Abstract

Due to the high importance in the global economy and the availability of comprehensive data set, the motion picture industry has emerged as an important focus of research inquiry. A large amount of studies have been conducted to investigate the determinants of the box office revenues, and sequel is found to be a key factor in improving the box office performance of movies. In spite of the numerous studies concerning the motion picture industry, little is known about the specific box office drivers of motion picture sequels. Therefore, the purpose of this thesis is to (1) conceptualize movie sequels as brand extensions of an experiential product; (2) collect a data set comprising of both single movie sequels and multiple movie sequels to reveal box office drivers of movie sequels; (3) in terms of multiple movie sequels, how the box office performance of the most recent intervening sequels affects the box office revenue of the subsequent sequels and (4) what kind movie sequel is amenable to success. A linear regression model approach is adopted to address this research topic. The results indicate that: (1) the box office performance of the parent movie is positively related to the success of the sequel; (2) the box office revenue of a movie sequel is influenced by its naming strategy; (3) PG-13 rated movie sequels are more amenable to success.