How big is the big screen? Understanding the demand for experience goods: the case of the Swedish cinema market

Sammanfattning: In this study, we analyze the factors that affect demand for theatrical films in Sweden, how they do so, and how these factors change with regards to a film's regional origin. An ordinary least squares model with cinema admissions as the dependent variable is developed on a sample of 1293 films released on Swedish cinemas in between 2012 and 2016. The findings in this study show that ten independent variables - source material, whether a film is a sequel, runtime, reviews, genre, aggregate demand seasonality, number of opening screens, type of distributor, age limit and director - significantly explain demand, out of which source material is tested for the first time in this context. The findings also show that the effects of these independent variables significantly differ depending on whether or not a film is Swedish, from Anglo Saxon countries or from non-Swedish and non-Anglo Saxon countries. This study is therefore the first in this field of research to demonstrate a moderating effect of a film's regional origin on the film audience's perception of the film.