Enrique Dans

On the effects of technology and innovation on people, companies and society (writing in Spanish at…

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Who said Netflix would kill off the movies?

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IMAGE: A comic-style illustration with two panels, one showing a person watching Netflix at home and the other with the same person going to the cinema

In a world where streaming platforms have come to dominate the entertainment landscape, it’s easy to assume that traditional movie theaters are in decline. However, an interesting study based on data from South Korea published in Information Systems Research, “Return of the movie night?” Analyzing the impact of Netflix subscriptions on offline movie spending, shows that many people who subscribe to Netflix and similar video-on-demand services actually go to the cinema more often.

According to the study, which analyzes individual transaction data, after subscribing to Netflix, people tend to increase their spending on movie tickets, a correlation that challenges the common belief that streaming replaces offline experiences. The South Korean market does not necessarily have to be representative of the whole world — let’s not forget the fact that most South Koreans in urban environments tend to live in very small apartments which may justify an interest in getting out of them from time to time in search of more open environments — but in any case, it is very interesting.

Why? One possible explanation is that while Netflix offers convenience and a wide selection of content, it can’t replicate the social and sensory experience associated with going to the movies. The big screen, the surround sound and the emotion shared with other viewers are…

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Enrique Dans
Enrique Dans

Published in Enrique Dans

On the effects of technology and innovation on people, companies and society (writing in Spanish at enriquedans.com since 2003)

Enrique Dans
Enrique Dans

Written by Enrique Dans

Professor of Innovation at IE Business School and blogger (in English here and in Spanish at enriquedans.com)

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