Game Theory in Film Industry
Film industry is one of the fastest growing and most competitive industries in the world right now. There are countless films being produced each year, and some of them are featuring the same topic. Not all the movies can have a huge box-office income, and the releasing time of the film is a key factor of success, which involves the application of game theory.
Take the example of the Snow White War between Universal Pictures and Relativity Media in 2012. The Brothers Grimm: Snow White produced by Relativity was scheduled to be on on June 29, 2012. However, Universal decided to screen Snow White and the Huntsmanon June 1, 2012. This is similar to the prisoners’ dilemma.If they both pull out in pre-production phase, they will only lose smaller amount of money.If only one company releases the film, the company will gain great profit, but if two movies are released at the same time then they will both face significant lost, since the market demand for snow white related movie is not that high.
Based on some background information, we know that Universal is at a better position in this war. Thus there are several solutions for Relativity. First option is to release film earlier. However, rushing to finish a big-budget fantasy might negatively affect the production. The second option is to keep the original releasing date and face the conflict with Universal, which is basically impossible. The third option is to slow down the development and push the release date back. And Relativity decided to move the releasing date of The Brothers Grimm: Snow White forward to March 16, 2012, which is a very bold move, but is also their only chance of being an independent distributor.
External link:Â http://collider.com/snow-white-movie-game-theory/