Jehoshua Eliashberg - Faculty Research in Knowledge@Wharton

The Customer Lifetime Value Equation: Will It Pay Off for Tech Companies?

Wed, 07 Dec 2011 15:00:31 EST

Amazon will lose money on each Kindle Fire it sells. Sprint is not expected to turn a profit selling Apple's iPhone for at least three years. Both companies are banking on customer lifetime value (CLV), a marketing formula based on the idea of spending money up front to gain customers whose loyalty will reap rewards over the long term. The model is becoming more and more popular among technology companies, and as software companies increasingly turn to subscription-based business models through cloud computing, CLV will become an even larger issue, according to Wharton experts.

Risky Business Becomes Riskier: A New Playbook for How Artists Are Compensated

Wed, 16 Feb 2011 15:29:54 EST

Making a living as an artist has never been easy -- whether in film, music or publishing -- especially now that the digital revolution has transformed the business of content creation. One of the biggest shifts is in how filmmakers, musicians and writers are compensated. The trend is toward greater risk sharing with artists' marketers and publishers, and toward pay being based to a greater degree on how the product sells in the marketplace.

Cures for an Industry Crisis: Big Pharma Scrambles to Find New Ways to Develop Drugs Faster

Thu, 10 Feb 2011 09:00:54 EST

Companies are turning to new methods of developing drugs as blockbusters lose patent protection. These models include partnerships with universities and the sharing of once closely guarded warehouses of compounds. A key focus of the research is "translational medicine" -- whose goal is to replace traditional one-size-fits-all drugs with personalized treatments for patients with specific genetic profiles.

For AT&T, Is There Life after the Verizon iPhone?

Wed, 19 Jan 2011 16:05:35 EST

As AT&T's exclusive partnership to offer the iPhone dwindles to its final days, many are already speculating about how Apple's deal to sell the device through Verizon will affect AT&T's bottom line. While conventional wisdom is that AT&T will face a challenging 2011 without sole rights to sell the iPhone, say Wharton experts, the company still has a chance to minimize any damage inflicted by Verizon.

Demographic Changes: A Catalyst for New Models in the Global Tourism Industry

Wed, 14 Jul 2010 14:25:33 EST

For years, the tourism industry grew almost effortlessly. Those days are over. Tough economic conditions have awakened companies in the industry to the fact that they must better anticipate customers' needs and reinvent their business models. That was the theme of a panel discussion at the recent Wharton Global Alumni Forum in Madrid. Panelists spoke about population shifts, the need for greater concentration in the sector and the rise of new middle class consumers with a desire to travel.

Betting on Future Movie Receipts: Beware the Hollywood Lemons

Wed, 28 Apr 2010 14:56:07 EST

Wouldn't it be great if you could invest in a new film that you thought might be a real blockbuster? Now maybe you can. On Tuesday, April 20, the U.S. Commodity Futures Trading Commission approved a movies futures exchange -- sponsored by Cantor Fitzgerald investment bank -- that will match buyers and sellers of future movie receipts. But given the way some futures exchanges work, how good an investment is this for individuals? In this personal finance column, Wharton professor Kent Smetters offers some answers.

Grab Your Goggles: Will 3-D Be the Next Wave in Home Entertainment?

Wed, 17 Feb 2010 17:36:07 EST

James Cameron's three-dimensional (3-D) film Avatar -- now the highest-grossing film of all time -- is helping to set the stage for what could be the next wave in home entertainment: 3-D televisions and other electronics that aim to bring an immersive experience to mainstream living rooms. At the Consumer Electronics Show in Las Vegas in January, Sony and other companies unveiled plans to launch 3-D compatible televisions and other products, and 3-D content is already under development at networks such as ESPN. Still, Wharton faculty and other experts say it's unclear whether consumers, who have spent recent years upgrading to high-definition television, will reach for their 3-D goggles just yet.

Apple's iPad: A Gadget Killer -- or Just Another Gadget?

Wed, 03 Feb 2010 16:52:49 EST

Apple, which brought consumers such hits as the iPod and iPhone, is wading into a new product category with the launch of its iPad, a touch-screen tablet computer that CEO Steve Jobs has said puts "the Internet in your hands" -- and apparently much more. In fact, Apple has positioned the iPad as a universal device that not only functions like a laptop but also can play music, movies and video games, show pictures and hold a library of books. That puts it in direct competition with netbooks and popular single-use gadgets like Amazon's e-book reader, the Kindle. Will iPad be the one device that fits all, or will it just become one more gadget to juggle?

Reel Time: The Incredible Shrinking Window for Movie Releases

Tue, 24 Nov 2009 16:13:30 EST

A decade ago, movie fans who wanted to forgo paying theater admission waited an average of five months before they could watch a film in their own living rooms. Today, the window between theatrical releases and distribution via other channels like DVDs and cable television has shrunk to four months or less -- and in some cases has even disappeared, with films making their debuts simultaneously in multiple channels. According to Wharton faculty, declining DVD sales and other pressures mean that studios are likely to continue experimenting aggressively with movie release timing. Still, the pleasure of watching a movie in a darkened theater is not likely to go away any time soon, they say.

Can Lean Co-exist with Innovation?

Wed, 11 Nov 2009 13:33:02 EST

Does lean's structure and discipline snuff out the creative spark that underlies the birth and development of great ideas? In fact, lean brings structure and predictability to innovation, and sharpens the distinction between idea generation and the development process. If a company as innovation-driven as Pixar can apply lean principles to innovation, then others can, too.

Netflix: One Eye on the Present and Another on the Future

Wed, 28 Oct 2009 17:19:29 EST

In a year when DVD sales are falling and studios are facing major shakeups in their executive ranks, the movie industry has at least one success story to cheer about: Netflix. Despite the recession, the Los Gatos, Calif.-based company continues to thrive and is now in a race to transition to a business model focused on streaming content online while continuing to exploit its current model based on physical DVD distribution. According to Wharton faculty, Netflix has managed this balancing act deftly so far, but growing competition in digital distribution means that it may not have an advantage for long.

The Disney/Marvel Marriage: Will They Live Happily Ever After?

Wed, 16 Sep 2009 16:45:37 EST

Trying to picture the edgy, ultra-macho characters of Marvel Comics (like Spider-Man or the Hulk) teaming up with Walt Disney's fairy tale princesses and cheery spokesmouse is not an easy task. Nonetheless, Wharton faculty and entertainment analysts predict Disney's $4 billion acquisition of Marvel will overcome some major challenges and allow the company to instantly enter a key market where, as of now, it has made few inroads.

The iPhone in China: Will Apple Connect with the World's Biggest Mobile Market?

Wed, 16 Sep 2009 16:45:37 EST

Global launches can be rocky, as Apple knows well. Last year, the company introduced its iPhone in India, but instead of the throngs of consumers seen at launch events in the U.S., the journalists assigned to cover the rollout reportedly outnumbered the customers. According to experts, the problems included a lack of marketing and a price tag set too high for Indian consumers. Now, as Apple prepares for an October launch of the iPhone in China in cooperation with service provider China Unicom, many are wondering if it will face similar hang-ups in the world's largest cell phone market.

The Crowded, Caffeinated Soft Drink Sector: Who Will Bubble Up to the Top?

Wed, 02 Sep 2009 16:37:02 EST

The ritual is now a part of big-time, as well as small-town, football games. As the clock winds down, players grab an orange vat with a green label and douse the winning coach. This "Gatorade shower" has made the sports drink one of the world's best-known brands and helped pave the way for other niche products and beverage categories that now compete with traditional carbonated soft drinks. What marketing challenges do soft drink companies face, especially given health concerns and the recessionary economy? Wharton faculty and other experts weigh in.

Bing Gives Microsoft a Boost, but Can It Compete with Google?

Wed, 05 Aug 2009 16:41:52 EST

Early reports show that Microsoft's new search engine, Bing, has managed to draw more users than its predecessor, Live Search. According to Wharton faculty, however, while Microsoft's campaign to promote Bing has been successful so far, it is unclear whether its well-funded effort will make significant inroads in a market dominated by Google. On the other hand, they believe the campaign helped pressure Yahoo into an important partnership agreement after months of fitful negotiations.

In a Recessionary Summer, Hollywood's Fondness for the Familiar Only Grows

Wed, 05 Aug 2009 16:41:52 EST

Why is Hollywood in love with tried-and-true sequels and established franchises rather than producing original scripts? According to Wharton faculty, the industry's embrace of the sequel is an attempt to minimize its risk during an uncertain time, when the motion picture business finds its usual sources of funding and revenues under pressure from the recession. "If studio [executives] launch a movie where ... the merchandizing channels already exist, they are less likely to walk into a big box office disaster which could bury them financially when they can least afford it," says one expert.

How Casinos Can Find and Target Their Favorite Customers: The Biggest Losers

Wed, 13 May 2009 16:53:27 EST

Casino owners want to do a better job of identifying and attracting customers who lose the most money. Three researchers, including two Wharton faculty, offer a model to do just that. Their findings could be applicable to other areas as well, including hotel management, retail sales and the car rental business.

3D Movies: Adding Depth or Falling Flat?

Wed, 01 Oct 2008 17:54:21 EST

Dreamworks Animation CEO Jeffrey Katzenberg called the latest 3D movie technology "the greatest innovation to occur in the movie business in 70 years." A bevy of theater chains are exploring or installing digital cinema and 3D systems in the second half of 2008 into 2009. Intel and others are creating tools for companies to make a new generation of 3D animation films. Experts at Wharton say 3D movies are back in vogue, but it's unclear whether the latest greatest technology can give theaters a sustainable competitive advantage over other forms of entertainment.

New Products (Like the iPhone): Announce Early or Go for the Surprise Rollout?

Wed, 13 Jun 2007 14:33:58 EST

When it comes to rolling out new goods and services, companies tend to choose one of two strategies as a way of generating interest in their products, whether it's Apple's iPhone or Microsoft's Surface Computing effort. One is pre-announcing the product to give customers, partners and even competitors advance notice of what's to come. The second approach is the surprise unveiling, where a company hopes to make a big splash by giving few advance hints about an upcoming release. Which approach is best? It depends -- on the product, the company and its position in the market, say experts at Wharton.

Anime: Japan's 'Gross National Cool'

Wed, 29 Nov 2006 13:58:49 EST

Giant robot men, wide-eyed princesses and epic battles in a post-apocalyptic age: Can this be the stuff of Japan's next great industry? Japan built the world's second-largest economy on electronics and automobiles. Now animated entertainment, known as anime, is a growing global industry whose fans spend more than $5 billion on film and DVDs and an additional $18 billion on anime-linked merchandise. "Anime is creating new interest in all things Japanese, including business," says one anime-watcher.

Blu-ray vs. HD-DVD: Knocking Each Other Out?

Wed, 15 Nov 2006 16:21:19 EST

High definition televisions are expected to be hot sellers this holiday season, but consumers are likely to have a tough time sorting out the newest generation video discs and the players that go with them. The culprit: Two competing high definition DVD formats -- Blu-ray and HD-DVD -- and no sign of a clear winner.

If You Were in Charge, How Would You Market These Products?

Wed, 31 May 2006 14:49:23 EST

With more and more advertising vehicles crowding today's marketing environment -- including traditional print, television and radio ads, product placements, Internet buzz, viral campaigns and cell phone messaging -- marketers have new opportunities to reach vast pools of potential customers. But the tangle of options also requires any successful marketing plan to take into account the nature of the product, its durability in the public's mind and the advertising budget needed to make it all work. As Wharton professor David Bell notes: It's very hard to find "the one big lever that can reach a whole lot of people in a way that is cost-effective." Knowledge@Wharton asked four Wharton marketing professors how they would go about launching two hypothetical products, a summer blockbuster movie and a cell phone.

The Home-video Market: Who Rents, Who Buys and Why

Wed, 08 Feb 2006 16:31:18 EST

When the door to a TLA Entertainment video store swings open, the primary question facing most consumers shuffling inside is relatively simple: "What movie will I take home tonight?" But to Wharton marketing professor Jehoshua Eliashberg and Wharton doctoral candidate George Knox, the key question surrounding the burgeoning $12 billion home-video market goes at least one step further: Which consumers will rent their movie of choice tonight, and which consumers will buy? In a study entitled, "The Consumer's Rent vs. Buy Decision: The Case of Home-Video," Eliashberg and Knox present a new model that they say accurately predicts the consumer's decision to rent or buy a particular movie at a video store.

Comcast vs. Disney: Facts and Fantasia

Wed, 10 Mar 2004 16:03:37 EST

For Brian Roberts, CEO of cable giant Comcast, the problem may boil down to this: What do you do with the Magic Kingdom? Two weeks ago, Roberts made a $49 billion bid for the embattled Walt Disney Co. Disney's board rejected the offer, but no one expects Roberts' effort to end there. Chances are, he will bid again. Whether he should is another matter. Will buying Disney give Comcast much-needed leverage as it negotiates with competitors such as Rupert Murdoch's News Corp.?

Is Nemo Ready to Swim with the Sharks?

Wed, 25 Feb 2004 15:03:40 EST

Steve Jobs, CEO of Pixar, has pulled the plug on the company's marketing and distribution deal with the Walt Disney Company. The announcement set off a storm of speculation about potential replacement partners for Pixar, which has had a highly successful year with films such as Finding Nemo. Meanwhile, Disney's own future is in play after Comcast, the largest cable operator in the

U.S.

, made a $54 billion bid on Feb. 11 to take it over. How will these situations play out? The answer will be coming soon … to a movie theater near you.

Has the Kingdom of Disney Lost its Magic?

Wed, 11 Sep 2002 00:00:00 EST

The Walt Disney Company is suffering these days, with sagging revenues, declining theme park attendance, and poor ABC ratings. Why is it so hard for Disney to keep up its once golden reputation, and what lies ahead for the company and CEO Michael Eisner? Wharton faculty and other experts point to a number of troublesome issues facing Disney, including a weak economy, some unhappy board members and the fickle, high-stakes entertainment business.

The Mega-media Business Model: Doomed to Fail, or Just Ahead of its Time?

Wed, 31 Jul 2002 00:00:00 EST

With its drastically lower stock price and an SEC investigation into its accounting practices, AOL Time Warner appears to be the latest poster child of America's mega-corporate meltdown. What happened to the once-talked-of synergies between �old media� and �new media� and between content and delivery that these mergers once trumpeted? Is the mega-media concept flawed, poorly-executed, or just not quite ready for prime time?

Challenges Ahead for Vivendi�s New CEO

Wed, 31 Jul 2002 00:00:00 EST

Vivendi Universal�s Jean-Marie Messier, a very public casualty on the information superhighway, is buried alongside other such supposed telecom industry visionaries as AOL Time Warner�s Robert Pittman and Bertelsmann�s Thomas Middelhoff. Yet Vivendi differs significantly from these two companies. A water utility that tried to transform itself into a global media powerhouse, Vivendi and new CEO Jean-René Fourtou are in a life-threatening struggle for survival.

Marketing Science Meets Hollywood

Mon, 19 Mar 2001 14:05:20 EST

Would any company spend $75 million making and launching a new product without looking into whether the public is likely to buy it? The movie industry, leery of decision-support systems and forecasting tools, does it all the time. But that could change if movie studios pay heed to research by Wharton�s Jehoshua Eliashberg and several colleagues.

A Model to Manage Movie Screens

Wed, 23 Jun 1999 08:00:00 EST

Moviegoers are hardly the only people with tough choices to make in picking flicks. Managers and theater-owners face an oversupply of films, not enough screens on which to show them, and they must make frequent, complex choices over which movies they select to screen. Using SilverScreener, a mathematical model devised by Jehoshua Eliashberg of Wharton along with Sanjiv Swami and Charles Weinberg of the University of British Columbia, managers of theaters can more accurately determine which films should be replaced first and which are still drawing crowds.