All Academic, Inc. Research Logo

Info/CitationFAQResearchAll Academic Inc.

The Rise and Rise of Cable TV: Demand elasticity of cable television during the Great Recession
Unformatted Document Text:  CABLE SUBSCRPITIONS Results Utilizing the above methodology yielded the following answers to the research questions. RQ1 asked if, in media markets hit hardest by the recent economic recession, a correlation existed between Cable/ADS penetration rates and the unemployment rates. H1 posited that, in accordance with the PIH, Cable/ADS penetration rates would positively correlate with the unemployment rate. Analysis of the data using the above methodology showed a positive correlation (Figures 1 & 2). As the unemployment rates rose in both recession-weak and recession-strong DMAs, the percentage of Cable/ADS subscriptions positively correlated, thus supporting this hypothesis. RQ2 asked if demand for Cable/ADS services remained inelastic throughout the recession. H2 posited that demand for Cable/ADS services with respect to unemployment would be inelastic. From February 2006 to November 2007, the mean Cable/ADS penetration in recession-weak DMAs increased 2.64% ( ∆ Q = .0264). During that same time period, the change in the mean unemployment rate was 92.15% ( ∆ P = .9215). When applying the formula for elasticity, η = .03. Therefore Cable/ADS penetration with respect to unemployment in the two years prior to the recession was inelastic ( η <1). From February 2008 to November 2009, the mean Cable/ADS penetration in recession-strong DMA’s increased 2.01% ( ∆ Q = .0201). During that same time period, the change in the mean unemployment rate was 33.18% ( ∆ P = .3318). When applying the formula for elasticity, η = .06. Therefore Cable/ADS penetration with respect to unemployment in the two years prior to the recession was inelastic ( η <1). Since demand remained inelastic throughout both non-recession and recession months, H2 was supported. 9

Authors: Danelo, Matthew.
first   previous   Page 9 of 16   next   last

background image
Utilizing the above methodology yielded the following answers to the research questions. 
RQ1 asked if, in media markets hit hardest by the recent economic recession, a correlation 
existed between Cable/ADS penetration rates and the unemployment rates. H1 posited that, in 
accordance with the PIH, Cable/ADS penetration rates would positively correlate with the 
unemployment rate. Analysis of the data using the above methodology showed a positive 
correlation (Figures 1 & 2). As the unemployment rates rose in both recession-weak and 
recession-strong DMAs, the percentage of Cable/ADS subscriptions positively correlated, thus 
supporting this hypothesis. 
RQ2 asked if demand for Cable/ADS services remained inelastic throughout the 
recession. H2 posited that demand for Cable/ADS services with respect to unemployment would 
be inelastic. From February 2006 to November 2007, the mean Cable/ADS penetration in 
recession-weak DMAs increased 2.64% (
Q = .0264). During that same time period, the change 
in the mean unemployment rate was 92.15% (
P = .9215). When applying the formula for 
 = .03. Therefore Cable/ADS penetration with respect to unemployment in the two 
years prior to the recession was inelastic (
<1). From February 2008 to November 2009, the 
mean Cable/ADS penetration in recession-strong DMA’s increased 2.01% (
Q = .0201). During 
that same time period, the change in the mean unemployment rate was 33.18% (
P = .3318). 
When applying the formula for elasticity, 
 = .06. Therefore Cable/ADS penetration with respect 
to unemployment in the two years prior to the recession was inelastic (
<1). Since demand 
remained inelastic throughout both non-recession and recession months, H2 was supported.

All Academic Convention makes running your annual conference simple and cost effective. It is your online solution for abstract management, peer review, and scheduling for your annual meeting or convention.
Submission - Custom fields, multiple submission types, tracks, audio visual, multiple upload formats, automatic conversion to pdf.
Review - Peer Review, Bulk reviewer assignment, bulk emails, ranking, z-score statistics, and multiple worksheets!
Reports - Many standard and custom reports generated while you wait. Print programs with participant indexes, event grids, and more!
Scheduling - Flexible and convenient grid scheduling within rooms and buildings. Conflict checking and advanced filtering.
Communication - Bulk email tools to help your administrators send reminders and responses. Use form letters, a message center, and much more!
Management - Search tools, duplicate people management, editing tools, submission transfers, many tools to manage a variety of conference management headaches!
Click here for more information.

first   previous   Page 9 of 16   next   last

©2012 All Academic, Inc.