Distribution Planning To Optimize Profits In The Motion Picture Industry
This paper considers the distribution planning problem in the motion picture industry. This problem involves forecasting theater-level box office revenues for a given movie and using these forecasts to choose the best locations to screen a movie. Authors first develop a method that predicts theater-level box office revenues over time for a given movie as a function of movie attributes and theater characteristics. These estimates are then used by the distributor to choose where to screen the movie. The distributor's location selection problem is modeled as an integer programming based optimization model that chooses the location of theaters in order to optimize profits.