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

Parlow, Anton and Wagner, Sabrina (2018): Netflix and the Demand for Cinema Tickets - An Analysis for 19 European Countries.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Movie theater industry, Netflix, VoD
• Subjects: L - Industrial Organization > L8 - Industry Studies: Services > L82 - Entertainment ; Media

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