Platform Siphoning: Ad-Avoidance and Media Content

Simon Anderson and Joshua Gans

American Economic Journal: Microeconomics, 2011, vol. 3, issue 4, 1-34

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 ad-avoidance. (JEL L82, L86, M37)

JEL-codes: L82 L86 M37 (search for similar items in EconPapers)
Date: 2011
Note: DOI: 10.1257/mic.3.4.1
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Citations: View citations in EconPapers (38)

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Working Paper: Platform Siphoning: Ad-Avoidance and Media Content (2010)
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