Why Do You Like What You Like? The Impact of Previous Netflix User Ratings on Subsequent User Experience

Colorado College Working Paper 2016-03

22 Pages Posted: 21 Feb 2020

See all articles by Anthony Hyatt

Anthony Hyatt

Colorado College - Department of Economics and Business

Daniel K. N. Johnson

Colorado College - Department of Economics and Business; NAACP Legal Defense and Educational Fund

Date Written: July 9, 2016

Abstract

This paper examines whether Netflix user ratings can be explained by a combination of the movies’ characteristics and the influence of popular opinion. Using a data set of almost 8 million user ratings for 300 movies, we use a 2SLS framework to find that time, movie characteristics, and measures of commercial success are statistically significant explanatory variables of viewer ratings. Popular opinion carries a sizeable amount of sway as well, and the results indicate that movies on Netflix do in fact age like a fine bottle of wine.

Keywords: movie, Netflix, word-of-mouth, word-of-mouse, 2SLS

JEL Classification: M3, Z11, D12

Suggested Citation

Hyatt, Anthony and Johnson, Daniel Kent Neil, Why Do You Like What You Like? The Impact of Previous Netflix User Ratings on Subsequent User Experience (July 9, 2016). Colorado College Working Paper 2016-03, Available at SSRN: https://ssrn.com/abstract=2807475 or http://dx.doi.org/10.2139/ssrn.2807475

Anthony Hyatt

Colorado College - Department of Economics and Business ( email )

14 E Cache La Poudre Street
Colorado Springs, CO 80903
United States

Daniel Kent Neil Johnson (Contact Author)

Colorado College - Department of Economics and Business ( email )

14 E Cache La Poudre Street
Colorado Springs, CO 80903
United States
719-389-6654 (Phone)
719-389-6927 (Fax)

HOME PAGE: http://faculty1.coloradocollege.edu/~djohnson

NAACP Legal Defense and Educational Fund ( email )

40 Rector St.
5th Floor
New York, NY 10006
United States

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