An Analysis of the Out-of-Market Gap for DVDs in the U.S. |
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Authors: | Randy A Nelson Clifford E Reid Owen Gilmore |
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Institution: | (1) Department of Economics, Colby College, Waterville, ME 04901, USA |
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Abstract: | We examine the out-of-market gap – the time between the end of a film’s theatrical run and its release on DVD – for a sample
of U.S. films during 1988-2005. The average gap declined from 58.14 days in 1998 to 27.93 days in 2005; by 2005, 39% of the
films were released on DVD prior to leaving the theaters. Probit and hazard models are estimated to explore the factors that
influence a distributor’s decision to release a film on DVD before it exits the theaters, and the timing of the release for
films that appear on DVD after they leave the theaters.
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Keywords: | DVDs Motion picture industry Optimal release strategy |
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