Because little is known about how U.S. households allocate resources to entertainment, the purpose of this paper is to quantitatively document the structure of entertainment consumption. The structure is decomposed along three dimensions. First, the data are analyzed to extract their trending components. Next, we extract the cyclical properties of the data. Finally, the data are analyzed in order to describe the impact of demographics on entertainment demand. To analyze each of the dimensions, the authors use the Bureau of Labor Statistics’ Consumer Expenditure Survey dataset for the period 1984-2009. This unique survey extends a time period that enables estimation of long run and cyclical trends and is detailed enough to provide demographic and categorical properties. It is shown that spending has significantly changed within and across our eight entertainment categories. It is also shown that total entertainment consumption and most of the components are counter-cyclical to a measure of the health of the U.S. economy. With respect to demographics, the results show that many obvious determinants such as family income, region, and education significantly influence entertainment consumption. Surprisingly, even when controlling for income, race of the head of household significantly affects the probability of entertainment consumption.
Keywords: entertainment consumption, entertainment demand, household consumption, trend, music industry, entertainment industry, Consumer Expenditure Survey, Bureau of Labor Statistics
Fowler, Stuart J., and Jennifer J. Fowler. “A Quantitative
Analysis of Entertainment Consumption: 1984-2009.” Journal of the Music and Entertainment Industry Educators Association 11, no. 1 (2011): 39-60. https://doi.org/10.25101/11.2