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Friedrich-Alexander-Universität Erlangen-Nürnberg (FAU) >
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IWQW Discussion Paper Series, FAU Erlangen-Nürnberg >
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http://hdl.handle.net/10419/29560
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| Title: | | Getting beer during commercials: adverse effects of Ad-Avoidance  |
| 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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