Prime-Time Any Time: The Effect of Time-Shifted TV on Media Consumption

17 Pages Posted: 2 Apr 2013 Last revised: 15 Aug 2013

See all articles by Rodrigo Belo

Rodrigo Belo

Rotterdam School of Management, Erasmus University

Miguel Godinho de Matos

School of Business and Economics, Católica-Lisbon; Carnegie Mellon University

Pedro Ferreira

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management; Carnegie Mellon University - Department of Engineering and Public Policy

Date Written: March 31, 2013

Abstract

We work with a large telecommunication provider that started offering a new time-shift service to their clients. We characterize some of the changes that time-shifted television is triggering on television consumption patterns and discuss the implications for consumers and the industry stake holders alike. We find evidence consistent with the super-star effect in which the most popular contents become even more popular at the expense of the less popular contents. This suggests that being able to watch any content at any time increases the overall viewership of prime-time content in detriment of other content, skewing the content viewership distribution. Looking at consumer subscriptions, we find evidence that time-shift TV increased the rate at which new consumers join the telecommunication provider, at the same time it also increased the rate at which consumers subscribing bundles that not capable of time shifting, decided to upgrade their service.

Keywords: Television, Time Shift, Digital Video Recording, DVR, Media, Telecommunications, Churn, Consumer Behavior

JEL Classification: L96, C10, D12, L82

Suggested Citation

Belo, Rodrigo and Godinho de Matos, Miguel and Ferreira, Pedro, Prime-Time Any Time: The Effect of Time-Shifted TV on Media Consumption (March 31, 2013). TPRC 41: The 41st Research Conference on Communication, Information and Internet Policy. Available at SSRN: https://ssrn.com/abstract=2242531 or http://dx.doi.org/10.2139/ssrn.2242531

Rodrigo Belo

Rotterdam School of Management, Erasmus University ( email )

RSM Erasmus University
PO Box 1738
Rotterdam, 3062 PA
Netherlands

HOME PAGE: http://www.rsm.nl/people/rodrigo-belo/

Miguel Godinho de Matos (Contact Author)

School of Business and Economics, Católica-Lisbon ( email )

Palma de Cima
Lisbon, Lisboa 1649-023
Portugal

Carnegie Mellon University ( email )

Pittsburgh, PA 15213
United States

Pedro Ferreira

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )

Pittsburgh, PA 15213-3890
United States

Carnegie Mellon University - Department of Engineering and Public Policy ( email )

Baker Hall 129
5000 Forbes Ave
Pittsburgh, PA 15213
United States

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