Post on 04-Jan-2016
Gerda GemserSchool of Economics, Finance and Marketing/
Design Research Institute
Assessing quality in the creative industries: on the role of gatekeepers
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Creative Industries
• Creative industries: demand is highly unpredictable“There are no formulas for producing a hit record….just as there are no pat answers for producing hit [theatre] plays, or sell-out movies or best-selling books” (spokesman recording industry)
• Strategies to minimize demand uncertainty in the creative industries:
– contact men/women – overproduction– cooptation gatekeepers
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Gatekeepers: filtering of new products
• Filtering process of new products as they flow from producer to consumer little attention for ´throughput´ sector: organizations/ gatekeepers
that filter the overflow of information and materials intended for consumers
• Gatekeepers are particularly important when actual quality of products is difficult to ascertain: Search products vs Experience products vs. Credence products
• Gatekeepers preselect: they save time and effort, helping consumers in their decision making process: ‘curated consumption’
• Examples: awarding organizations, experts who write reviews
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AwardCorporate Performance:- direct gains- indirect gains
Product characteristics
(search, experience, credence)
Other institutional award characteristics:- Age- Monetary value- Frequency award- Selection criteria- ….
Reputation award
moderating influences
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Market Selection
Producers
Consumers
MTV AwardsPeople’s choice awards
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Peer Selection
Producers
Academy AwardsDirectors Guild AwardsIndependent Spirit AwardsScreen Actors Guild Awards
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Expert Selection
Producers
Consumers
Experts
Golden Globes AwardsNational Society of Film Critic AwardsNew York Critics Circle Awards
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On the Role of Film Awards
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Hypotheses
• Awards are more effectively as means of certification if Awards are more effectively as means of certification if they are adapted to the selection system dominating the they are adapted to the selection system dominating the purchase behavior in the industry (segment). Why? purchase behavior in the industry (segment). Why? Because of high source credibility and salience in the Because of high source credibility and salience in the case of ‘fit’case of ‘fit’ In the case of In the case of mainstream films, consumer-selected mainstream films, consumer-selected
awards will be more effective than peer or expert awards will be more effective than peer or expert selected awardsselected awards
In the case of art house films, expert-selected awards In the case of art house films, expert-selected awards will be more effective than consumer or peer selected will be more effective than consumer or peer selected awardsawards
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Method
• Empirical setting: U.S. motion picture industry
• Awards bestowed on films released in 1997-2001
• 13 awards:
–5 peer-selected (e.g. Academy Awards)
–5 expert-selected (e.g. Golden Globes)
–3 market-selected (e.g. MTV movie awards)
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Results
• On average, expert-selected awards more effective than consumer-selected and peer-selected awards
• Consumer-selected awards are not more credible sources for mainstream movies
• Expert awards are more credible sources for art house movies, and have a significant positive effect on film performance for art house but not for mainstream films
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Implications
• Proliferation of awards: Art house movie makers should focus on winning
expert-selected awards Mainstream movie makers do not need to fight to win
Academy Awards (peer-prize): MTV seems to be equally effective source. Or maybe not focus on awards at all?
• Enhance signal effectiveness: examine the types of information normally used by consumers to select products and act accordingly
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On the role of product reviews
• Expert reviews: help in selecting (experience) products & entertaining in themselves
• Impact of expert reviews on performance: Influence effects vs. Prediction effects
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On the role of product reviews
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Hypotheses
• Relationship between film reviews and film performance depends on type of film involved:
–For art house movies: film reviews have an influence effect
–For mainstream movies, film reviews have a prediction effect
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Setting research
• Movies with their first theatrical release in The Movies with their first theatrical release in The Netherlands, in 1993-2003 (n=84)Netherlands, in 1993-2003 (n=84)
• Box office data: opening weekend & cumulativeBox office data: opening weekend & cumulative
• Film reviews published in the national daily newspapers Film reviews published in the national daily newspapers on release date or 1 day after release dateon release date or 1 day after release date– Nature determined by star rankings (as summarized in Nature determined by star rankings (as summarized in
Film KrantFilm Krant))– Size in cmSize in cm22 (including pictures) (including pictures)
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Results
• Average critics’ ratings (nature review) for art house Average critics’ ratings (nature review) for art house movies not significantly different from mainstream filmsmovies not significantly different from mainstream films
• Average space (cm2) allocated to art house movies Average space (cm2) allocated to art house movies significantly less than for mainstream moviessignificantly less than for mainstream movies
• Art house movies have smaller budgets, fewer screens, Art house movies have smaller budgets, fewer screens, often no high-profile cast, small-scale distributors, build often no high-profile cast, small-scale distributors, build less on prior work (e.g. less sequels)less on prior work (e.g. less sequels)
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Results
• Effects reviews differ depending on type of movie Effects reviews differ depending on type of movie involvedinvolved
• The size (not nature) of film reviews is able to influence The size (not nature) of film reviews is able to influence early art house movie demandearly art house movie demand
• Nor size nor nature of film reviews influence the success Nor size nor nature of film reviews influence the success of mainstream moviesof mainstream movies
• Thus: try to persuade film critics to write reviews about art Thus: try to persuade film critics to write reviews about art house films, whatever their nature (but no need to spill house films, whatever their nature (but no need to spill resources in the case of mainstream movies)resources in the case of mainstream movies)
Questions?