• Journal of Distribution Science
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• v.14 no.10
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• pp.147-152
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• 2016

Purpose - High quality films are affected by both the production stage and various variables such as the size of the movie investment and marketing that changes consumers' perceptions. Consumer preferences should be recognized first to ensure that the movie is successful. If a film is produced without pre-investigation and analysis of consumer demand and taste, the probability of success will be low. This study investigates the balance of production costs, marketing costs, and profits using game theory, suggesting an optimization strategy using the simplex method of linear programming. Research design, data, and methodology - Before the release of the movie, initial demand is assumed to be driven largely by marketing costs. In the next phase, demand is assumed to be driven purely by a movie's production cost and quality, which might also further determine consumer demand. Thus, it is essential to determine how to distribute pure production costs and other costs (marketing) in a limited movie production budget. Moreover, it should be taken into account how to optimally distribute under the assumption that the audience and production company's input resources are limited. This research simplifies the assumptions for large-scale and relatively small-scale movie investments and examines how movie distribution participant profits differ when each cost is invested differently. Results - When first movers or market leaders have to choose both quality and marketing, it has been proven that pursuing a strategy choosing only one is more likely than choosing both. In this situation, market leaders should maximize marketing costs under the premise that market leaders will not lag their quality behind the quality of second movers. Additionally, focusing on movie marketing that produces a quick effect while ceding creative activity to increase movie quality is a natural outcome in the movie distribution environment since a cooperative strategy between market competitors is not feasible. Conclusions - Government film development policy should ignore quality competition between movie production companies and focus on preventing marketing competition. If movie production companies focus on movie production quality improvement then a creative competition would ensue.

• Asia Marketing Journal
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• v.15 no.1
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• pp.43-55
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• 2013

Since movies are experience goods, consumers are easily influenced by other consumers' behavior. For moviegoers, box office rank is the most credible and easily accessible information. Many studies have found that the relationship between a movie's box office rank and its revenue departs from the Pareto distribution, and this phenomenon has been named "increasing returns to information." The primary objective of the current research is to apply the empirical model proposed by De Vany and Walls (1996) to the Korean movie market in order to examine whether the same phenomenon prevails in the Korean movie market. The other purpose of the present study is to provide managers with useful implications about the release timing of a movie by finding different curvatures that depend upon seasonality. The empirical test on the Korean movie market shows similar results as prior studies conducted on the U.S., Hong Kong, and U.K. movie markets. The phenomenon of increasing returns is generated by information transmission among consumers, which makes some movies become blockbusters and others bombs. The proposed model can also be interpreted in such a way that a change in the rank has a nonlinear effect on the movie's performance. If a movie climbs up the chart, it would be rewarded more than its proportion. On the other hand, if a movie falls down in the ranks, its performance would drop rapidly. The research result also indicates that the phenomenon of increasing returns occurs differently depending on when the movies are released. Since the tendency of the increasing returns to information is stronger during the peak seasons, movie marketers should decide upon the release timing of a movie based on its competitiveness. If a movie has substantial potential to incur positive word-of-mouth, it would be more reasonable to release the movie during the peak season to enjoy increasing returns. Otherwise, a movie should be released during the low season to minimize the risk of being dropped from the chart.

• The Journal of the Korea Contents Association
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• v.21 no.8
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• pp.69-78
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• 2021

With technological development including digitization, movie demand and supply in digital online movie market are increasing. This study aims to explore demand concentration of the digital online movie market, which is characterized by product variety compared to cinemas. Major findings of the empirical analysis on the TV VOD data during the recent seven years(2013 ~ 2019) are as follows. First, the analysis on 1,137 titles reveals that movie demand of theatrical market is more concentrated than that of TV VOD. Second, absolute long tail index of TV VOD, measured by the download number of indie & artistic movies(niche product), is increasing as more such movies are released in the market. However, both relative long tail index, measured by the share of indie & artistic movie demand, and top-ranked movies' share do not show consistent increase or decrease trend. Third, regression analysis exhibits that the relationship between demand concentration and market size is insignificant for TV VOD market. This study might have usefulness in that it provides empirical evidence for the nature of the Korean digital online movie market.

• Journal of Distribution Science
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• v.13 no.10
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• pp.109-114
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• 2015

Purpose - The movie market has the characteristics of being a perfectly competitive market as well as a pure monopolistic market at the same time. This is because there are competitors in the industry but prices, although not fixed, have not changed a lot. Price competition may not have spread, but the competition is focused on artistic value, and the degree of box office success is most important. The artistic value is determined in the course of the production process. However, the degree of box office success is dependent upon the marketing manager. The marketing strategy represents the difference in the standard or quality of the movie. Inherently, the marketing manager adopts the entertainment strategy based on the quality of the foundation of the completed movie. At this time, the marketing manager knows the pertinent information (high quality/low quality) regarding the movie. This research study tries to reveal what should be the reasonable movie marketing expense, dependent on the quality of the movie. Research design, data, and methodology - Using a game scenario with different market players, the goal of the research analysis is to find out the following. First, the marketing expense is determined to maximize the profits after film production. Second, after the production costs are already committed, the manufacturer gets to choose the marketing level. At this time, there will be a profit maximization point, considering the competition. The premise of the research is as follows: if it is a good movie of quality, positive word of mouth increasing the audience continuously slows down the speed of the demand curve. If the movie quality is bad, the negative word of mouth decreasing the audience gradually hastens the speed of the demand curve. On the marketing side, when the manufacturer invests heavily in the marketing expense of the movie, consumer expectations increase to drive up the audience numbers. On the other hand, it is difficult to improve the profits excessively. When the manufacturer invests in marketing a little bit, the marketing expense is only relatively committed, therefore a lot of demand cannot be gained. Results - If a fixed market share is in a competitive situation, a low quality manufacturer expends relatively more marketing expense. If the situation assumes two manufacturers spend the same for the cost of production, the high quality manufacturer takes more profit. If the manufacturer expends less marketing budget to save costs, the optimum profit cannot be achieved since the other party (opponent) grabs the initial market share. Conclusions - In conclusion, investment is essential for market share to increase. We must refrain from a zero-sum game and have models where the game participants pursue the creative profits together. In the current film industry, there is the dominating logic of winner and loser but we have to create a film industry environment where the participants can be altogether satisfied and live together.

• Journal of Korea Entertainment Industry Association
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• v.13 no.6
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• pp.15-24
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• 2019

Hollywood traditional movie companies are continuously challenged by new-type companies represented by the streaming content platforms. Based on the latest market statistics, and with a multidimensional approach involving the production, distribution, projection and overseas market, etc, this paper analyzes the changes and development of North American movie industry in its process of coping with the globalization and digitalization of media in 2018, and summarizes the effective measures for Hollywood mainstream movie companies to adjust their own structures and operation mechanism to maintain their development in the environment of new media consumption.

• The Journal of the Korea Contents Association
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• v.16 no.6
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• pp.576-588
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• 2016

The main objective of this study is to investigate the overseas performance of CGV in order to boost Korean wave and movie platform competitiveness. The focus of this study is to on how CGV may enhance the market share of china market, emphasizing the entrepreneurial orientation of top management team and differentiated entrant strategy based on Korean wave. This study suggests key factors in the china movie platform market expansion process of CGV. In order to analyze this mechanism, we employ a case study method design. The case study results show that there are differences of CGV strategy in movie platform characteristics and the important key factors of growth depending on market situation. The most important thing is that entrepreneurial orientation of top management including differentiated entrant strategy and Korean wave-oriented vision enhance between brand loyalty and market share in china market. In addition, growing overseas impacts of CGV support on Korean wave entertainment and globalization of movie platform industry. Contributions and implications for the academic and managerial field are discussed.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.9 no.8
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• pp.3169-3181
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• 2015

Nowadays, online word-of-mouth has become a powerful influencer to marketing and sales in business. Opinion mining and sentiment analysis is frequently adopted at market research and business analytics field for analyzing word-of-mouth content. However, there still remain several challengeable areas for 1) sentiment analysis aiming for Korean word-of-mouth content in film market, 2) availability of machine learning models only using linguistic features, 3) effect of the size of the feature set. This study took a sample of 10,000 movie reviews which had posted extremely negative/positive rating in a movie portal site, and conducted sentiment analysis with four machine learning algorithms: naïve Bayesian, decision tree, neural network, and support vector machines. We found neural network and support vector machine produced better accuracy than naïve Bayesian and decision tree on every size of the feature set. Besides, the performance of them was boosting with increasing of the feature set size.

• Journal of the Korean Operations Research and Management Science Society
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• v.36 no.4
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• pp.161-184
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• 2011

As movie demands become more and more diversified, it is necessary for movie related firms to segment a whole heterogeneous market into a number of small homogeneous markets in order to identify the specific needs of consumer groups. Relevant market segmentation helps them to develop valuable offer to target segments through effective marketing planning. In this article, we introduce various segmentation methods and compare their advantages and disadvantages. In particular, we analyze "2009~2010 consumer survey data of Korean Film Industry" by using Latent Class Analysis(LCA), a statistical segmentation method which identifies exclusive set of latent classes based on consumers' responses to an observed categorical and numerical variables. It is applied PROC LCA, a new SAS procedure for conducting LCA and finally get the result of 11 distinctive clusters showing unique characteristics on their buying behaviors.

• The Journal of the Korea Contents Association
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• v.13 no.7
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• pp.51-61
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• 2013

This Paper aims to explore the key factors that drive box-office success in Korean, Chinese and Japanese film market regarding to the storytelling of the movies. At first, I researched the top 20 movies at the box office of Korean, Chinese and Japanese film market from 2007 to 2011.And then I tried to figure out the key factors for the success and the differences among those countries. Usually the purpose of the movie planning in Korea is for the domestic market. In the profit structure of Korean film industry, it is really hard to focus on the overseas film market. In Chinese film market, recently it has been changed a lot especially film genre. The movie liked to watch is melodrama, romantic comedy movie It is being changed to the comedy genre from the war and martial arts movie. And it is emphasized the importance of the scenario in the film production. They want to watch their lives like a real and dreams at the movie and the movie tries to show this trend. In Japanese film market, they made movies in which TV drama, animation and cartoon according to the O.S.M.U. strategy. The movies like to watch are the blockbuster movies, horror movies, thriller movies and melodrama. Comparing with Korea and China, they like movies which show more fantastic and fairy tale imagination.

• The Journal of the Korea Contents Association
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• v.13 no.10
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• pp.234-255
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• 2013

Korean Academy of Film Arts (KAFA) is the film school run by Korean Film Council (KOFIC). KAFA was established in 1984, benchmarking American Film Institute (AFA) and in order to foster manpower for Korean Movie under the US's pressure of domestic movie market opening in Korea. The Korean Movie market was open to the world by 1987 and suffered from the low Korean-produced movie market share of around 20% in the domestic market from 1987 to 1998. During the last 30 years, KAFA plays the key role in the Korean movie making industry. Of 520 of number of their alumni, the number of directors is 101, 33 of cinematographers, 18 of producers and 21 of professors in universities' film departments. Korean Directors, Bong Joon-ho of (2013) and topped over 10 million domestic admissions to become the most-watched Korean films of all time. Now, with KAFA's relocation to Busan following with KOFIC, their new roles are promotion of the film industry in Busan, recruiting and educating new talented Korean and foreign student filmmakers, becoming an international film school.