Program Substitutability in Network Television: Evidence from Argentina

27 Pages Posted: 8 Feb 2012 Last revised: 20 Nov 2014

See all articles by Octavian Carare

Octavian Carare

Federal Communications Commission (FCC)

Alejandro Zentner

University of Texas at Dallas - Naveen Jindal School of Management

Date Written: January 20, 2012

Abstract

Inference about television program substitutability from the consumer perspective is complicated by unobserved shocks to viewership and endogenous programming choices by television networks. High-frequency changes in program scheduling are commonplace in Argentina. This paper uses this variation in program scheduling as an instrumental variable in order to measure the degree of substitution across the programs broadcast by the five network television stations in a large Argentinean market. In line with the results of prior studies, the results of this paper show evidence of substantial business stealing in network television: increases in the ratings of a station primarily decrease the ratings of other stations. However, the estimates also show that the increases in ratings attributable to new viewers entering the market range between 3 and 5 percentage points for each 10-point increase in a channel’s viewership. The size of this market expansion effect is significantly larger than that found by prior studies.

Suggested Citation

Carare, Octavian and Zentner, Alejandro, Program Substitutability in Network Television: Evidence from Argentina (January 20, 2012). Information Economics and Policy, Vol. 24(2), pp. 145-160, 2012. Available at SSRN: https://ssrn.com/abstract=2001032

Octavian Carare (Contact Author)

Federal Communications Commission (FCC) ( email )

445 12th Street SW
Rm. TW-B204
Washington, DC 20554
United States

Alejandro Zentner

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

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