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Does Netflix Matter: the Impact on the American Box Office

Student: Yusufova Rut

Supervisor: Olga E. Kuzina

Faculty: International College of Economics and Finance

Educational Programme: Double degree programme in Economics of the NRU HSE and the University of London (Bachelor)

Final Grade: 7

Year of Graduation: 2019

With the decline of the American movie theatre attendance in the last 15 years, we propose a hypothesis that like in the times before the 21st century, the main reason for such occurrence is the emergence of a substitute – Netflix’s streaming service feature. We use a panel data for the box office revenues in the US and China in 2003-2017 to estimate Netflix’s impact and find that both Netflix’s whole content and its high-quality original content serve as powerful substitutes to the moviegoing experience.

Full text (added June 13, 2019)

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