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
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
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