@article{ART003309213},
author={Kim Sung Jun and Choong-Han Yoon},
title={Inter-Media Competition and Changes in Price Elasticities in the Korean Movie Industry},
journal={Analyses & Alternatives},
issn={2508-822X},
year={2026},
volume={10},
number={1},
pages={273-288},
doi={10.22931/aanda.2026.10.1.010}
TY - JOUR
AU - Kim Sung Jun
AU - Choong-Han Yoon
TI - Inter-Media Competition and Changes in Price Elasticities in the Korean Movie Industry
JO - Analyses & Alternatives
PY - 2026
VL - 10
IS - 1
PB - Korea Consensus Institute
SP - 273
EP - 288
SN - 2508-822X
AB - This paper empirically demonstrates the occurrence of changes in price elasticity and inter-media competition between movies and SVOD (Subscription Video on Demand) platforms, specifically focusing on Netflix's entry into the South Korean market. Following the proliferation of Netflix, our estimation reveals a significant increase in the own-price elasticity of demand for theater-released movies in Korea, indicating a transition from inelastic to elastic demand. Furthermore, the cross-price elasticity of demand between theater-released movies and Netflix is found to be positive, confirming they are substitutes. This competitive relationship involving media substitution between theatrical films and SVOD extends prior research that mainly focused on SVOD substitution for paid broadcasting services. Analyzing panel data from 17 metropolitan cities in Korea spanning from 2005 to 2019, the study estimates the own-price elasticity of demand increased significantly from –0.655 before Netflix's entry to –3.216 afterward, with a cross-price elasticity of 0.744 relative to Netflix. This empirical finding is intriguing as it contradicts the finding of a complementary relationship presented by Parlow et al. Strategically, the shift to price-elastic demand suggests that raising movie ticket prices is no longer appropriate for improving the corporate performance of the movie industry.
KW - Demand for Movies;SVOD;Netflix;Price Elasticity;Inter-Media Competition;Media Substitution
DO - 10.22931/aanda.2026.10.1.010
ER -
Kim Sung Jun and Choong-Han Yoon. (2026). Inter-Media Competition and Changes in Price Elasticities in the Korean Movie Industry. Analyses & Alternatives, 10(1), 273-288.
Kim Sung Jun and Choong-Han Yoon. 2026, "Inter-Media Competition and Changes in Price Elasticities in the Korean Movie Industry", Analyses & Alternatives, vol.10, no.1 pp.273-288. Available from: doi:10.22931/aanda.2026.10.1.010
Kim Sung Jun, Choong-Han Yoon "Inter-Media Competition and Changes in Price Elasticities in the Korean Movie Industry" Analyses & Alternatives 10.1 pp.273-288 (2026) : 273.
Kim Sung Jun, Choong-Han Yoon. Inter-Media Competition and Changes in Price Elasticities in the Korean Movie Industry. 2026; 10(1), 273-288. Available from: doi:10.22931/aanda.2026.10.1.010
Kim Sung Jun and Choong-Han Yoon. "Inter-Media Competition and Changes in Price Elasticities in the Korean Movie Industry" Analyses & Alternatives 10, no.1 (2026) : 273-288.doi: 10.22931/aanda.2026.10.1.010
Kim Sung Jun; Choong-Han Yoon. Inter-Media Competition and Changes in Price Elasticities in the Korean Movie Industry. Analyses & Alternatives, 10(1), 273-288. doi: 10.22931/aanda.2026.10.1.010
Kim Sung Jun; Choong-Han Yoon. Inter-Media Competition and Changes in Price Elasticities in the Korean Movie Industry. Analyses & Alternatives. 2026; 10(1) 273-288. doi: 10.22931/aanda.2026.10.1.010
Kim Sung Jun, Choong-Han Yoon. Inter-Media Competition and Changes in Price Elasticities in the Korean Movie Industry. 2026; 10(1), 273-288. Available from: doi:10.22931/aanda.2026.10.1.010
Kim Sung Jun and Choong-Han Yoon. "Inter-Media Competition and Changes in Price Elasticities in the Korean Movie Industry" Analyses & Alternatives 10, no.1 (2026) : 273-288.doi: 10.22931/aanda.2026.10.1.010
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