Publications
Publications
- July 1996 (Revised September 1998)
- HBS Case Collection
Coming Soon: A Theater Near You
Abstract
Designed to illustrate the complexity of buyer-seller arrangements in an established industry. When movie studios negotiate with theater operators to show new films, the costs to the studios of making the films are largely sunk. Similarly, the costs to the theaters of showing films are also sunk. Thus, both parties to the exchange have high bargaining power and are vulnerable to hold-up. Allows students to identify the implications for industry structure. In particular, the case highlights the recent trend toward multiplexes and small screen sizes.
Keywords
Competitive Advantage; Industry Structures; Film Entertainment; Entertainment and Recreation Industry; Motion Pictures and Video Industry
Citation
McGahan, Anita M., and Geoffrey Verter. "Coming Soon: A Theater Near You." Harvard Business School Case 797-011, July 1996. (Revised September 1998.)