Bridging nexus between the Financial Returns of the Film Industry and its determinants A case of Pakistan Film Industry
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Date
2017-12
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UMT,Lahore
Abstract
The purpose of this study is to discern the determinants of the returns of movies in its distinctive genre in context of cinematic factor and financial impact factors. We further tested the adequacy of the current return being a success story in comparison to past.
A total of 900 movies sample has been chosen and stratified into equivalent number relating to the old era (1980-2006) and new era (2007-2016). The data demographically relates to the major cities of Pakistan; Lahore, Karachi, Islamabad, Rawalpindi, Peshawar & Quetta. The data is further stratified into Returns (Based upon Box office collection and Investment) and with respect to their perceived determinants, cast, direction, story & Music. We have also tested perceived Financial Determinants (Cast remuneration, variable production cost and promotional expenses). For determining the quantum of returns independent sample T statistics was applied. In order to test the significance of perceived determinants of returns of the movies OLS regression was applied. Our study indicates a surge in returns. Furthermore it reveals that cast and direction are the most significant predictors for the returns, whereas music and story has only shown partial predictability. We have established empirically that for Pakistan film industry the financial returns heavily bank on the financial determinants in which more prominently the cast remuneration and the direct variable cost have major to contribute.