Paper Number

ICIS2025-2749

Paper Type

Complete

Abstract

The digital marketing landscape has transformed with video platforms where consumers simultaneously encounter firm-generated content (FGC) and user-generated content (UGC), yet their interactive effects remain underexplored. Using YouTube data and daily box-office performance from 505 movies, we examine how UGC moderates FGC's impact on firm performance. While both content types independently boost revenue, UGC negatively moderates FGC effectiveness—though combined effects remain positive at low UGC levels, they turn negative when UGC volume is sufficiently high. Drawing on signaling theory and cognitive dissonance theory, we identify conflicting quality signals as the underlying mechanism. The negative moderating effect is driven by directional UGC providing explicit evaluations, not non-directional content showcasing products. Content diversity and audience response disparities intensify this relationship, while external quality signals attenuate it. These findings challenge assumptions that more digital content universally benefits firms, offering strategic guidance for managing multiple content sources in competitive information environments.

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Dec 14th, 12:00 AM

The Moderating Effect of User-Generated Content on Firm-Generated Content: Evidence from the US Box Office

The digital marketing landscape has transformed with video platforms where consumers simultaneously encounter firm-generated content (FGC) and user-generated content (UGC), yet their interactive effects remain underexplored. Using YouTube data and daily box-office performance from 505 movies, we examine how UGC moderates FGC's impact on firm performance. While both content types independently boost revenue, UGC negatively moderates FGC effectiveness—though combined effects remain positive at low UGC levels, they turn negative when UGC volume is sufficiently high. Drawing on signaling theory and cognitive dissonance theory, we identify conflicting quality signals as the underlying mechanism. The negative moderating effect is driven by directional UGC providing explicit evaluations, not non-directional content showcasing products. Content diversity and audience response disparities intensify this relationship, while external quality signals attenuate it. These findings challenge assumptions that more digital content universally benefits firms, offering strategic guidance for managing multiple content sources in competitive information environments.

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