Seasonality in the Non-U.S. Motion Picture Industry: A Case of South Korea

Journal of Media Economics, 27(1), 38-55, 2014

Posted: 5 Nov 2014 Last revised: 6 May 2015

See all articles by Joonhyuk Yang

Joonhyuk Yang

University of Notre Dame - Mendoza College of Business

Wonjoon Kim

Korea Advanced Institute of Science and Technology (KAIST)

Date Written: November 4, 2014

Abstract

In the international motion picture market, when making strategic decisions about the timing of release, it is important to consider the product's country of origin as well as demand seasonality because of their cultural orientation. However, the fluctuation patterns of underlying demand for international market have not been distinguished from that of United States' domestic market. Here, we analyze patterns of the decay effect, which represents the diminishing attractiveness of a movie over the product life cycle, and the seasonality of underlying demand for Hollywood and non-US local movies in a non-US market. We find a positive effect of US holidays on the seasonality of underlying demand for Hollywood movies in the non-US movie market, and a negative effect for non-US local movies. The authors also find that the decay effect for Hollywood movies in the non-US market is greater than that for non-US local movies. These findings contribute to our understanding of the effect of country of origin on product life cycle and the seasonality of underlying demand, especially in movie-importing countries where local and Hollywood movies compete.

Keywords: seasonality, motion picture, movie, Hollywood

JEL Classification: L82

Suggested Citation

Yang, Joonhyuk and Kim, Wonjoon, Seasonality in the Non-U.S. Motion Picture Industry: A Case of South Korea (November 4, 2014). Journal of Media Economics, 27(1), 38-55, 2014, Available at SSRN: https://ssrn.com/abstract=2519016

Joonhyuk Yang

University of Notre Dame - Mendoza College of Business ( email )

Notre Dame, IN 46556-5646
United States

Wonjoon Kim (Contact Author)

Korea Advanced Institute of Science and Technology (KAIST) ( email )

291 Gwahak-ro
Yuseong-gu
Daejon, 305-701
Korea, Republic of (South Korea)
+82-42-350-4336 (Phone)

HOME PAGE: http://wjkim.kaist.ac.kr

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