Is video streaming hurting box office revenues at U.S. theaters?

Gabriela Duarte de Souza (), Marislei Nishijima () and Mauro Rodrigues

No 2024_20, Working Papers, Department of Economics from University of São Paulo (FEA-USP)

Abstract: Given the scarcity of data on video streaming consumption, few studies have attempted to measure its effects on other traditional film media. To overcome this literature gap, we evaluate the impact of streaming indirectly by exploring the early introduction of Netflix streaming services in the U.S. as an intervention. We use the Australian market as a comparison group, given that Netflix was not available in that country until 2015. Using a sample of films released in the U.S. and Australia between 2004 and 2014, we document that the launch of Netflix streaming services in 2007 is associated with a reduction of 14 to 17% in box office revenues.

Keywords: Streaming video; Netflix; cinema; films; technology; movie theaters (search for similar items in EconPapers)
JEL-codes: L8 L82 L86 O33 (search for similar items in EconPapers)
Date: 2024-07-01
New Economics Papers: this item is included in nep-cul
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