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American Economic Journal Microeconomics
Article . 2011 . Peer-reviewed
Data sources: Crossref
SSRN Electronic Journal
Article . 2011 . Peer-reviewed
Data sources: Crossref
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Platform Siphoning: Ad-Avoidance and Media Content

Authors: Anderson, Simon P; Gans, Joshua;

Platform Siphoning: Ad-Avoidance and Media Content

Abstract

Content providers rely on advertisers to pay for content. TiVo, remote controls, and pop-up ad blockers are examples of ad-avoidance technologies that allow consumers to view content without ads, and thereby siphon off the content without paying the “price.” We examine the content provider's reaction to such technologies, demonstrating that their adoption increases advertising clutter (leading to a potential downward spiral), may reduce total welfare and content quality, and can lead to more mass-market content. We cast doubt on the profitability of using subscriptions to counter the impact of adavoidance.(JEL L82, L86, M37)

Keywords

ad-avoidance; advertising; bypass; death spiral; media economics; siphoning; Two-sided markets, jel: jel:L86, jel: jel:M37, jel: jel:L82

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    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
57
Top 10%
Top 10%
Top 10%
bronze
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