After three decades of decreasing admissions, cinema attendance in Europe showed a significant rise during the nineties despite the competition of several audiovisual media. This growth in ticket sales must be compared with the declining share of exhibition in total film revenues. Exhibition is still very important to signal the quality of a movie, revealing through the tickets sold the consumer preferences, but its role in overall revenues of film industry has been declining from a share of 50% in 1980 to less than of 15% in 2008 at least for Hollywood productions. In this paper we try to test the role of multiplex. While usually multiplex is analysed in supply side since it can reduce the cost of exhibition through scale economies in several function, we focus on demand side. The positive role of multiplex is related to the risk reduction of the audience and the improved condition of new theatres. We explore the movie demand evolution in Europe with a data set of 15 countries from 1989 to 2003. We estimate with a panel approach a simple demand function of film exhibition with yearly tickets per inhabitant as dependent variable where as expected price coefficient is negative and income coefficient is positive. Multiplex diffusion, indicated as the percentage of multiplex seats over total seats, appears to be moderately positive and is 1% significant. The results are robust to different model specification

Demand for movies in Europe and the effects of multiplex diffusion : a aanel approach / O. Dessy, M. Gambaro - In: The media industries and their markets / [a cura di] P-Y. Badillo, J.B. Lesourd. - London : Palgrave Macmillan, 2010. - ISBN 9780230277700. - pp. 207-219

Demand for movies in Europe and the effects of multiplex diffusion : a aanel approach

M. Gambaro
Ultimo
2010

Abstract

After three decades of decreasing admissions, cinema attendance in Europe showed a significant rise during the nineties despite the competition of several audiovisual media. This growth in ticket sales must be compared with the declining share of exhibition in total film revenues. Exhibition is still very important to signal the quality of a movie, revealing through the tickets sold the consumer preferences, but its role in overall revenues of film industry has been declining from a share of 50% in 1980 to less than of 15% in 2008 at least for Hollywood productions. In this paper we try to test the role of multiplex. While usually multiplex is analysed in supply side since it can reduce the cost of exhibition through scale economies in several function, we focus on demand side. The positive role of multiplex is related to the risk reduction of the audience and the improved condition of new theatres. We explore the movie demand evolution in Europe with a data set of 15 countries from 1989 to 2003. We estimate with a panel approach a simple demand function of film exhibition with yearly tickets per inhabitant as dependent variable where as expected price coefficient is negative and income coefficient is positive. Multiplex diffusion, indicated as the percentage of multiplex seats over total seats, appears to be moderately positive and is 1% significant. The results are robust to different model specification
Consumer economics ; Industry studies ; Performing arts
Settore SECS-P/06 - Economia Applicata
Book Part (author)
File in questo prodotto:
Non ci sono file associati a questo prodotto.
Pubblicazioni consigliate

Caricamento pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2434/205334
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact