1. USC 2015 Data Analytics Competition
Qian ZHANG, Eric ESAJIN, Minyi ZHU
November 14, 2015

2. Theatrical Marketing Spend
Paramount Home Media Distribution 2
Does the amount of Theatrical Marketing Spend have an impact
on Theatrical Box Office level?
In theatrical box office level, we find the most significant factor is
theatrical marketing spending. 3.9 cents marketing spend will
generate $1 more Box office.
When and what kind of genre to invest in marketing are also
studied: In summer seasons and holiday seasons, with low market
spending they can still get a high box office level. In Action/Sci- fic
and Animated genre, the percentage of market spending vs the
box office is the lowest across all genre.

3. Theatrical Marketing Spend
Paramount Home Media Distribution 3
We run a stepwise to find out which
variables are most statistic significant to
DBO, and the result shows that Total
Theatrical Marketing Spend has a p-value
of 3e-27, which is <0.0001, indicating that
it is high co-related with DBO. The next
two factors which may co-relate with DBO
is Genre and Run Time(Min), p-value of
both are <5%.
3.9 cents Mkt spend will generate $1 more Box office

4. Theatrical Marketing Spend
Paramount Home Media Distribution 4

5. Home Media Marketing Spend
Paramount Home Media Distribution 6
Does the amount of Home Media Marketing Spend have an
impact on transactions across any of the Home Media
channels?
In home media channels, Marketing Spend seems to be critical
in DVD/Blu-ray and iVOD channel, while it is not significantly
impacting the other two Home media channel.
The other significant factors that influnece Home Media
transactions are genre, rating, admission and sales of other
Home movie channels.

6. Paramount Home Media Distribution 7

7. Home Media Marketing Spend
Paramount Home Media Distribution 8

8. Home Media Marketing Spend
Paramount Home Media Distribution 9
DVD/Blu-ray iVOD

9. Summary
Paramount Home Media Distribution 10
DVD/Blu-ray transactions is highly correlated with admissions,
Market spending and Genre. DVD/Blu-ray channels are usually
the second window to release, so we find that the sales are
more related to the movie’s success.
IVOD channel sales is highly correlated with market spending,
genre, run time and also sales of other home media channels.
This might result from the fact that iVOD is always the last
channel to release.
VOD/PPV channel and EST channel don’t show a high
correlation with HMD marketing spend.

10. Summary
Paramount Home Media Distribution 11
Sequences of different channels
2 different sequences of channel releasing is available in the datasets:
•Strategy A. First window EST, Second window DVD, Third window VOD/PPV & IVOD
•Strategy B. First window EST, Second window VOD/PPV & IVOD, Third window DVD
Strategy B seems to have an averagely higher HMD transactions, especially in the
genre comedy. By releasing VOD/PPV & iVOD first, the sales of DVD didn’t seem to be
cannibalized. This might because comparing to VOD/PPV & iVOD viewers, DVD viewers
are less time sensitive.
However as we summarized before, DVD sales is highly related with the movie
success, so we need more data in strategy B to analyze if it’s better.
Home Movie Channel N Avg. DBO (Mil
USD)
Avg.
Admissions
Avg. HM
transaction
First Window
sales
Second
Window sales
Third Window
sales
Avg. HMD Mkt
spend
Spend per
Sales
Admission
Conversion
Ratio
EST - DVD - iVOD & VOD/PPV 461 69 9 2,491 119 815 1,556 2,001 803 0.28
Action/Sci Fi 129 93 12 3,262 183 1,150 1,929 2,556 784 0.27
Animated 39 126 17 3,814 221 2,237 1,357 5,208 1,365 0.22
Comedy 102 52 7 2,319 91 477 1,751 1,380 595 0.34
Drama 129 48 6 1,913 83 467 1,363 1,361 711 0.31
Family 26 73 10 1,995 64 837 1,093 1,681 843 0.19
Horror 36 40 5 1,215 32 270 913 385 317 0.24
EST - iVOD & VOD/PPV - DVD 35 93 12 2,965 114 1,658 1,193 1,904 642 0.25
Action/Sci Fi 15 178 23 4,803 165 2,292 2,346 1,810 3,824 0.21
Comedy 6 21 3 2,659 157 2,244 258 1,363 133 0.95
Drama 10 27 4 1,095 39 713 343 544 472 0.31
Horror 4 49 6 1,212 44 774 395 616 4 0.20