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

Author

Listed:
  • Gabriela Duarte de Souza
  • Marislei Nishijima
  • Mauro Rodrigues

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.

Suggested Citation

  • Gabriela Duarte de Souza & Marislei Nishijima & Mauro Rodrigues, 2024. "Is video streaming hurting box office revenues at U.S. theaters?," Working Papers, Department of Economics 2024_20, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2024wpecon20
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    More about this item

    Keywords

    Streaming video; Netflix; cinema; films; technology; movie theaters;
    All these keywords.

    JEL classification:

    • L8 - Industrial Organization - - Industry Studies: Services
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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