Gravity and Trade in Video on Demand Services

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Title: Gravity and Trade in Video on Demand Services
Authors: Broocks, AnnetteStudnicka, Zuzanna
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Date: 3-Dec-2021
Online since: 2022-02-28T16:23:41Z
Abstract: We estimate the patterns of catalogue availability (extensive margin) and number of clicks per title (intensive margin) using a novel data set containing the information on Netflix catalogues and viewing across 20 countries. Our results show evidence of the gravity framework explaining both margins of Netflix watching. In particular, we find that Netflix users have a strong preference for domestic productions. Detailed information on film and TV show characteristics gives us a unique opportunity to estimate the importance of quality in determining the patterns of Netflix watching. Independent viewers’ ratings and a title’s age play a key role in explaining the number of clicks directed at a particular title. Finally, Netflix Original productions attract a disproportionately large number of clicks.
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Start page: 1
End page: 31
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP2021/27
Copyright (published version): 2021 the Authors
Keywords: NetflixSubscription video on demandGravity equationServices trade
JEL Codes: F10; L82; Z10
Language: en
Status of Item: Not peer reviewed
This item is made available under a Creative Commons License:
Appears in Collections:Economics Working Papers & Policy Papers

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