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The Evolution of Entertainment Consumption and the Emergence of Cinema, 1890–1940

In: The Evolution of Consumption: Theories and Practices

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  • Gerben Bakker

Abstract

At the end of the nineteenth century, in the era of the second industrial revolution, falling working hours, rising disposable income, increasing urbanisation, rapidly expanding transport networks and strong population growth resulted in a sharp rise in the demand for entertainment. Initially, the expenditure was spread across different categories, such as live entertainment, sports, music, bowling alleys or skating rinks. One of these categories was cinematographic entertainment, a new service, based on a new technology. Initially it seemed not more than a fad, a novelty shown at fairs, but it quickly emerged as the dominant form of popular entertainment. This paper argues that the take-off of cinema was largely demand-driven, and that, in an evolutionary process, consumers allocated more and more expenditure to cinema. It will analyse how consumer habits and practices evolved with the new cinema technology and led to the formation of a new product/service.

Suggested Citation

  • Gerben Bakker, 2007. "The Evolution of Entertainment Consumption and the Emergence of Cinema, 1890–1940," Advances in Austrian Economics, in: The Evolution of Consumption: Theories and Practices, pages 93-137, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:aaeczz:s1529-2134(07)10005-3
    DOI: 10.1016/S1529-2134(07)10005-3
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    References listed on IDEAS

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    1. Gerben Bakker, 2005. "The decline and fall of the European film industry: sunk costs, market size, and market structure, 1890–1927," Economic History Review, Economic History Society, vol. 58(2), pages 310-351, May.
    2. Horrell, Sara, 1996. "Home Demand and British Industrialization," The Journal of Economic History, Cambridge University Press, vol. 56(3), pages 561-604, September.
    3. Bakker, Gerben, 2001. "Stars and Stories: How Films Became Branded Products," Enterprise & Society, Cambridge University Press, vol. 2(3), pages 461-502, September.
    4. Bakker,Gerben, 2011. "Entertainment Industrialised," Cambridge Books, Cambridge University Press, number 9781107403499.
    5. Bakker, Gerben, 2006. "The Making of a Music Multinational: PolyGram's International Businesses, 1945–1998," Business History Review, Cambridge University Press, vol. 80(1), pages 81-123, April.
    6. Bakker, Gerben, 2004. "At the origins of increased productivity growth in services. Productivity, social savings and the consumer surplus of the film industry, 1900-1938," Economic History Working Papers 22348, London School of Economics and Political Science, Department of Economic History.
    7. Feinstein,Charles H. & Thomas,Mark, 2002. "Making History Count," Cambridge Books, Cambridge University Press, number 9780521001373.
    8. Gerben Bakker, 2003. "Building Knowledge about the Consumer: The Emergence of Market Research in the Motion Picture Industry," Business History, Taylor & Francis Journals, vol. 45(1), pages 101-127.
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    Cited by:

    1. Allègre L. Hadida & Joseph Lampel & W. David Walls & Amit Joshi, 2021. "Hollywood studio filmmaking in the age of Netflix: a tale of two institutional logics," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(2), pages 213-238, June.
    2. Gerben Bakker, 2011. "Leisure Time, Cinema and the Structure of Household Entertainment Expenditure, 1890–1940," Chapters, in: Samuel Cameron (ed.), Handbook on the Economics of Leisure, chapter 16, Edward Elgar Publishing.

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    More about this item

    JEL classification:

    • N0 - Economic History - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • B1 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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