The Box Office Power of Stars

by Sarah Jane Gilbert : Marketing : HBS Working Knowledge


We all understand at some level that stars in the worlds of film, sports, and even business create results. If you want big box office for Pirates of the Caribbean, it probably pays to sign Johnny Depp to play the lead.

But Harvard Business School professor Anita Elberse wanted to learn more about the dynamics of star power. Can studios depend on a star's track record as a predictor of future success? Are two "A-list" stars better than one? Can stars improve a studio's overall profitability as well as kick up box office revenue on one movie? What stars attract the most ticket buyers?

And in an interesting plot twist, Elberse decided to design her research not around actual box office receipts, but rather around a Hollywood simulation game that has over half a million players.

The results were published in her working paper, "The Power of Stars: Creative Talent and the Success of Entertainment Products."

Their power may find its origins in superior acting skills, a loyal fan base, a knack for picking the most promising projects, a strong relationship with other creative talent, a solid box-office record, or a combination of such factors.

Star power, of course, is only one of many factors that determine a film's market performance. Film characteristics such as story line, genre, and the use of special effects also affect demand. The role of directors and other creative talent could play a role. In addition, decisions regarding the release strategy for a film, such as whether to open a movie in a large number of theaters, whether to use television advertising to promote the film, and whether to avoid a competitive, high-season opening weekend may impact its market success as well.