaningful changes in public opinions toward racial inclusive initiatives. It also provides perspectives for thinking about the mechanisms underlying such changes. Collapse

Topics: online review armed conflict criminality Twitter

Methods: difference in differences Internet Movie Database review

Unifying Algorithmic and Theoretical Perspectives: Emotions in Online Reviews and Sales

2023 | Management Information Systems Quarterly | Citations: 2

Authors: Yu, Yifan; Yang, Yang; Huang, Jinghua; Tan, Yong

Abstract: Emotion artificial intelligence, the algorithm that recognizes and interprets v ... Expand

Abstract: Emotion artificial intelligence, the algorithm that recognizes and interprets various human emotions beyond valence (positive and negative polarity), is still in its infancy but has attracted attention from industry and academia. Based on discrete emotion theory and statistical language modeling, this work proposes an algorithm to enable automatic domain-adaptive emotion lexicon construction and multidimensional emotion detection in texts. Using a large-scale dataset of China's movie market from 2012 to 2018, we constructed and validated a domain-specific emotion lexicon and demonstrated the predictive power of eight discrete emotions (i.e., surprise, joy, anticipation, love, anxiety, sadness, anger, and disgust) in online reviews on box office sales. We found that representing overall emotions through discrete emotions yields higher prediction accuracy than valence or latent emotion variables generated by topic modeling. To understand the source of the predictive power from a theoretical perspective and to test the cross-culture generalizability of our prediction study, we further conducted an experiment in the U.S. movie market based on theories on emotion, judgment, and decision-making. We found that discrete emotions, mediated by perceived processing fluency, significantly affect the perceived review helpfulness, which further influences purchase intention. Our work shows the economic value of emotions in online reviews, generates insight into the mechanism of their effects, and has managerial implications for online review platform design, movie marketing, and cinema operations. Collapse

Topics: online review Python user-generated content microblog marketing management

Methods: computational algorithm word2vec parametric test product review experiment

Theories: psychological theory

The effect of TV drama piracy: An analysis of digital piracy users, internet buzz, and TV drama viewership

2022 | Information & Management | Citations: 0

Authors: Kim, Dongyeon; Park, Kyuhong; Bang, Youngsok

Abstract: Notwithstanding the biggest victim of digital piracy, we have a limited understa ... Expand

Abstract: Notwithstanding the biggest victim of digital piracy, we have a limited understanding of how TV drama piracy affects its legal consumption. Unlike movies or music, TV dramas are typically a series of episodes, where pirated past episodes may not necessarily carry a negative impact on the legal consumption of current episodes. The consumption boosted by piracy can promote Internet buzz, which may draw the attention of potential consumers and may result in broader legal consumption afterward. Based on an empirical analysis regarding the re­ lationships among the viewership of 20 TV dramas broadcast in the US, social media activities on Twitter, Google and YouTube search trends, and the number of BitTorrent users who pirated these TV dramas, we show that although the direct effect of media consumption through BitTorrent to TV viewership is negative, the indirect effect that mediates Internet buzz is positive, which dilutes the negative effect of digital piracy. Such positive effects of digital piracy are more substantial for the second half of dramas, less popular dramas, and serial dramas. We discuss the theoretical contributions and managerial implications of our study. Collapse

Topics: Twitter Google+ internet technology digital piracy YouTube

Methods: instrumental variables estimation data transformation principal component analysis descriptive statistic Internet Movie Database review

The causal effect of subscription video streaming on DVD sales: Evidence from a natural experiment

2022 | Decision Support Systems | Citations: 0

Authors: Yu, Yinan; Chen, Hailiang; Peng, Chih-Hung; Chau, Patrick Y.K.

Abstract: Subscription-based video streaming has recently become the main revenue driver i ... Expand

Abstract: Subscription-based video streaming has recently become the main revenue driver in the home entertainment industry. Whether and how it affects the sales of physical media, which was previously the industry’s largest revenue source for decades, is still not well understood. We answer this question using a natural experiment that occurred on October 1, 2015, when the content owner Epix switched its streaming partner from Netflix to Hulu. This event created an exogenous shock that significantly reduced the streaming availability of Epix’s content because of the difference in the market shares of the two streaming service providers at the time. This occurrence allows us to investigate the causal effect of subscription streaming on physical DVD sales. Our difference-indifferences analysis shows that the decline in the streaming availability of Epix’s content caused an increase of 36.07% in its monthly DVD sales during the 15 months after the event. We also find that the cannibalization between these two channels is much stronger for movies with higher level of content stickiness (e.g., more recent titles, and titles with a general audience (G) or parental guidance (PG) rating or belonging to the children/family genre). Our findings provide important implications for content owners on how to balance physical sales with revenues from streaming licenses. Collapse

Topics: DVD digital service Netflix Hulu streaming service

Methods: experimental group natural experiment Internet Movie Database review longitudinal research robustness check

Social media-driven customer engagement and movie performance: Theory and empirical evidence

2021 | Decision Support Systems | Citations: 0

Authors: Castillo, Ana; Benitez, Jose; Llorens, Javier; Luo, Xin (Robert)

Abstract: Can social media-driven customer engagement help movie producers to increase mov ... Expand

Abstract: Can social media-driven customer engagement help movie producers to increase movie sales? Movie producers use social media to boost customer engagement; however, our understanding of whether there is a relationship between pre-consumption customer engagement and movie sales is limited. This research explores what drives the success of movies on the opening-weekend. We examine the relationship between pre-consumption customer engagement driven by social media (i.e., personal and interactive engagement) and movie performance (i.e., opening-weekend box office revenues). Driven by the debate about the potential capacity of social media-driven customer engagement to improve movie performance and the limited understanding of the association of preconsumption customer engagement and movie performance, this research suggests that social media-enabled customer engagement (i.e., personal and interactive engagement) has the potential to improve movie perfor­ mance, and these two types of engagement can interact to make this effect stronger. We analyze these re­ lationships drawing from the uses and gratifications theory and the social media affordances perspective that motivate customers to interact in social media. The theoretical model evaluation was tested on a unique and original dataset composed of 966 movies released in the U.K. and Spain. The empirical analysis suggests that personal and interactive engagement are positively related to movie performance, and the positive effects of personal and interactive engagement on movie performance are mutually reinforcing. This research contributes to Information Systems (IS) research by theorizing and empirically showing how customer engagement driven by social media creates business value by improving movie performance. Collapse

Topics: social media Twitter Facebook YouTube social media site

Methods: statistical power analysis theory development partial least squares path modeling Internet Movie Database review statistical hypothesis test

Theories: theory of affordance uses and gratifications theory lemon market theory

When Reinforcing Processes Generate an Outcome-Quality Dip

2021 | Organization Science | Citations: 0

Authors: Denrell, Jerker; Liu, Chengwei

Abstract: When does market success indicate superior merit? We show that when consumer cho ... Expand

Abstract: When does market success indicate superior merit? We show that when consumer choices between products with equal prices depend on quality but also on past popularity, more popular products are not necessarily of higher quality. Rather, a medium level of popularity may be associated with lower quality than lower levels of popularity. Using a formal model, we show that this kind of nonmonotonic association occurs when reinforcing processes are strong. More generally, a dip can occur when outcomes depend on both quality and resources and the latter are allocated bimodally, with some being given a lot of resources and most receiving little. Empirically, we illustrate that such a dip occurs in the association between movie theater sales and ratings. The presence of a dip in the outcome-quality association complicates learning from market outcomes and evaluation of individuals and new ventures, challenges the legitimacy of stratification systems, and creates opportunities for sophisticated evaluators who understand the dip. Collapse

Topics: resource allocation online review database system website social influence

Methods: Internet Movie Database review simulation computational algorithm descriptive statistic product review

Investigating the Effects of Dimension-Specific Sentiments on Product Sales: The Perspective of Sentiment Preferences

2021 | Journal of the Association for Information Systems | Citations: 0

Authors: Jiang, Cuiqing; Wang, Jianfei; TANG, Qian; Lyu, Xiaozhong

Abstract: While the literature has reached a consensus on the awareness effect of online ... Expand

Abstract: While the literature has reached a consensus on the awareness effect of online word-of-mouth (eWOM), this paper studies its persuasive effect-specifically, dimension-specific sentiment effects on product sales. We examine the sentiment information in eWOM along different product dimensions and reveal different persuasive effects on consumers' purchase decisions based on consumers' sentiment preference, which is defined as the relative importance that consumers place on various dimension-specific sentiments. We use an aspect-level sentiment analysis to derive dimension-specific sentiment and PVAR (panel vector auto-regression) models, and estimate their effects on product sales using a movie panel dataset. The findings show that three dimension-specific sentiments (star, genre, and plot) are positively related to movie sales. Regarding consumers' sentiment preferences, we find a positive relationship to movie sales that is stronger for plot sentiment, relative to star sentiment for low-budget movies. For high-budget movies, we find a positive relationship to movie sales that is stronger for star sentiment, relative to plot or genre sentiment. Collapse

Topics: online word of mouth word of mouth online review big data knowledge representation

Methods: sentiment analysis product review robustness check natural language processing topic model

Theories: attitude theory

WELFARE PROPERTIES OF PROFIT MAXIMIZING RECOMMENDER SYSTEMS: THEORY AND RESULTS FROM A RANDOMIZED EXPERIMENT

2021 | Management Information Systems Quarterly | Citations: 0

Authors: Zhang, Xiaochen; Ferreira, Pedro; de Matos, Miguel Godinho; Belo, Rodrigo

Abstract: Recommender systems have been introduced to help consumers navigate large sets ... Expand

Abstract: Recommender systems have been introduced to help consumers navigate large sets of alternatives. They usually lead to more sales, which may increase consumer surplus and firm profit. In this paper, we ask whether the firms' choice of recommender system might hurt consumers. We use data from a large-scale field experiment in video-on-demand to measure the price elasticity of demand for movies placed in salient and nonsalient slots on the TV screen. During this experiment, the firm randomized the prices and slots in which movies were recommended to consumers. This setting readily allows for identifying the effects of price and slot on demand, and thus computes consumer surplus. We find that consumers are less price-elastic toward movies placed in salient slots. Using the outcomes of this experiment, we simulate how consumer surplus and welfare change when the firm implements several types of recommender systems, namely one that maximizes profit. We show that this system hurts consumer surplus and welfare relative to a system that maximizes welfare. We also show that, in our setting, the system that maximizes profit does not generate less consumer surplus than several recommender systems frequently used in practice. Yet, the amount of extra rent the firm can extract from strategically placing movies in salient slots is still a function of the popularity and quality of movies used to do so. Ultimately, our results question whether recommender systems embed mechanisms that extract excessive surplus from consumers, which may call for better scrutiny. 1 Collapse

Topics: IS economics consumer surplus recommender system economic surplus online review

Methods: experiment simulation Internet Movie Database review randomized field experiment mathematical model

The Impact of Netflix Streaming on Digital Download and Digital Rental

2020 | International Conference on Information Systems | Citations: 0

Authors: Chen, Hailiang

Abstract: Video on demand (VOD) allows consumers to watch movies and TV shows whenever the ... Expand

Abstract: Video on demand (VOD) allows consumers to watch movies and TV shows whenever they want. Despite their growing importance in revenue generation relative to traditional physical formats in the home entertainment industry, how different VOD channels such as Subscription VOD (SVOD) and Transactional VOD (TVOD) interact with each other is not well studied. This study utilizes a unique dataset by NPD VideoWatch on consumers’ viewing behavior to investigate the relationship between SVOD and TVOD channels. We study naturally occurring events in which a movie title is newly added to the leading SVOD site Netflix and assess how the demand in TVOD channels changes around such events. We provide evidence suggesting that SVOD complements both digital download and digital rental. This study makes an important empirical contribution to the multichannel management literature and provides managerial implications for content owners and streaming service providers on how to better manage VOD channels together. Collapse

Topics: digital service Netflix website online review accounting

Methods: logarithmic transformation regression analysis method Internet Movie Database review robustness check experimental group