Brand Extension Strategies in the Film Industry: Factors behind Financial Performance of Adaptations and Sequels

ABSTRACT In the film industry, which is notoriously high risk, sequels and adaptations stand out as successful films. Conceptualizing adaptations and sequels as extended brands, this paper takes an in-depth look at brand extension strategies in the film industry by analyzing films released from 2010 to 2013 in the U.S. This paper puts forward five adaptations types by their source materials (i.e., adaptations from video games; TV series; toy lines; comic books; and books), and examines which types of adaptations are successful at the worldwide box office. Specifically, two theatrical performance indicators are considered: gross and profit. In terms of worldwide box office gross, the results suggest that adaptations from comic books and toy lines are successful, and those produced as sequels are even more successful. However, when production budgets are additionally taken into account, in terms of worldwide box office profit, none of the five adaptations types appear more successful than original films. Still, adaptations from comic books and toy lines produced as sequels are highly profitable at the worldwide box office.