Publication Type

Presentation

Publication Date

1-2012

Abstract

In the U.S. motion picture industry, DVDs are increasingly a major source of revenue for moviestudios. Two important strategic decisions for DVDs are the release date and price. Industry evidencesuggests studios consider various release options as evidenced by their pre-release announcements. Whendeciding DVD release dates and prices, studios must consider the following. First, weeks of high demandpotential, increase sales. Second, intense competition in weeks of peak demand might reduce marketshare, lower margins and lead to higher costs of release. Third, deferring a DVD release (e.g. to a nonpeakdemand week) after the movie’s theatrical run reduces the potential sales of the title. So how doesthe competitive equilibrium of release dates and prices evolve?

Discipline

Marketing

Research Areas

Marketing

Publication

Marketing Science, Boston, USA, 2012 January 1

City or Country

Boston, USA

Included in

Marketing Commons

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