Impact of Star and Movie Buzz on Motion Picture Distribution and Box Office Revenue

Abstract

This study contributes to research on the impact of consumer buzz on movie distribution and box office success by examining the impact of buzz generated about the individual stars and about the movie itself. The results indicate that movie buzz is instrumental in boosting box office revenue throughout the theatrical release, not just in the later run as has been suggested in previous studies. Star buzz enhances opening week box office receipts and contributes to the overall movie anticipation (or pre-release movie buzz). However, it can also have a negative impact on revenue during subsequent weeks if the underlying movie fails to resonate with audiences. Model simulations reveal that even for poorly received films, the overall impact of star buzz is positive because the initial revenue boost normally outweighs the later decline. Therefore, the study empirically demonstrates the positive impact of star buzz on revenue, which helps shed light on the long-standing debate regarding the importance of star participation for motion picture success.

Keywords: Star Buzz, Movie Buzz, Cyber Buzz, Motion Pictures, Star Power, Internet Search Data, WOM, Movie Ratings, Search Data, Consumer Ratings

JEL Classification: M31