Abstract
Economists have long debated how advertising should be treated in a rational-choice framework. Using unique data from the broadcast networks’ 1995 Fall Network Season, we find that sitcoms attract premia from advertisers, while news and police programs get discounted. We interpret our findings according to two important theoretical treatments of advertising. Because the broadcast networks forgo advertising-unfriendly program content, the cable channel HBO responds with a deliberate counter-programming niche strategy, explicitly airing programming with “darker” and “more difficult” advertising-unfriendly content.
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“The networks have essentially by given up on viewers with functional IQ’s.” – Dean Valentine, President of UPN
The views in this paper are my own and do not represent the views of the Federal Communications Commission, its Commissioners, or its staff.
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Brown, K., Cavazos, R. Why is This Show so Dumb? Advertising Revenue and Program Content of Network Television. Rev Ind Organ 27, 17–34 (2005). https://doi.org/10.1007/s11151-005-4836-6
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DOI: https://doi.org/10.1007/s11151-005-4836-6