Graduation Year

Fall 2012

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Mary Evans

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© 2012 Evan T. Otis

Abstract

The collapse of the video window is disrupting the economic framework between exhibitors and distributors in the film industry. This study analyzes the collapse from several angles and provides a detailed description as to why the collapse has, and will continue to be, disruptive. I first examine the impact various technologies have had on the collapse of the video window – the time between a motion picture’s theatrical release and video release – during 1997 – 2012. The average video window has declined from 5 months 22days in 1997 to 3 months 29 days in 2012. Differences of means tests were used to inspect the average video window at the time of each technology’s introduction. Then in order to reveal how the length of the video window affects box office profit, I use an ordinary least squares regression to examine the determinants of gross domestic box office profit for a sample of 294 top earning U.S. films during 1999-2012.

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