The Word-Of-Mouth effect on social networks and its impact on the Film Industry

Abstract

Based on the growth of the use of social networks as communication platforms, and the exchange of ideas and opinions, we analyze the concept of the phenomenon “word-of-mouth” and the impact it causes on the Film Industry. In order to reach veridic and pertinent results, a series of research articles have been analyzed to find a reliable and rigorous approach to develop the subject. The introduction presents the concepts that will develop the storyline through this review, and the causes of the evolution of advertising and selling an audiovisual product. Firstly, it is presented the concept of the WOM , along with its origins and how it has been developed throughout history. The study continues analyzing the transformation of WOM towards the digital format and, nowadays, how its importance has suddenly increased. Social networks and WOM are related concepts. Therefore, we investigate how they complement and influence each other, thus bringing this merger to the world of the Film Industry. Following the introduction, we develop the study dividing it in two different sections: the first one focused on the pre-release effect of the WOM, and the second section develops the subject on the post-release effect. Each section is organized in different matters. The pre-release segment is about the current film market and its historical methods to deduce the popularity of an audiovisual product. Then we bring in the WOM effect section, emphasizing its importance to the film market. Henceforth, the methods of study and measurement of the WOM effect are carried out. The post-release segment initiates with two new recent concepts: social media and consumers, both used as a tool. This is the segment where both, WOM and social networks, converge into one, and how this fusion ends up affecting the Film Industry on another level. The study is settled with a conclusion, which folds up the entire phenomenon of the WOM effect on social networks and its impact on the Film Industry, and how consumers have become an active agent on the market thanks to the Internet.