Professor Bainbridge writes on The Economics of Summer Blockbusters, pointing out that lots of expensive films will be opening head-to-head this summer, and opining entertainingly on such possible explanations as the $20-bill auction and herd behavior.

There is a more rational possible explanation, though. As DVD releases account for higher portions of revenues, the initial box office take becomes less important. And while even a dedicated viewer may be unlikely to see two blockbusters in a weekend, there is a significant possibility that he will buy them both to watch at leisure. Increasingly, films may not be competing against each other, but against other uses of leisure time, which is a different game.

It will be interesting to watch total revenues over time. But in the meantime the Professor's comments are amusing and educational in their own right.

Of course (here comes the commercial) it is important to the continuation of such an excess of riches that the movies be protected against profligate unauthorized P2P sharing, or the studios will be forced back into the model of producing only the movies that in-theater-viewing can support.

posted by James DeLong @ 5:38 PM | Media: Video, Music...

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