On enjoying watching movies in a theatre versus at home: a comparative analysis

For most major movies, consumers have a choice to watch them in a theater or on home video. While each viewing channel has its own advantages and disadvantages, consumers are watching the same underlying product—a specific movie. An unanswered question is whether consumers enjoy watching a specific movie more in a theater or video setting. Using IMDb rating data, we find that for most wide-release movies, ratings are higher during the theater window than during the video window. The differences are particularly high for movies with relatively large production budgets and for sequels.