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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 RQ 1: Do Cable/ADS penetration rates correlate with the unemployment rate in media markets hit hardest by the recent economic recession? Hypothesis 1: In accordance with the PIH, Cable/ADS services will positively correlate with the unemployment rate in these markets. RQ 2: Did demand for Cable/ADS services remain inelastic throughout the recession? Hypothesis 2: Demand for Cable/ADS services remained inelastic throughout the recession. Method To test H1, a quasiexperimental field design was utilized by gathering secondary data from the Brookings Institute, United States Department of Labor, and the Television Bureau of Advertising. The Brookings Institute is a respected think tank that monitors nationwide economic data and trends. The US Department of Labor keeps track of local, statewide, and national employment data; and the Television Bureau of Advertising monitors Cable/ADS consumer-driven data. Sample A sample of major metropolitan markets (N=20) was selected for testing by first analyzing the most recent rankings of cities with negative economic impacts during the period of recession (Brookings, 2010). The Brookings Institute index used to classify these cities was an aggregate of the following indicators: employment rates, unemployment rates, Gross Metropolitan Product, housing prices, and real estate-owned properties (2010). Brookings – a non-partisan, public policy institute – pulls data for these indicators from the following sources: United States Census Bureau, Moody’s Analytics, the United States Department of Labor, and the Federal Housing Finance Agency House Price Index (2010). Only the 100 largest 6

Authors: Danelo, Matthew.
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CABLE SUBSCRPITIONS
RQ 1: Do Cable/ADS penetration rates correlate with the unemployment rate in media 
markets hit hardest by the recent economic recession?
Hypothesis 1: In accordance with the PIH, Cable/ADS services will positively correlate 
with the unemployment rate in these markets.
RQ 2: Did demand for Cable/ADS services remain inelastic throughout the recession?
Hypothesis 2: Demand for Cable/ADS services remained inelastic throughout the 
recession.
Method
To test H1, a quasiexperimental field design was utilized by gathering secondary data 
from the Brookings Institute, United States Department of Labor, and the Television Bureau of 
Advertising. The Brookings Institute is a respected think tank that monitors nationwide 
economic data and trends. The US Department of Labor keeps track of local, statewide, and 
national employment data; and the Television Bureau of Advertising monitors Cable/ADS 
consumer-driven data.
Sample
A sample of major metropolitan markets (N=20) was selected for testing by first 
analyzing the most recent rankings of cities with negative economic impacts during the period of 
recession (Brookings, 2010). The Brookings Institute index used to classify these cities was an 
aggregate of the following indicators: employment rates, unemployment rates, Gross 
Metropolitan Product, housing prices, and real estate-owned properties (2010).  Brookings – a 
non-partisan, public policy institute – pulls data for these indicators from the following sources: 
United States Census Bureau, Moody’s Analytics, the United States Department of Labor, and 
the Federal Housing Finance Agency House Price Index (2010). Only the 100 largest 
6


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