Hollywood and its Global Reach: Analyzing Key Drivers of Movie Demand in Foreign Markets

Chen, Yi
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University of Guelph

Existing studies have examined how cultural differences between movie producing countries and foreign audiences influence consumption, but most of them ignore the releasing stage. This study extends research on cultural impacts in the international marketing of movie industry by examining both distributors’ decisions on exporting movies and audiences’ decisions on watching movies. Using the dataset of Hollywood 769 wide release movie in 56 foreign countries during 2012-2016 as an example, this study obtains both movie factors and country factors in the two steps of Heckman model. The results indicate that distributors prefer to release movies in countries that have similar cultures and that moviegoers from culturally distant countries prefer Hollywood movies. These findings offer practical implications to distributors because they can modify the releasing strategy to enhance the audiences’ movie watching experience.

Hollywood movies, Cultural distance, National culture, Heckman selection model