1. Action! Lights, Camera: The Effect of Preannouncements on Experience Goods – The Case
of the Motion Picture Industry
Abstract: Firms developing new products often execute a preannouncement strategy as a signal
to the market that it plans to commercialize a new market offering. Following a thorough
assessment of the risks and benefits associated with preannouncement, the firm must decide
which information to announce to whom and at what time. Much of the research conducted in
this stream focuses on search products; little work includes experience good, such as motion
pictures. Preannouncements provide a relatively quick and expensive way for firms to clarify the
uncertainties about their products. Since the Golden Days of the Silver Screen, the motion
picture industry has employed preannouncement strategy prior to the release of new movies.
Months or even years prior to the production of a new picture, studio release information to the
media regarding a sought-after property for which they have obtained the movie rights or which
actors are being consider for a coveted starring role in the next blockbuster. This paper is perhaps
the first to link the dimensions of preannouncement strategy to market anticipation for new films
and first weekend box office revenues. A conceptual model is presented which includes the
moderating factors of studio advertising and third party critical reviews.
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6. Table 1: Selected Timeline for Preannouncement Publicity – Gone with the Wind and Brokeback Mountain
Gone with the Wind Brokeback Mountain
Event Details of the Event Date Source Details of the Event Date Source
Movie Rights Selznick pays $50,000 for 07/11/1936 NY Times Annie Proulx sells rights to 12/19/1998 Brice 1998
Secured rights to Gone with the Wind. 1936a Brokeback Mountain for
undisclosed amount.
Director George Cukor is selected to 09/12/1936 NY Times Gus Van Sant is chosen to 01/08/1999 Snead
Announcements direct Gone with the Wind. 1936b direct for Brokeback 1999
Mountain.
Ang Lee is signed to direct 01/17/2004 Kane 2004
Brokeback Mountain.
Victor Fleming replaces 02/15/1939 NY Times
Cukor as director. 1939b
Selected Casting Tallulah Bankhead tries out 12/22/1936 NY Times Heath Ledger and Jake 01/18/2004 Harris
Announcements for Scarlett O‟Hara. 1936c Gyllenhaal are selected to 2004
Miriam Hopkins and Clark 03/19/1937 NY Times play the leads in Brokeback
Gable are cast as Scarlett 1937 Mountain.
O‟Hara and Rhett Butler.
Norma Shearer is cast as 06/24/1938 NY Times
Scarlett O‟Hara. 1938a
Norma Shearer declines 08/01/1938 NY Times
Scarlett role due to fans. 1938b
Warner Bros. to loan Bette 09/21/1938 NY Times
Davis for Scarlett O‟Hara. 1938c
Carole Lombard is cast to 12/18/1938 Churchill
play Scarlett O‟Hara. 1938
Vivien Leigh is cast as 01/14/1939 NY Times
Scarlett O‟Hara. 1939a
Release Gone with the Wind opens in 12/15/1939 Berger Brokeback Mountain begins 12/14/2005 Puig 2005
Atlanta amidst parades, balls, 1939 in limited release on
and antebellum costuming. 12/09/2005. First weekend
receipts are $545,000 in
five theaters.
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