Predictive value of video-sharing behavior: sharing of movie trailers and box-office revenue

TLDR: This study reveals that promotion through video-sharing social media websites can serve as an essential marketing tool for entertainment goods such as movies, while the sharing of a movie trailer has a positive influence on the box-office revenue of the movie.

Abstract: Purpose The purpose of this paper is to examine whether the sharing of movie trailers on video-sharing social media has an impact on box-office revenue. Design/methodology/approach From December 2013 to November 2014, view statistics were collected for movie trailers from YouTube and matched with the box-office revenue of the relevant movies from Box Office Mojo. Based on the 72 sample movies, a panel simultaneous equation model was applied. Findings The results show that sharing of a movie trailer has a positive impact on the box-office revenue of the movie, and this effect is greater in the early stage of a movie release than in the later stage. Research limitations/implications This study analyzes, from electronic word-of-mouth (eWOM) and social influence perspectives, the effects of video-sharing activities on social media and their impact on sales with an example that is representative of entertainment goods or movie trailers. Practical implications This study reveals that promotion through video-sharing social media websites can serve as an essential marketing tool for entertainment goods such as movies, while the sharing of a movie trailer has a positive influence on the box-office revenue of the movie. Originality/value Focusing on the sharing features of video-sharing social media websites, this study contributes to enhancing our understanding of the predictive power of consumers’ video-sharing and expanding current research on eWOM and social influence.