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

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.