TY - JOUR
T1 - Getting beer during commercials
T2 - adverse effects of ad-avoidance
AU - Stühmeier, Torben
AU - Wenzel, Tobias
PY - 2011
Y1 - 2011
N2 - This paper studies the impact of ad-avoidance behavior in media markets. We consider a situation where viewers can avoid advertisement messages. As the media market is a two-sided market, increased ad-avoidance reduces advertisers' value of placing an ad. We contrast two financing regimes, free-to-air and pay-TV. We find that a higher viewer responsiveness to advertising decreases revenues and entry in the free-to-air regime. In contrast, in the pay-TV regime, lower income from advertisements is compensated by higher subscription income leaving revenues and the number of channels unaffected for a fixed total viewership.
AB - This paper studies the impact of ad-avoidance behavior in media markets. We consider a situation where viewers can avoid advertisement messages. As the media market is a two-sided market, increased ad-avoidance reduces advertisers' value of placing an ad. We contrast two financing regimes, free-to-air and pay-TV. We find that a higher viewer responsiveness to advertising decreases revenues and entry in the free-to-air regime. In contrast, in the pay-TV regime, lower income from advertisements is compensated by higher subscription income leaving revenues and the number of channels unaffected for a fixed total viewership.
KW - Ad-avoidance
KW - Media markets
KW - Two-sided markets
UR - http://www.scopus.com/inward/record.url?scp=79952039827&partnerID=8YFLogxK
UR - http://dx.doi.org/10.1016/j.infoecopol.2010.09.002
U2 - 10.1016/j.infoecopol.2010.09.002
DO - 10.1016/j.infoecopol.2010.09.002
M3 - Article
AN - SCOPUS:79952039827
SN - 0167-6245
VL - 23
SP - 98
EP - 106
JO - Information Economics and Policy
JF - Information Economics and Policy
IS - 1
ER -