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The Impact of Time Shifting on TV Consumption and Ad Viewership

Author

Listed:
  • Rodrigo Belo

    (Rotterdam School of Management, Erasmus University, 3062 PA Rotterdam, Netherlands)

  • Pedro Ferreira

    (Heinz College and Department of Engineering and Public Policy, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213)

  • Miguel Godinho de Matos

    (Católica Lisbon School of Business and Economics, Universidade Católica Portuguesa, 1200-781 Lisbon, Portugal)

  • Filipa Reis

    (Católica Lisbon School of Business and Economics, Universidade Católica Portuguesa, 1200-781 Lisbon, Portugal)

Abstract

In this paper we study the impact of time shifting on TV consumption and ad viewership. We analyze the results of a field experiment in which a random sample of “triple-play” households were given a set of premium TV channels broadcasting popular movies and TV shows without commercial breaks. A random subset of these households were given access to these channels with time shifting (automated cloud recording for later viewing or rewinding of broadcasted programs), while the remainder were not. This design allowed us to identify the effects of time shifting on TV consumption. On average, we found that receiving access to the channels with time shifting increased total TV consumption because it increased time-shifted viewership while leaving live viewership unchanged. The increase in the live viewership of these channels was similar to the reduction in the live viewership of the originally available channels, resulting in a net zero effect on live viewership. It appears that time shifting does not change the concentration of live viewership, but it does increase the concentration of total TV viewership, because it is used disproportionately to watch the most popular programs. Finally, we found that time shifting does not change the likelihood of skipping ads during live viewership, suggesting that households do not use time shifting to strategically avoid ads.

Suggested Citation

  • Rodrigo Belo & Pedro Ferreira & Miguel Godinho de Matos & Filipa Reis, 2019. "The Impact of Time Shifting on TV Consumption and Ad Viewership," Management Science, INFORMS, vol. 65(7), pages 3216-3234, July.
    • Handle: RePEc:inm:ormnsc:v:65:y:2019:i:7:p:3216-3234
    DOI: 10.1287/mnsc.2018.3084
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    References listed on IDEAS

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    Cited by:

    1. Miguel Godinho de Matos & Pedro Ferreira, 2020. "The Effect of Binge-Watching on the Subscription of Video on Demand: Results from Randomized Experiments," Information Systems Research, INFORMS, vol. 31(4), pages 1337-1360, December.
    2. Jordi McKenzie, 2023. "The economics of movies (revisited): A survey of recent literature," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 480-525, April.
    3. Song, Lianlian & Zhang, Qiuxiang & Hu, Baixue & Mou, Jian, 2022. "To resist or to purchase: The causal mechanism of binge-watching and program purchase," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).

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