Impact Of Film Website UGC On Box Office Revenue

With the rapid development of Web2.0 since its inception,user-generated content(UGC)on the Internet has also seen a tremendous increase.UGC can be seen on SNS,VCoPs,blogs and other web 2.0 based platforms.UGC has also been a research focus.In many empirical studies,the relationship between UGC and purchase decisions has been analyzed.Particularly,UGC on the film website has attracted much attention with the rapid development of the film market,and many studies explored the relationship between UGC and film consumption decisions.This paper seeks to find the relationship between film website UGC and actual box office revenue using panel data analysis.Different from previous researches,this article introduced word-of-mouth theory and anchoring effects in order to incorporate new influencing factors in the theory model design.UGC data and real-time box office data of ten selected films was automatically collected and then analyzed by Eviews.Finally,six out of ten hypotheses were supported,suggesting that several dimensions of UGC had significant effects on box office revenue.The contents of this paper include:(1)This paper reviewed the current researches of UGC and online reviews,introduced word-of-mouth theory and anchoring effects.Based on the theoretical analysis,the research hypotheses of this paper was put forward.(2)In the empirical research process,UGC data and box office data of ten selected films with a time span of 4 weeks were collected and cleaned.As a result,a 10*28 panel data was constructed and statistically examined.And Fixed effect model was selected for panel data regression analysis.(3)According to the results of regression analysis,this paper found that number of UGC reviews has a significant positive effect on the box office revenue,and the valence of UGC was not proved to have a significant effect on the box office revenue which was in accordance with previous researches.Besides,number of UGC reviews from the first week has a significant positive effect on the box office revenue of following weeks,suggesting that anchoring effect worked in this research.At last,managerial suggestions were proposed to facilitate the healthy development of UGC.