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Netflix and the Demand for Cinema Tickets - An Analysis for 19 European Countries

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  • Parlow, Anton
  • Wagner, Sabrina

Abstract

Netflix, as a potential competitor to the cinema industry, was introduced in various European markets between 2012 and 2014. We use movie ticket sales from 2000 to 2016 for 19 European countries to estimate a causal effect of Netflix entering these markets. We find that Netflix has a positive effect on ticket sales. Thus, the Netflix experience can complement the cinema experience. However, preliminary descriptive statistics show, that this effect reverse starting 2016, when Netflix released more high quality and localized content. It is likely, that this development will continue to a trend, and movie tickets sales will decrease further.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:89750
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    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. Wagner, Sabrina & Parlow, Anton, 2018. "Eine Analyse des Einflusses von Netflix und Filesharing auf die Kinoindustrie," Thuenen-Series of Applied Economic Theory 154, University of Rostock, Institute of Economics.
    3. 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.
    4. VÍctor Blanco & JosÉ BaÑos Pino, 1997. "Cinema Demand in Spain: A Cointegration Analysis," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 21(1), pages 57-75, March.
    5. Silver, Jon & McDonnell, John, 2007. "Are movie theaters doomed? Do exhibitors see the big picture as theaters lose their competitive advantage?," Business Horizons, Elsevier, vol. 50(6), pages 491-501.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Movie theater industry; Netflix; VoD;
    All these keywords.

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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