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

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  • 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
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    References listed on IDEAS

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    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.
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