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http://hdl.handle.net/10419/29560
  
Title:Getting beer during commercials: adverse effects of Ad-Avoidance PDF Logo
Authors:Stuehmeier, Torben
Wenzel, Tobias
Issue Date:2009
Series/Report no.:IWQW discussion paper series 10/2009
Abstract: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 increased avoidance opportunities decrease profits and entry in the free-to-air regime. In contrast, in the pay-TV regime, lower income from advertisements are compensated by higher subscription income leaving profits and the number of channels unaflected. Bypassing advertising messages affects welfare ambiguously.
Subjects:Media Markets
Two-Sided Markets
Ad-avoidance
JEL:L11
L13
Document Type:Working Paper
Appears in Collections:IWQW Discussion Paper Series, FAU Erlangen-Nürnberg

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