Cinema Demand in Korea

This study analyzes the determinants of cinema demand in Korea for 1963 to 2004. The study specifies a time series-based simultaneous-equations model and considers some variables that have not been included in other studies of cinema demand at the national level. The estimation results indicate that cinema demand increases with an increase in the variety and quality of movies but decreases with an increase in admission price and television diffusion. Moreover, cinema services are a substitute for trips to cultural facilities and a complement to cable television services. The results also indicate that attendance and income are significant determinants of cinema supply.