Early Prediction of Movie Box Office Success based on Wikipedia Activity Big Data

Use of socially generated "big data" to access information about collective states of the minds in human societies has become a new paradigm in the emerging field of computational social science. A natural application of this would be the prediction of the society's reaction to a new product in the sense of popularity and adoption rate. However, bridging the gap between "real time monitoring" and "early predicting" remains a big challenge. Here we report on an endeavor to build a minimalistic predictive model for the financial success of movies based on collective activity data of online users. We show that the popularity of a movie can be predicted much before its release by measuring and analyzing the activity level of editors and viewers of the corresponding entry to the movie in Wikipedia, the well-known online encyclopedia.Comment: 13 pages, Including Supporting Information, 7 Figures, Download the dataset from: http://wwm.phy.bme.hu/SupplementaryDataS1.zi

Advertising and Word-of-Mouth Effects on Pre-launch Consumer Interest and Initial Sales of Experience Products

This study examines how consumers' interest in a new experience product develops as a result of advertising and word-of-mouth activities during the pre-launch period. The empirical settings are the U.S. motion picture and video game industries. The focal variables include weekly ad spend, blog volume, online search volume during pre-launch periods, opening-week sales, and product characteristics. We treat pre-launch search volume of keywords as a measure of pre-launch consumer interest in the related product. To identify probable persistent effects among the pre-launch time-series variables, we apply a vector autoregressive modeling approach. We find that blog postings have permanent, trend-setting effects on pre-launch consumer interest in a new product, while advertising has only temporary effects. In the U.S. motion picture industry, the four-week cumulative elasticity of pre-launch consumer interest is 0.187 to advertising and 0.635 to blog postings. In the U.S. video game industry, the elasticities are 0.093 and 1.306, respectively. We also find long-run co-evolution between blog and search volume, which suggests that consumers' interest in the upcoming product cannot grow without bounds for a given level of blog volume

Movie Industry Economics: How Data Analytics Can Help Predict Movies’ Financial Success

Purpose: Data analytics techniques can help to predict movie success, as measured by box office sales or Oscar awards. Revenue prediction of a movie before its theatrical release is also an important indicator for attracting investors. While measures for predicting the success of a movie in box office sales and awards are widely missing, this study uses data analytics techniques to present a new measure for prediction of movies’ financial success.Methodology: Data were collected by web-scraping and text mining. Classification and Regression Tree (CART), Random Forests, Conditional Forests, and Gradient Boosting were used and a model for prediction of movies' financial success proposed. Content strategy and generating high profile reviews with complex themes can add to controversy and increase the chance of nomination for major movie awards, including Oscars.Findings/Contribution: Findings show that data analytics is key to predicting the success of movies. Although predicting sales based on data available before the release remains a difficult endeavor, even with state-of-the-art analytics technologies, it potentially reduces the risk of investors, studios and other stakeholders to select successful film candidates and have them chosen before the production process starts. The contribution of this study is to develop a model for predicting box office sales and the chance of nomination for winning Oscars. Practical Implications: Cinema managers and investors can use the proposed model as a guide for predicting movies’ financial success