International Comparison of Cultural Discount: Focusing on 31 countries' consumption on Hollywood movies Sungkyungkwan University Byeng-Hee Chang*, Sung-Hyun Lee, and Shin-Hye Kwon

Theoretical Background International Comparison of Cultural Discount 2 * Geographic characteristic of cultural goods * International Trade of Cultural Goods * Cultural Discount * Cultural Discount and Cross-Culture Predictability * Extension of research range temporally and geographically

Research Questions RQ 1 “Do whole factors explaining domestic success of Hollywood movies explain the foreign success as same level? If not, which factor more influence on the difference?” RQ 2 “Do individual factors explaining domestic success of Hollywood movies explain the foreign success as same level? If not, which factor more influence on the difference?” International Comparison of Cultural Discount 3

Regression Model Marketing Factors Distribution Factors Creation Factors Budget, Director, Actor, Genre, MPAA ratings Running time, Period Critics, Audience, Nomination, Wins Total gross (US, 31 countries) International Comparison of Cultural Discount 4

Data Collection ClassificationCountries Criterion countryUS Countries selected by scale of movie market Argentina, Australia, Brazil, China, Egypt, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia(CIS), South Korea, Spain, Sweden, Taiwan, Thailand, Turkey, United Arab Emirates, United Kingdom Countries selected by consumption rate Poland, Romania, Iceland, Bulgaria, Estonia, Switzerland Greece, Norway, Slovakia, Czech Republic International Comparison of Cultural Discount 5 TABLE 1. Analyzed countries Analyzed Countries Data * Year : 2004 ~ 2014 * Analyzed movies : top 100 lists Hollywood Movies from US box office of each year

Method International Comparison of Cultural Discount Total domestic gross of US / 31 countries = β0 +β1(budget) + β2(running time) + β3(nomination) + β4(win) + β5(Animation) + β6(Thriller) + β7(Period) + β8(Romance/Romantic Comedy) + β9(Family) + β10(Comedy) + β11(Drama) + β12(SF/Fantasy) + β13(Horror) + β14(documentary) + β15(MPAA G) + β16(MPAA PG) + β17(MPAA R) + β18(Director) + β19(Actor1) + β20(Actor 2) + β21(Critics) + β22(Audience) + e * The formula for Regression model 6

Method International Comparison of Cultural Discount 7 1)Analyzing p-value of each countries’ regression model 2)Comparing with US results Study Comparing p-value of independent variables with US 1)Analyzing z-value of each countries’ regression model 2)Significant z-value means the variable’s influence is no difference with US’ one Comparing influence of independent variables with US * The formula for z-test

Results – Study 1 International Comparison of Cultural Discount 8 Country - Turkey0.008 United Arab Emirates0.011 Thailand0.016 Russia CIS0.025 South Korea0.034 Mexico0.035 United Kingdom0.050 Indonesia0.053 China0.089 Japan0.097 Taiwan0.099 Australia0.105 France0.105 Sweden0.109 India0.112 Germany0.122 Brazil0.126 Poland0.138 Argentina0.140 Spain0.145 Greece0.154 Norway0.157 Bulgaria0.169 Italy0.169 Switzerland0.173 Slovakia0.185 Egypt0.209 Czech Republic0.215 Romania0.246 Estonia0.266 Iceland0.292 TABLE 2. The degree of success predictability similarity with US

International Comparison of Cultural Discount 9 Results – Study 2-1 1)Analyzing p-value of each variable in each countries’ regression model 2)Comparing with US results TABLE 3. Results of Comparing influence of variables with US p <.005 Study Comparing significant/nonsignificant independent variables with US The number of significant/non- significant variables (same as US) Countries 19Bulgaria 18United Kingdom 17Australia 16Sweden, Spain, Romania 15South Korea, Mexico, Taiwan, Greece, Norway, Eqypt 14Russia CIS, France, India, Brazil, Italy, Iceland 13 Turkey, Germany, Poland, Argentina, Switzerland, Czech Republic, Estonia 12Thailand, China, Slovakia 11United Arab Emirates, Japan 9Indonesia

International Comparison of Cultural Discount 10 Results – Study 2-2 1)Analyzing z-value of each countries’ variable 2)Significant z-value means the variable’s influence is no difference with US’ one Comparison ß -value with US Z-value < 1.96 variables having same influence as US The number of variables having same influence as US

International Comparison of Cultural Discount 11 Variable countsCountriesVariable countsCountries 13Romania5Indonesia 10India5Australia 9Italy5Germany 8South Korea5Brazil 8Japan5Argentina 8Bulgaria5Norway 8Switzerland5Iceland 7China4United Arab Emirates 7Taiwan4Mexico 7France4United Kingdom 6Turkey4Poland 6Russia CIS4Spain 6Sweden3Thailand 6Egypt3Slovakia 6Czech Republic2Greece 6Estonia TABLE 4. Results of z-test 01 Results – Study 2-2

Countries Variables US p-value Countries Budget Running Time Turkey United Arab Emirates Thailand South Korea Mexico China Taiwan France Sweden India Brazil Poland Argentina Spain Greece Bulgaria Italy Switzerland Egypt Romania Iceland 21 Nominations Wins United Kingdom, Japan, Germany, Norway, Romania5 Animation Turkey, Russia CIS, South Korea, Mexico, Australia, France, Sweden, Brazil, Spain, Norway, Italy, Switzerland, Romania, Iceland 14 Thriller Thriller India Italy Switzerland Egypt Czech Republic Romania Iceland8 Period United Arab Emirates Thailand Russia CIS South Korea Indonesia China Japan Sweden India Germany Argentina Norway Bulgaria ItalySwitzerland Czech Republic Romania Iceland 18 Romance/ Romantic comedy Russia CIS Indonesia China Japan Taiwan France Bulgaria Italy Romania9 Family Turkey Thailand Russia CIS South Korea Mexico United Kingdom Indonesia China Japan Taiwan Australia France Sweden India Germany Brazil Poland Argentina Spain Greece Bulgaria Italy Switzerland Slovakia Egypt Czech Republic Romania Estonia Iceland 29 Comedy Switzerland Czech Republic Romania Estonia4 Drama China, Estonia2 SF/Fantasy Turkey Mexico United Kingdom China Japan Taiwan Australia France Sweden India Germany Argentina Spain Bulgaria Italy Switzerland Egypt Romania Estonia 19 Horror Turkey Russia CIS South Korea United Kingdom Indonesia Japan Taiwan France Sweden India Germany Brazil Poland Argentina Italy Slovakia Romania Estonia 18 Documentary South Korea Indonesia China Japan India Romania Estonia7 G United Arab Emirates Russia CIS South Korea Japan Taiwan Australia France India Brazil Poland Bulgaria Italy Switzerland Czech Republic Romania 15 PG Turkey South Korea Taiwan Australia IndiaSlovakia Romania7 R Bulgaria Egypt2 DPower_A Actor1_A Actor2_A Norway1 Critics_Meta United Arab Emirates Russia CIS Bulgaria3 AudienceA South Korea India Norway Egypt Czech Republic Estonia6 TABLE 5. Results of z-test International Comparison of Cultural Discount

Discussion and Conclusion International Comparison of Cultural Discount 13 * Theoretical distribution Elaborating Cultural discount theory 1) variable Genre  Creative factors, distribution factors, Marketing factors 2) Extension of time and region 10 years(2004~2014) / 31countries * Industrial distribution planning export movies in other countries * Follow-up Study suggestion validity test of variables

Thank you. 14 International Comparison of Cultural Discount