Date of Award
Spring 5-6-2026
Document Type
Thesis
Degree Name
Bachelor of Arts (BA)
Department
Economics
First Advisor
Monica Das
Abstract
The goal of this dissertation was to determine if increased use of streaming media services had replaced movie theater jobs within the United States. Using a balanced panel of 50 U.S. states over the period of 2010-23, a two-way fixed effects model was used to assess the relationship between broadband penetration (as a proxy for streaming) and film industry job growth. Although the fixed-effect coefficient was positive in the overall sample, the coefficients were statistically insignificant. Therefore, it can be inferred that while there may have been some degree of substitution between broadband penetration and film industry job growth, other factors, such as general economic conditions, also play a significant role. However, when non-linearity was included in the regression model, a curve of the form of an inverted-U was observed. The curve turned at approximately 74.21% broadband penetration. At levels below this threshold, broadband and film-related job growth were found to be positively related. Above this level, the substitution effect dominated. The heterogeneity tests provided additional support to this conclusion. It was shown that the substitution effect was greatest in high-income states that had low unemployment rates (i.e., -0.0572; p< 0.01); in addition, states with broadband penetration rates greater than 85% exhibited strong substitution effects (-1.5389; p< 0.001). Additionally, mechanism testing provided some evidence that consumers' viewing habits on streaming media strengthened the substitution effect. Taken together, the findings presented herein suggest that streaming media did not create uniform substitution for film across all states and times. Rather, substitution occurred primarily once sufficient digital diffusion had taken place and in areas where consumers have developed deep habits of using streaming services.
Recommended Citation
Cao, Angel, "The Substitution Effect of Streaming Penetration on Traditional Cinema Employment Evidence from U.S. State-Level Panel Data, 2010–2023" (2026). Economics Student Theses and Capstone Projects. 202.
https://creativematter.skidmore.edu/econ_studt_schol/202