Prof. Lisa M. George (University of Pennsylvania)
- Datum: 09.07.2012
- Zeit: 16:00 - 17:30
- Ort: Schackstr. 4/III, Raum 307
The Market for Diversity in Local Television News
A substantial body of economic theory considers the link between competition and variety in differentiated product markets, yet empirical evidence of product differentiation strategies in media markets remains thin. In particular, we know virtually nothing of differentiation strategies in television news, which remains the primary news source for US households. This paper studies the causes and consequences of differentiation in local television news programs. We develop a revealed preference measure of viewer loyalty from television viewership. We link this demand-based differentiation measure: (1) to news coverage, to determine points of differentiation in television news; (2) to news viewership, to evaluate the value of differentiation to consumers; and (3) to advertising prices, to establish the value of loyalty in the advertising market. Preliminary results show that ideological differentiation is important in television news, with coverage of ideological topics associated with greater loyalty and higher viewership. Greater business coverage and less government coverage is also associated with loyalty. Greater loyalty is associated with higher news viewership overall, and higher advertising prices per viewer.