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DOES TELEVISION ENTRY DECREASE THE NUMBER OF MOVIE THEATERS?
Author(s) -
Gil Ricard,
GutierrezNavratil Fernanda
Publication year - 2017
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/ecin.12414
Subject(s) - revenue , box office , competition (biology) , film industry , attendance , advertising , television industry , business , media industry , economics , marketing , focus (optics) , economic impact analysis , movie theater , industrial organization , microeconomics , finance , political science , economic growth , public relations , art , optics , biology , art history , ecology , physics
This paper empirically examines the impact of competition in the television (TV) industry on the number of movie theaters, their attendance, and their box office revenues. Studies of firm entry usually focus on the impact of regulation on economic outcomes within an industry, thereby neglecting its impact on neighboring industries. Using changes in regulation in the Spanish local TV station industry, we estimate the impact of TV entry on the movie theater industry between 1993 and 2005. Our findings show that local TV entry decreased the number of theaters and screens in a province, as well as movie attendance and box office revenues. ( JEL L11, L43, L82)