Publication
The Korean Journal of Economic Studies
The Effects of Vertical Integration on Movie Exhibition in Korea: Foreclosure, Run-length Preference
Keunjae Lee / Sung-Hee Choi / Byeongho ChoeYear 2009Vol. 57No. 2
Abstract
We examine the effects of vertical integration in the Korean movie industryto verify the voice against the dominance of vertically integrated majors in theindustry. Using the screening data of 210 movies exhibited in 34 cinemas inSeoul in 2006, we find no evidence that the movies distributed by localindependent distributors are foreclosed by integrated cinemas. We also findthat integrated cinemas tend to play their own movies longer than othermovies, and thus market outcome in terms of run-length is improved byvertical integration. Interestingly, integrated cinemas appear to exhibit morediverse movies than independent cinemas