Incentive Plans Improvement in Movie Value Chain: USA Motion Picture Industry

Authors

  • Ekaterina Zaytseva Saint Petersburg State University
  • Margarita Gladkova Saint Petersburg State University

Abstract

The purpose of the research is to investigate the motives of cooperation in the movie production and to improve the methodology of incentive income imputation formation on the basis of appropriate game-theoretical model construction. As a result a systematized methodology of the income imputations definition generated by the product of cooperation (movie), which can be used as a decision-making support tool in negotiations about shares of the income allocation among the participants of the cooperation of the movie creation, has been elaborated. It should be accentuated that it is not assumed that the implementation of the methodology will give the revenue imputations, which could be taken as per se, however, it can become a substantial help during negotiations of the parties involved about their participation in revenue. The applicability of the methodology has been tested on the cases from Hollywood practice.

Keywords:

motion picture, members of motion picture industry, box-office, revenue-sharing contracts, cooperative game, imputation, nondominant revenue imputation, optimal imputation

Downloads

Download data is not yet available.

References

Caves, Richard E. (2001). Creative Industries: Contracts between Art and Commerce. Harvard University Press, Cambridge: MA.

Chesbrough, H. W. (2004). Managing Open Innovation. Research Technology Management, 47(1), 23–26.

Chesbrough, H. W., Appleyard, M. M. (2007). Open Innovation and Strategy. California Management Review, 50(1), 57–76.

Chisholm, D. C. (1997). Profit-Sharing versus Fixed-Payment Contracts: Evidence from the Motion Picture Industry. The Journal of Law, Economics and Organization, 13(1), 169–200.

Cones, J. W. (1997). The Feature Film Distribution Deal: A Critical Analysis of the Single Most Important Film Industry Agreement. Carbondale: Southern Illinois Press.

Cook, K. (1977). Exchange and power in networks. The Sociological Quarterly, 18.

Cook, K. et al. (1983). The distribution of power in exchange network. American Journal of Sociology, 89.

Cox, A. et al. (2002). Supply Chains, Markets and Power. Routledge, London.

Cox, A., Sanderson, J. and Watson, G. (2000). Power Regimes. Earlsgate Press, Helpston.

Daniels, B., Leedy, D., Sills, S. D. (1998). Movie Money: Understanding Hollywoodś (Creative) Accounting Practices. Silman-James Press, Los Angeles, California.

De Vany, A., Walls, W. D. (1999). Uncertainty in the Movie Industry: Does Star Power Reduce the Terror of the Box Office? Journal of Cultural Economics, 23(4), 285–318.

De Vany, A., Walls, W. D. (2000). Private Information, Demand Cascades, and the Blockbuster Strategy. Working Paper, department of Economics, University of California at Irvine.

De Vany, A., Walls, W. D. (1996). Bose–Einstein Dynamics and Adaptive Contracting in the Motion Picture Industry. The Economic Journal, 106(11), 1493–1514.

Desai, M. A., Loeb, G. J., Veblen, M. F. (2002). The Strategy and Sources of Motion Picture Finance. Harvard Business School Case. 9-2-3-007.

Duarte, V., Sakar, S. (1998). Separating the Wheat from the Chaff - a Taxonomy of Open Innovation. European Journal of Innovation Management, 14(4), 435–459.

Eliashberg, J., Elberse, A., Leenders, M. (2005). The motion picture industry: critical issues in practice, current research and new research directions. Boston: Harvard Business School Press.

Emerson, R. (1962). Power-dependence relations. American Sociological Review, 27.

Epstein, E. J. (2011). The Hollywood Economist: The Hidden Financial Reality Behind the Movies. New York: E.J.E. Publications, Brooklyn.

Finney, A. (2010). Value chain restructuring in the global film industry. The International Film Business - a Market Guide Beyond Hollywood, 5.

Garon, J. M. (2009). Film Financing and Distribution Deals. Independent Filmmaking, The Law & Business Guide for Financing, Shooting & Distributing Independent & Digital Films (Second Edition). A Capella Books.

Hart, O., Holmstrom, B. (1987). The Theory of Contracts. Advances in Economic Theory. Fifth World Congress. Cambridge: Cambridge University Press.

Honthaner, E. L. (2010). The Complete Film Production Handbook (Fourth Edition). Elsevier Inc.

Lee, J. J. Jr., Gillen, A. M. (2011). The Producer's Business Handbook. The Roadmap for the Balanced Film Producer (Third Edition). Taylor & Francis.

Litman, B. R., Ahn, H. (1998). Predicting Financial Success of Motion Pictures. The Motion Picture Mega-Industry. Needham Heights, MA: Allyn & Bacon.

Litman, B. R., Kohl, L. S. (1989). Predicting Financial Success of Motion Pictures: The '80s Experience. Journal of Media Economics, 2, 35–50.

Mazalov, V. V. (2010). Game Theory and Appendices. St. Petersburg: "Lan".

Petrosjan, L. A., Zenkevich N. A. (1996). Game Theory (Series on Optimization; vol. 3). World Scientific Publishing Co. Pte. Ltd.

Petrosjan, L. A., Zenkevich N. A. (2016). Game Theory (Second Edition). World Scientific Publishing Co. Pte. Ltd.

Quelch, J., Elberse, A., Harrington, A. (2004). The Passion of the Christ (A). Harvard Business School Case, 9-505-020.

Ravid, S. A. (1999). Information, Blockbusters, and Stars: A Study of the Film Industry. Journal of Business. 72(4), 463–492.

Rodnyansky, A. (2013). The producer comes out. Moscow: Mann, Ivanov & Ferber.

Ross, S. A. (1973). The Economic Theory of Agency: The Principal's Problem. American Economic Review, 63(2), 134–139.

Salancik, G. and Pfeffer, J. (1977). Who gets power and how do they hold on to it: a strategic-contingency model of power. Organizational Dynamics, 6.

Sochay, S. (1994). Predicting the Performance of Motion Pictures. Journal of Media Economics, 7(4), 1–20.

Vogel, Harold L. (2010). Entertainment Industry Economics (Eighth Edition). New York: Cambridge University Press, Cambridge.

Vogel, Harold L. (2015). Entertainment Industry Economics (Ninth Edition). New York: Cambridge University Press, Cambridge.

Wallace, W. T., Seigerman, A., Holbrook, M. B. (1993). The Role of Actors and Actresses in the Success of Films: How Much is a Movie Star Worth? Journal of Cultural Economics, 17(1), 1–27.

Wasko, J. (2003). How Hollywood Works. Sage Publications Inc.

Watson, G. (2004). Uncertainty and Contractual Hazard in the Film Industry: Managing Adversarial Collaboration with Dominant Suppliers. Supply Chain Management: An International Journal, 9(5), 402–409.

Weinstein, M. (1998). Profit Sharing Contracts in Hollywood: Evolution and Analysis. Journal of Legal Studies, 27(1), 67–112.

Downloads

Published

2022-05-01

How to Cite

Zaytseva, E., & Gladkova, M. (2022). Incentive Plans Improvement in Movie Value Chain: USA Motion Picture Industry. Contributions to Game Theory and Management, 9. Retrieved from https://gametheory.spbu.ru/article/view/13359

Issue

Vol. 9 (2016)

Section

Articles

License

Articles of "Contributions to Game Theory and Management" are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.