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The Rise and Rise of Cable TV: Demand elasticity of cable television during the Great Recession
Unformatted Document Text:  CABLE SUBSCRPITIONS Appendix Table 1 – Mean unemployment rates for sample markets (US Department of Labor, 2006-2009). Non-Recession Feb 2006 May 2006 July 2006 Nov 2006 Feb 2007 May 2007 July 2007 Nov 2007 Recession-Weak 4.74 4.29 4.82 4.48 4.84 4.59 5.53 5.4 Recession-Strong 4.77 4.3 4.69 3.97 4.43 3.87 4.34 3.83 National Average 4.8 4.0 5.0 4.5 4.5 4.4 4.6 4.7 Recession Feb 2008 May 2008 July 2008 Nov 2008 Feb 2009 May 2009 July 2009 Nov 2009 Recession-Weak 5.94 6.34 7.44 8.46 10.62 11.21 12.2 12.37 Recession-Strong 4.25 4.15 4.64 4.93 6.64 6.74 7.29 6.99 National Average 5.2 5.2 6.0 6.5 8.9 9.1 9.7 9.4 Table 2 – Mean Cable/ADS penetration rates in sample markets (Television Bureau of Advertising, 2006-2009). Non-recession Feb 2006 May 2006 July 2006 Nov 2006 Feb 2007 May 2007 July 2007 Nov 2007 Recession-Weak 84.91 86.08 86.25 86.96 86.2 86.53 87.67 88.12 Recession-Strong 83.96 84.57 84.8 85.62 84.23 84.74 85.48 85.67 National Average 85.7 86.0 86.1 86.6 87.1 88.3 88.6 89.3 Recession Feb 2008 May 2008 July 2008 Nov 2008 Feb 2009 May 2009 July 2009 Nov 2009 Recession-Weak 88.16 88.05 88.04 88.62 89.05 89.57 89.4 90.13 Recession-Strong 86.04 85.76 85.82 86.23 86.72 87.07 86.99 88.24 National Average 89.4 89.5 89.3 90 90.4 90.2 90.8 91 Table 3 – Demand elasticity of Cable/ADS with respect to unemployment in both recession- weak and recession-strong DMA’s, where η = % ∆ Q/% ∆ P (Hoskins, McFadyen, & Finn, 2004). Demand Elasticity % ∆ - Cable/ADS % ∆ - Unemployment η = Recession-Weak 2.64% 92.15% .03 Recession-Strong 2.01% 33.18% .06 15

Authors: Danelo, Matthew.
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CABLE SUBSCRPITIONS
Appendix
Table 1 – Mean unemployment rates for sample markets (US Department of Labor, 2006-2009).
Non-Recession
Feb 2006
May 2006
July 2006
Nov 2006
Feb 2007
May 2007
July 2007
Nov 2007
Recession-Weak
4.74
4.29
4.82
4.48
4.84
4.59
5.53
5.4
Recession-Strong
4.77
4.3
4.69
3.97
4.43
3.87
4.34
3.83
National Average
4.8
4.0
5.0
4.5
4.5
4.4
4.6
4.7
Recession
Feb 2008
May 2008
July 2008
Nov 2008
Feb 2009
May 2009
July 2009
Nov 2009
Recession-Weak
5.94
6.34
7.44
8.46
10.62
11.21
12.2
12.37
Recession-Strong
4.25
4.15
4.64
4.93
6.64
6.74
7.29
6.99
National Average
5.2
5.2
6.0
6.5
8.9
9.1
9.7
9.4
Table 2 – Mean Cable/ADS penetration rates in sample markets (Television Bureau of 
Advertising, 2006-2009).
Non-recession
Feb 2006
May 2006
July 2006
Nov 2006
Feb 2007
May 2007
July 2007
Nov 2007
Recession-Weak
84.91
86.08
86.25
86.96
86.2
86.53
87.67
88.12
Recession-Strong
83.96
84.57
84.8
85.62
84.23
84.74
85.48
85.67
National Average
85.7
86.0
86.1
86.6
87.1
88.3
88.6
89.3
Recession
Feb 2008
May 2008
July 2008
Nov 2008
Feb 2009
May 2009
July 2009
Nov 2009
Recession-Weak
88.16
88.05
88.04
88.62
89.05
89.57
89.4
90.13
Recession-Strong
86.04
85.76
85.82
86.23
86.72
87.07
86.99
88.24
National Average
89.4
89.5
89.3
90
90.4
90.2
90.8
91
Table 3 – Demand elasticity of Cable/ADS with respect to unemployment in both recession-
weak and recession-strong DMA’s, where 
η
 = %
Q/%
P (Hoskins, McFadyen, & Finn, 
2004).
Demand Elasticity
 - Cable/ADS
 - Unemployment
η
 = 
Recession-Weak
2.64%
92.15%
.03
Recession-Strong
2.01%
33.18%
.06
15


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