Determinants of revenues in the motion picture industry

Abstract

This article examines the determinants of revenue in the motion picture industry. The sample consists of 435 films released during 1965 to 2010. This study finds that the main actor or actress and director in a movie are the most likely determinants of whether or not a movie is a box office success. Further, if the production budget is high and the running time is longer, the probability of success is much greater.

Keywords:

• star power
• director power
• film

JEL Classifications:

• L10; L82