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Comparison of television and gate demand in the National Basketball Association

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  • Kevin Mongeon
  • Jason Winfree

Abstract

► This paper uses four linear regressions to analyze the differences between the determinants of economic demand for television audiences and gate attendance. ► We find that fans who watch the games on television are 4.5 times more sensitive to winning and that the demand for television audiences is decreased more by direct substitutes compared to gate demand. ► From our findings, particularly regarding winning and substitutes, enhanced models describing league and team behavior are prescribed.This study analyzes the differences between the determinants of economic demand for television audiences and gate attendance. Due to data availability problems, there are few studies focused on television demand for North American sports leagues, and most of those studies do not compare the differences between television and live game audiences. The primary determinants of demand that are compared are income, team quality, and both direct and indirect substitutes. Using data from the National Basketball Association (NBA), we find that fans who attend games live are inherently different from fans who watch games on television. Although insignificant to gate attendance, income is an inferior good to television audiences. Fans who watch the games on television are 4.5 times more sensitive to winning. The demand for television audiences is decreased more by direct substitutes compared to gate demand. However, demand for gate attendance is decreased more by indirect substitutes compared to television demand.

Suggested Citation

  • Kevin Mongeon & Jason Winfree, 2012. "Comparison of television and gate demand in the National Basketball Association," Sport Management Review, Taylor & Francis Journals, vol. 15(1), pages 72-79, January.
    • Handle: RePEc:taf:rsmrxx:v:15:y:2012:i:1:p:72-79
    DOI: 10.1016/j.smr.2011.09.001
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    Cited by:

    1. Hojun Sung & Brian M. Mills, 2018. "Estimation of game-level attendance in major league soccer: Outcome uncertainty and absolute quality considerations," Sport Management Review, Taylor & Francis Journals, vol. 21(5), pages 519-532, December.
    2. Sang Hun Sung & Doo-Seung Hong & Soo Young Sul, 2020. "How We Can Enhance Spectator Attendance for the Sustainable Development of Sport in the Era of Uncertainty: A Re-Examination of Competitive Balance," Sustainability, MDPI, vol. 12(17), pages 1-15, August.
    3. Chmait, Nader & Robertson, Sam & Westerbeek, Hans & Eime, Rochelle & Sellitto, Carmine & Reid, Machar, 2020. "Tennis superstars: The relationship between star status and demand for tickets," Sport Management Review, Elsevier, vol. 23(2), pages 330-347.
    4. Brad R. Humphreys & Li Zhou, 2015. "The Louis–Schmelling Paradox and the League Standing Effect Reconsidered," Journal of Sports Economics, , vol. 16(8), pages 835-852, December.
    5. Grimshaw Scott D. & Sabin R. Paul & Willes Keith M., 2013. "Analysis of the NCAA Men’s Final Four TV audience," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 9(2), pages 115-126, June.
    6. Georgios Nalbantis & Tim Pawlowski & Dominik Schreyer, 2023. "Substitution Effects and the Transnational Demand for European Soccer Telecasts," Journal of Sports Economics, , vol. 24(4), pages 407-442, May.
    7. Brian M. Mills & Rodney Fort, 2023. "Performance Quality Preference Heterogeneity in Major League Baseball," Journal of Sports Economics, , vol. 24(3), pages 352-373, April.
    8. Stefan Szymanski & Jason Winfree, 2018. "On The Optimal Realignment Of A Contest: The Case Of College Football," Economic Inquiry, Western Economic Association International, vol. 56(1), pages 483-496, January.
    9. Tainsky, Scott & Kerwin, Shannon & Xu, Jie & Zhou, Yilun, 2014. "Will the real fans please remain seated? Gender and television ratings for pre-game and game broadcasts," Sport Management Review, Elsevier, vol. 17(2), pages 190-204.
    10. Raul Caruso & Francesco Addesa & Marco Di Domizio, 2019. "The Determinants of the TV Demand for Soccer: Empirical Evidence on Italian Serie A for the Period 2008-2015," Journal of Sports Economics, , vol. 20(1), pages 25-49, January.
    11. Brian M. Mills & Michael Mondello & Scott Tainsky, 2016. "Competition in shared markets and Major League Baseball broadcast viewership," Applied Economics, Taylor & Francis Journals, vol. 48(32), pages 3020-3032, July.
    12. Kevin Mongeon & Jason Winfree, 2013. "The Effects of Cross-Ownership and League Policies Across Sports Leagues Within a City," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 43(3), pages 145-162, November.
    13. Jyh-How Huang & Chung-Yi Lu & Yu-Chia Hsu, 2023. "Potential Baseball Fan Engagement: The Determinants of a New Television Audience in the Chinese Professional Baseball League during the COVID-19 Pandemic," Sustainability, MDPI, vol. 15(4), pages 1-14, February.
    14. Aigbe Akhigbe & Melinda Newman & Ann Marie Whyte, 2021. "Is There a Differential Market Size Effect in U.S. Free Agent Signings? Evidence From Localized Sentiment Trading," Journal of Sports Economics, , vol. 22(6), pages 678-721, August.
    15. Brown, Katie M. & Salaga, Steven, 2018. "NCAA football television viewership: Product quality and consumer preference relative to market expectations," Sport Management Review, Elsevier, vol. 21(4), pages 377-390.

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