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Determinants of Movie Success

Student: Anna Budilova

Supervisor: Konstantin Kholodilin

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Economics (Bachelor)

Year of Graduation: 2018

The present research is devoted to the determinants of the movie financial success, which is measured in the opening weekend box office takings. The sample consists of the movies, which were produced and released in the USA during the period from 2014 to 2017. The main data source is the IMDb website, which provides its users with the information on the movie characteristics and its performance on the theatrical market. The number of observations in the sample is 330. In order to determine, which factors affect the US openings, the variables for budget, power of the film company, artistic recognition of director and the leading actors/actresses, genre, MPAA ratings, source of the story, and whether film has the previous part, are introduced. OLS method is implemented to answer the research question. The positive and significant effect on the dependent variable is found for budget, major studio, sequels and prequels, and comics as the source of the script. Concerning measures of the artistic skills recognitions, the opening weekend box office revenue is going to be higher in case of the interaction between the Oscar-winning director and the Oscar-winning actor/actress. Surprisingly, the received results state the decrease of the opening weekend gross in the USA for all genres in comparison with horrors. Coefficients for the age ratings are insignificant. The received findings reflect the modern tendencies in the US motion picture industry that plays an important role in the economy of this country.

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