Regulating the Mandatory Participation of TV Networks in Financing the Movie Industry: The Case of Spain

Chapter
Part of the Media Business and Innovation book series (MEDIA)

Abstract

In this paper, we present evidence of an indirect government intervention in the Spanish movie industry. In 1999, the Spanish Government mandated that operating TV networks invest 3% of their receipts on the production of movies in Spanish language. Using a data set of Spanish movies produced between 2000 and 2008, we study the empirical relationship between TV network participation on movie production and box office success. We find that private TV network participation (as opposed to public networks) through production (and not distribution) is associated with higher box office revenues and gross profitability rates, even after controlling for movie production budget.

Keywords

Artsy and cultural criteria Box office Economic performance Econometric model Financing Instrumental variables Production budget Profitability Public regulation Public welfare Public and private investment Returns of investment Spanish movie industry TV network participation 

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Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Universidad de OviedoOviedoSpain
  2. 2.Johns Hopkins UniversityBaltimoreUSA

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