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| Author: | Lang, D.M. Switzer, D.M. Swartz, B.J. |
| Title: | DVD sales and the R-rating puzzle |
| Journal: | Journal of Cultural Economics
2011 : VOL. 35:4, p. 267-286 |
| Index terms: | USA film industry sales |
| Freeterms: | cinemas motion pictures movies box office |
| Language: | eng |
| Abstract: | During the last decade, attendance at movie theaters has been relatively frozen, with dramatically growing sales of digital versatile discs (DVDs). This paper deals with the factors determining sales of individual DVDs in the United States (U.S.) Based on data on new motion pictures released on DVD from 2006 to 2008, it is found that the demand for new DVDs is price-inelastic and that DVD sales are counter-cyclical. Previous box office success is found to have strong positive effects on DVD sales. It can be suggested that DVD sales are higher for movies with more sexual content and more violent content and lower for movies with more profanity, but these effects are indirect through the changes in the box office of these movies. Sales of R-rated DVDs is found not to be as dependent on critical acclaim as movies of other ratings, thus being less risky for movie studios to produce. |
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