The impact of social distancing on box-office revenue: Evidence from the COVID-19 pandemic

• DOI: 10.1007/s11129-020-09230-x
• Publication Date: 2020-10-21T07:02:58Z
• Authors: In Kyung Kim
• Keywords: Social distance; Box Office; Pandemic; 2019-20 coronavirus outbreak; Film Industry

In this paper, I study the short-run effect of social distancing due to COVID-19 outbreak on movie demand and box-office revenue. Using longitudinal data Korean theater industry, first estimate a nested logit model demand, then quantify revenue loss in industry. Estimation results reveal that decrease underlying is approximately 52 million dollars nationwide during five weeks after outbreak, implying 34 percent sales. The also suggest an additional 42 were lost as delay some major movies lowered overall quality available market.