TY - JOUR
T1 - The impact of social distancing on box-office revenue
T2 - Evidence from the COVID-19 pandemic
AU - Kim, In Kyung
N1 - Funding Information:
I thank two anonymous referees and Thomas Otter, the Editor, for excellent comments and suggestions that helped to improve this paper. Financial support from the Seed Program for Korean Studies through the Ministry of Education of the Republic of Korea (AKS-2018-INC-2230011) and the Small Grant Program at Nazarbayev University (SHSS2018004) is gratefully acknowledged.
Publisher Copyright:
© 2020, Springer Science+Business Media, LLC, part of Springer Nature.
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2020
Y1 - 2020
N2 - In this paper, I study the short-run effect of social distancing due to the COVID-19 outbreak on movie demand and box-office revenue. Using longitudinal data on the Korean movie theater industry, I first estimate a nested logit model of movie demand, and then quantify the revenue loss in the industry. Estimation results reveal that the revenue loss due to the decrease in underlying movie demand is approximately 52 million dollars nationwide during the first five weeks after the outbreak, implying a 34 percent decrease in sales. The results also suggest an additional 42 million dollars were lost as the delay of some major movies lowered the overall quality of available movies in the market.
AB - In this paper, I study the short-run effect of social distancing due to the COVID-19 outbreak on movie demand and box-office revenue. Using longitudinal data on the Korean movie theater industry, I first estimate a nested logit model of movie demand, and then quantify the revenue loss in the industry. Estimation results reveal that the revenue loss due to the decrease in underlying movie demand is approximately 52 million dollars nationwide during the first five weeks after the outbreak, implying a 34 percent decrease in sales. The results also suggest an additional 42 million dollars were lost as the delay of some major movies lowered the overall quality of available movies in the market.
KW - COVID-19
KW - Movie theater industry
KW - Nested logit model
KW - Social distancing
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U2 - 10.1007/s11129-020-09230-x
DO - 10.1007/s11129-020-09230-x
M3 - Article
AN - SCOPUS:85092922974
VL - 19
SP - 93
EP - 125
JO - Quantitative Marketing and Economics
JF - Quantitative Marketing and Economics
SN - 1570-7156
IS - 1
ER -