Ad-Avoidance Technology - Who Should Welcome It?

Type/nr A17/12
Skrevet av Harald Nygård Bergh

The business model of many commercial TV-networks is to interrupt TV programs with advertising breaks. In this paper we investigate consequences of the fact that ad-averse viewers today can adopt technology which enables them to skip the advertising breaks. Perhaps somewhat surprisingly, we find that the ad-avoidance technology can make TV networks and the advertisers better off. The viewers as a group however, are always worse off when we take into account their costs associated with adopting the technology.


Språk Skrevet på engelsk