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.
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