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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 metropolitan areas – those with more than 500,000 residents as of 2007 – are indexed, which resulted in a collective of two-thirds of the nations workforce and three-quarters of its Gross Domestic Product (Brookings). Those 20 cities were then ranked according to Nielsen DMA classification, as this is how the Cable/ADS industry classifies them ( National Cable & Telecommunications Association, 2010), and 10 DMAs from the Brookings list that represented a geographic cross-section of the American population were chosen (n=10) based on population. This sample size represented the group exposed to stimulus and was operationalized as “recession-weak.” Those 10 DMAs – and numeric ranking – were: Los Angeles, CA (2); Detroit, MI (11); Phoenix, AZ (12); Tampa-St. Petersburg, FL (14); Miami-Ft. Lauderdale, FL (16); Sacramento-Stockton-Modesto, CA (20); Las Vegas, NV (42); Jacksonville, FL (49); Fresno, CA (55); Ft. Myers-Cape Coral, FL (65). A control group (n=10) that matched in population but had a positive Brookings index – i.e. markets that were deemed, according to their aggregate, to have performed economically well during the recession (2010) – was chosen, and the same methodology was applied. These 10 DMAs were operationalized as “recession-strong,” and were: Dallas-Ft. Worth, TX (5); Washington, DC (9); Houston, TX (10); San Antonio, TX (37); Austin, TX (44); Oklahoma City, OK (45); Buffalo, NY (51); Little Rock, AR (56); Albany, NY (58); and Tulsa, OK (61). Procedure Once the two groups were selected, the mean unemployment rates of both the recession- strong and recession-weak group were calculated (Table 1) utilizing available data from the United States Department of Labor (2006-2009). The same mean was calculated during the period of recession, as well as the preceding period of time, in order to establish a baseline of unemployment prior to the recession. Even though Brookings uses an index of five indicators, 7

Authors: Danelo, Matthew.
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CABLE SUBSCRPITIONS
metropolitan areas – those with more than 500,000 residents as of 2007 – are indexed, which 
resulted in a collective of two-thirds of the nations workforce and three-quarters of its Gross 
Domestic Product (Brookings).
Those 20 cities were then ranked according to Nielsen DMA classification, as this is how 
the Cable/ADS industry classifies them (
National Cable & Telecommunications Association, 
2010), and 10 DMAs from the Brookings list that represented a geographic cross-section of the 
American population were chosen (n=10) based on population. This sample size represented the 
group exposed to stimulus and was operationalized as “recession-weak.” Those 10 DMAs – and 
numeric ranking – were: Los Angeles, CA (2); Detroit, MI (11); Phoenix, AZ (12); Tampa-St. 
Petersburg, FL (14); Miami-Ft. Lauderdale, FL (16); Sacramento-Stockton-Modesto, CA (20); 
Las Vegas, NV (42); Jacksonville, FL (49); Fresno, CA (55); Ft. Myers-Cape Coral, FL (65).
A control group (n=10) that matched in population but had a positive Brookings index – 
i.e. markets that were deemed, according to their aggregate, to have performed economically 
well during the recession (2010) – was chosen, and the same methodology was applied. These 10 
DMAs were operationalized as “recession-strong,” and were: Dallas-Ft. Worth, TX (5); 
Washington, DC (9); Houston, TX (10); San Antonio, TX (37); Austin, TX (44); Oklahoma City, 
OK (45); Buffalo, NY (51); Little Rock, AR (56); Albany, NY (58); and Tulsa, OK (61).
Procedure
Once the two groups were selected, the mean unemployment rates of both the recession-
strong and recession-weak group were calculated (Table 1) utilizing available data from the 
United States Department of Labor (2006-2009). The same mean was calculated during the 
period of recession, as well as the preceding period of time, in order to establish a baseline of 
unemployment prior to the recession. Even though Brookings uses an index of five indicators, 
7


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