• 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.

• Journal of the Economic Geographical Society of Korea
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• v.8 no.1
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• pp.107-130
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• 2005

The purpose of this study were to examine the spatial distribution and locational characteristics of the Internet movie industry, to seize the value chains of the Internet movie industry and distribution structure of the internet movies, and to analyze the vertical-horizontal linkages of the Internet movie firms and their spatial clustering. Recently, the Internet movie industry has developed rapidly due to the development of techniques related to movie contents, the broadband Internet and a wide expansion of the high speed communication network and the increase of demands on movie contents. It has been found that 74$\%$ of the Internet movie industry was concentrated in Seoul. Especially this industry was quite agglomerated in several dongs of Gangnam-gu such as Yoeksam, Nonhyeon, Daechi and Samseung. The proximity of the same or similar business firms was the primary locational factors that influenced on the Internet movie industry, followed by other factors such as convenience of transportation, the reputation of the place, and proximity of technically supporting firms. The Internet movie industry had the valve chain composed of 'contents suppliers $\rightarrow$ contents distributors $\rightarrow$ service providers', However, there were also a complex network of the VOD copyright owner, VOD syndicator, and service providers in each category of the value chain. This research clearly revealed that the localized clustering has been formed with the movie contents providers, technically supporting firms, client firms, and cooperative-affiliated business firms related to the Internet movie industry, Additionally, a very intimate network has been established within the clustering, inducing the enlargement of the market and decrease of costs, the co-sharing of tacit knowledge, and the synergy effect.

• Journal of the Korean Regional Science Association
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• v.9 no.2
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• pp.71-87
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• 1993

The purpose of this study is to analyze the restructuring processes of the locations of service industry whose demand has been decrease rapidly. The demand of movie theater has been change dramatically during the last three decades. the spatial distribution patterns of movie theaters have been changed according to the changes in the demand. In order to investigate the locational charateristics of movie theaters, in seoul we surveyed the consumer's behavior. We focused on the study to examine the relationships between the locations of movie theaters and transportation development. Especially, We look at the impacts of the development of subway networks on the locations of movie theaters in Seoul. The dvelopment of subway networks has played a very of movie theaters location. The hierarchicla structures of movie theaters have also chaged. Inspite of declining in the demand for movie theater, the number of first-run movie theaters has been increased continuously. The number of second-run movie theaters has been decreased dramatically. Some of them has been upgraded to first-run theater and some of them has been smallized. But, most of them have been closed. An the other hand the quality of movie theater facilities tends to be higher, while the sizes of movie theaters tends to be smallized.

• Journal of Distribution Science
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• v.15 no.9
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• pp.85-93
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• 2017

Purpose - The volume and valence of online word-of-mouth(eWOM) have become an important part of the retailer's market success for a wide range of products. This study aims to investigate how the growth of eWOM has generated the product's final financial outcomes in the introductory period influences. Research design, data, and methodology - This study uses weekly box office performance for 117 movies released in the South Korea from July 2015 to June 2016 using Korean Film Council(KOFIC) database. 292,371 posted online review messages were collected from NAVER movie review bulletin board. Using regression analysis, we test whether eWOM incurred during the opening week is valuable to explain the last of box office performance. Three major eWOM metrics were considered after controlling for the major distributional factors. Results - Results support that major eWOM variables play a significant role in box-office outcome prediction. Especially, the growth rate of the positive eWOM volume has a significant effect on the growth potential in sales. Conclusions - The findings highlight that the speed of eWOM growth has an informational value to understand the market reaction to a new product beyond valence and volume. Movie distributors need to take positive online eWOM growth into account to make optimal screen allocation decisions after release.

• Journal of Broadcast Engineering
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• v.9 no.2
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• pp.119-130
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• 2004

We have developed a prototype super-high-definition (SHD) digital cinema distribution system that can store, transmit, and display eight-million-pixel motion pictures that have the image quality of a 35-mm film movie. The system contains a movie server, a real-time decoder, and an SHB projector. Using a Gigabit Ethernet link and TCP/IP, the server transmits JPEG2000 compressed motion picture data streams to the decoder at transmission speeds as high as 300 Mbps. The received data streams are decompressed by the decoder, and then projected onto a screen via the projector. By using an enlarged TCP window, multiple TCP streams, and a shaping function to control the data transmission quantity, we achieved real-time streaming of SHD movie data at about 300 Mbps between Chicago and Los Angeles, a distance of more than 3000 km. We also improved the decoder performance to show movies with Image qualities of 450 Mbps or higher. Since UDP is more suitable than TCP for fast long-distance streaming, we have developed an SHD digital cinema UDP relay system, in which UDP is used for transmission over a fast long-distance network. By using four pairs of server-side-proxy and decoder-side-proxy, 450-Mbps movie data streams could be transmitted.

• The Journal of the Korea Contents Association
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• v.11 no.1
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• pp.429-437
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• 2011

Movie network as a social network shows power-law distribution that is one of distinct properties in scale-free network. We constructed movie network from 799 Korea movies that screened from 2000 to 2009 and analyzed structural properties of the network. The 799 movies was classified three groups as a spectator mobilizing power. One million spectators mobilizing power movie was denoted the first class. The best 10 movie directors who produced at least three movies for ten years and had 70% the first class movie of them were selected. We also preferred the best 20 movie actors who played at least five movies for ten years and had 70% the first class movie of them. We re-constructed core movie network that composed the best 10 directors, the best 20 movie stars, and 157 movies that were produced by the directors or were played by the movie stars. We predict a possible combination of the director and movie actor as a category of the movie that has highly spectator mobilizing power. Here, we provide insight and method for producing high spectators mobilizing power movies

• 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.

• Journal of Distribution Science
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• v.12 no.4
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• pp.73-83
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• 2014

Purpose - This study aims to classify and extend the consumer value of movie theaters into various values such as functional value, emotional value, social value, epistemic value, and conditional value based on the theory of consumption value by Sheth, Newman and Gross (1991). It also aims to verify the path structure of consumption value→customer satisfaction→behavior intention of movie theaters to confirm its generalization. Research design, data, and methodology - This study was conducted by collecting data on Kimpo university students from various areas in Incheon, Northern Seoul, Ilsan, Kyonggi Province, and Kimpo City. The survey was conducted by distributing 280 survey papers from Oct. 5 to 15, 2013 and collecting 238 of them. The final analysis used 208 questionnaires, after excluding 30 invalid responses. The statistical analysis of this study used the SPSS 19.0 statistics package. Results - The results of the survey are as follows: First, consumption values of movie theaters are classified into the following five groups: functional value, emotional value, social value, epistemic value, and conditional value. This study verified that consumption values play a role as a previous variable of customer satisfaction. Second, functional value, emotional value, and epistemic value have positive effects on customer satisfaction. On the other hand, social value and conditional value do not affect customer satisfaction. Finally, customer satisfaction has a positive impact on behavior intention. Theater users have an intention to re-use or recommend the movie theater they used when they are satisfied with a movie theater's physical environment and services. Conclusions - This study can provide academic and practical implications as follows based on the results mentioned above. First, academic implications can be found in that consumption values of movie theater users are classified into five values based on the theory of consumption value by Sheth et al. (1991). In the previous study, the service quality of a movie theater was studied based on the service quality of service encounters and a physical environment→customer satisfaction→behavior intention path structure. However, this study was verified by a consumption value→customer satisfaction→behavior intention path structure to classify consumption value, but not service quality or perceived value of quality, to confirm this generalization. Second, practical implications can be found in that the relative impact of consumption value of movie theaters on consumer satisfaction showed that functional value was followed by epistemic value and emotional value. In the previous study on movie theaters, previous variables of customer satisfaction were separated only by functional service quality including service encounters and physical environment; in some other studies, quality of service encounter had a direct effect on customer satisfaction. Accordingly, a marketing manager of a movie theater should develop various differentiated services by reflecting not only functional value such as service encounters and physical environment but also epistemic value and emotional value.

• 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.