IDEAS home Printed from https://ideas.repec.org/a/isp/journl/v17y2023i1p146-165.html
   My bibliography  Save this article

Cinema Visit Or Home Theatre: The Threat Of Video-On-Demand For German Cinemas

Author

Listed:
  • Helmut Wittenzellner
  • Rodrigo Carlos Valverde Bustamante

Abstract

German cinema attendance fell precipitously due to the pandemic, continuing a steady decrease that has plagued German cinema culture for more than a decade. A decline that creates uncertainty about the future of movie theatres and that cannot be solely attributed to the pandemic. Thus, begging the question, if the rise of Video-on-Demand can explain this phenomenon. Specifically, this study examines whether Video-on-Demand and the decline in cinema attendance in Germany may have a causal relationship beyond a correlation. Based on panel data collected by the German Federal Film Board from the ‘Kinobesucher*innen’ and ‘Der Home-Video-Market’ studies, a correlation coefficient and multiple linear regression analyses are conducted to determine the relationship between Video-on- Demand and cinema attendance. The causal effect of Video-on-Demand on cinema attendance is marginal. In order to complement the multiple linear regression analysis, a survey is developed to understand the audiences' reasons for and against a cinema visit. The results of the survey are reproduced and compared with the results obtained from two statistically significant multiple linear regression models. Although Germany has influenced and benefited from the seventh art since its inception, Germany is struggling to entice its citizens back to movie theaters. Demographic change and the shrinking theatrical distribution window are among the factors contributing to the daunting task facing German cinemas.

Suggested Citation

  • Helmut Wittenzellner & Rodrigo Carlos Valverde Bustamante, 2023. "Cinema Visit Or Home Theatre: The Threat Of Video-On-Demand For German Cinemas," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 17(1), pages 146-165.
    • Handle: RePEc:isp:journl:v:17:y:2023:i:1:p:146-165
    as

    Download full text from publisher

    File URL: https://www.scientific-publications.net/get/1000060/1698073634304265.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ralf Dewenter & Michael Westermann, 2005. "Cinema Demand In Germany," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(3), pages 213-231, August.
    2. Peter Macmillan & Ian Smith, 2001. "Explaining Post-War Cinema Attendance in Great Britain," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 25(2), pages 91-108, May.
    3. Orietta DESSY & Marco GAMBARO, 2008. "Demand for movies in Europe and the effects of multiplex diffusion: a panel approach," Departmental Working Papers 2008-25, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Böhme Enrico & Müller Christopher, 2011. "Searching for the Concentration-Price Effect in the German Movie Theater Industry," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 231(4), pages 479-493, August.
    2. Eiji Yamamura, 2014. "The effect of young children on their parents’ anime-viewing habits: evidence from Japanese microdata," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(4), pages 331-349, November.
    3. Tylor Orme & Harold L. Vogel, 2020. "Is the Motion-Pictures Industry Recession Proof?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 26(4), pages 363-375, November.
    4. Louis Lévy-Garboua & Claude Montmarquette, 2011. "Demand," Chapters, in: Ruth Towse (ed.), A Handbook of Cultural Economics, Second Edition, chapter 26, Edward Elgar Publishing.
    5. Baranowski Paweł & Korczak Karol & Zając Jarosław, 2020. "Forecasting Cinema Attendance at the Movie Show Level: Evidence from Poland," Business Systems Research, Sciendo, vol. 11(1), pages 73-88, March.
    6. Parlow, Anton & Wagner, Sabrina, 2018. "Netflix and the Demand for Cinema Tickets - An Analysis for 19 European Countries," MPRA Paper 89750, University Library of Munich, Germany.
    7. Yamamura, Eiji, 2013. "Externality of young children on parents’ watching of anime: Evidence from Japanese micro data," MPRA Paper 46878, University Library of Munich, Germany.
    8. Ricard Gil & Fernanda Gutierrez-Navratil, 2017. "Does Television Entry Decrease The Number Of Movie Theaters?," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 736-756, April.
    9. Sangho KIM & Donghyun PARK, 2010. "Addictive behavior in cinema demand: evidence from Korea," Economic Growth Centre Working Paper Series 1002, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    10. Christopher Müller & Enrico Böhme, 2011. "A note on the relationship of mainstream and art house movie theaters," Economics Bulletin, AccessEcon, vol. 31(1), pages 29-34.
    11. Cuccia, Tiziana, 2009. "A Contingent Ranking Study on the Preferences of Tourists across Seasons/A Contingent Ranking Study on the Preferences of Tourists across Seasons," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 27, pages 161-176, Abril.
    12. Victor Fernandez-Blanco & Luis Orea & Juan Prieto-Rodriguez, 2013. "Endogeneity and measurement errors when estimating demand functions with average prices: an example from the movie market," Empirical Economics, Springer, vol. 44(3), pages 1477-1496, June.
    13. Pablo Brañas-Garza & Maria Paz Espinosa, 2011. "Unraveling Public Good Games," Games, MDPI, vol. 2(4), pages 1-18, November.
    14. M. Rimscha, 2013. "It’s not the economy, stupid! External effects on the supply and demand of cinema entertainment," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 37(4), pages 433-455, November.
    15. Henry Aray & Betty Agnani, 2007. "And the Oscar goes to ..... Peeeeedrooooo!," ThE Papers 07/03, Department of Economic Theory and Economic History of the University of Granada..
    16. Ralf Dewenter & Michael Westermann, 2005. "Cinema Demand In Germany," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 29(3), pages 213-231, August.
    17. Marshall, Pablo & Dockendorff, Monika & Ibáñez, Soledad, 2013. "A forecasting system for movie attendance," Journal of Business Research, Elsevier, vol. 66(10), pages 1800-1806.
    18. Pablo De la Vega & Sara Suarez-Fernández & David Boto-García & Juan Prieto-Rodríguez, 2020. "Playing a play: online and live performing arts consumers profiles and the role of supply constraints," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(3), pages 425-450, September.
    19. Sora Park, 2015. "Changing patterns of foreign movie imports, tastes, and consumption in Australia," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(1), pages 85-98, February.
    20. Orietta DESSY & Marco GAMBARO, 2008. "Demand for movies in Europe and the effects of multiplex diffusion: a panel approach," Departmental Working Papers 2008-25, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isp:journl:v:17:y:2023:i:1:p:146-165. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Svetoslav Ivanov (email available below). General contact details of provider: https://www.scientific-publications.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.