Abstract
Digital technologies and in particular the prevalence of mobile devices and high-speed mobile data networks enable new entertainment products such as location-based games (LBGs). Due to their requirement for constant user mobility, LBGs have the potential to affect individuals' consumption patterns of entertainment products and can thus change the nature of business in the context of this emerging technology. The objective of this study is to identify and measure whether LBGs' advent has shifted the consumption of other entertainment products and generate insights which can support practitioners with their strategic business decisions. To this end, we analyze the consumption of the most popular entertainment products (i.e., TV, PC-based online games, and cinema) before and after the release of Pokémon Go. Our results extend prior literature and show that the effect of LBGs—as a new type of entertainment product—is not confined to one product category but can affect multiple product categories of the entertainment industry. In particular, our estimation results indicate that LBGs can attenuate TV and PC online games consumption, but enhance cinema attendance.
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