THE IMPACT OF SOCIAL DISTANCING ON BOX-OFFICE REVENUE: EVIDENCE FROM THE COVID-19 PANDEMIC
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Date
2020-10-21
Authors
Kim, Kyung
Journal Title
Journal ISSN
Volume Title
Publisher
Quantitative Marketing and Economics
Abstract
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
Description
Keywords
Type of access: Open Access, COVID-19, Social distancing, Movie theater industry, Nested logit model
Citation
Kim, I. K. (2020). The impact of social distancing on box-office revenue: Evidence from the COVID-19 pandemic. Quantitative Marketing and Economics, 19(1), 93–125. https://doi.org/10.1007/s11129-020-09230-x