The economics of TV tune-in |
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| Institution: | 1. School of Economics and Management, Changzhou Institute of Technology, CZ Reform and Development of Entrepreneurship and Innovation & Research Center, Changzhou, Jiangsu, 213032, China;2. School of Economics and Management, Changzhou Institute of Technology, Changzhou, Jiangsu, 213032, China;1. University of Tunis, High Institute of Management, Tunis, Tunisia;2. College of Business Administration, AlBaha University, Saudi Arabia;3. Univ. Manouba, ESCT, RIM RAF, UR13ES56, Tunisia;4. University of Jeddah, College of Business, Department of Accounting, Jeddah, Saudi Arabia;5. University of Tunis, ISG, GEF-2A Lab, Tunis, Tunisia;6. University of Manouba, ESC, Manouba, Tunisia;1. European Commission, DG Joint Research Centre, Via Fermi 2749, I-21027, Ispra VA, Italy;2. Inter-American Development Bank, Calle 50 con Elvira Méndez, Tower Bank, Floor 23, Panama City, Panama;1. Department of Humanities and Social Sciences, Indian Institute of Technology Kharagpur, India;2. Indira Gandhi Institute of Development Research, Mumbai, India;1. Universidad Autónoma de Madrid, Spain;2. Universidad Complutense de Madrid, Spain;1. European University at St. Petersburg, 6/1A Gagarinskaya Str., St. Petersburg, 191187, Russia;2. Department of Economics, Feliciano School of Business, Montclair State University, Montclair, NJ, USA |
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| Abstract: | TV tune-in, namely the preview of forthcoming programs, is an important type of TV advertising. We examine TV tune-in as a continuous variable. First, tune-in can increase profits when TV stations are sufficiently differentiated and the market is partially covered. Second, tune-in crowds out program quality. Third, tune-in lowers advertisement supply. Further, tune-in can increase profits in a partially covered market if firms are sufficiently differentiated. Otherwise, it leads to low profits. We also identify the effects of tune-in on consumer surplus and social welfare and suggest that tune-in should be prohibited whenever it lowers program quality and social welfare. |
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| Keywords: | Tune-in Quality Commercial advertising D83 L13 M37 |
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