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Movie Release Dates: Who Blinks First?

Movie Release Dates: Who Blinks First?. Adam Cruse Brad Hirsch Krunch Kloberdanz Brawley Reishman Andy Ward. January 23, 2003. Rules of the Game. The date of a movie’s release impacts profitability

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Movie Release Dates: Who Blinks First?

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  1. Movie Release Dates: Who Blinks First? Adam Cruse Brad Hirsch Krunch Kloberdanz Brawley Reishman Andy Ward January 23, 2003

  2. Rules of the Game • The date of a movie’s release impacts profitability • Historically, major movies released during the holiday season gross more than movies released during any other time of the year • We (Warner Bros.) face a crowded holiday market • Two competitors are also ready to release their films • Neither we nor our competitors has announced a release date • When to release? • Holidays (Nov. 15 – Dec. 31) • Post – Holidays (Jan. 1 – Feb. 15) • Later (Feb. 15 – Nov. 15)

  3. Percentage Payoffs Number of Competitors’ Films Released During the Same Period Release Date 0 1 2 Holidays Post-Holiday Later Percentage of average revenue expected

  4. Game Analysis

  5. Game Analysis

  6. Conclusions • Warner Brothers is facing a game of chicken. • In order to break the simultaneous game they must move first and signal a later launch. • This move forces the other two into a holiday launch. • The payoff for Warner Brothers: $897,000!

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