Movie Release Dates: Who Blinks First? Adam Cruse Brad Hirsch Krunch Kloberdanz Brawley Reishman Andy Ward January 23, 2003

Rules of the Game The date of a movie’s release impacts profitability Historically, major movies released during the holiday season gross more than movies released during any other time of the year We (Warner Bros.) face a crowded holiday market Two competitors are also ready to release their films Neither we nor our competitors has announced a release date When to release? – Holidays (Nov. 15 – Dec. 31) – Post – Holidays (Jan. 1 – Feb. 15) – Later (Feb. 15 – Nov. 15)

Percentage Payoffs Number of Competitors’ Films Released During the Same Period 012 Release Date Holidays Post-Holiday Later Percentage of average revenue expected

Game Analysis

Conclusions Warner Brothers is facing a game of chicken. In order to break the simultaneous game they must move first and signal a later launch. This move forces the other two into a holiday launch. The payoff for Warner Brothers: $897,000!