Sports, the Television Hero: The Empirical Influence of Professional Sports on Cable Television in a Period of Decline
Date
2013
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Haverford College. Department of Economics
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eng
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Haverford users only
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Abstract
Since 2010, the television industry has seen decreases in cable and satellite subscriptions in more quarters than they have witnessed gains. Overall, they have experienced a net loss in subscriptions in that span, with the quantities of loss growing each year. While this has been happening, those within cable and satellite distributers and networks have maintained that the necessity for sports, the most valuable asset to television, to be watched live will keep television relevant and alive. In running fixed effects regressions testing the impact of professional sports on local television markets over time, we find that people in markets with professional sports subscribe to cable or satellite service with greater percentages than those without sports. This effect holds strongest over the years of 2010 to 2012, providing evidential support for the theory that professional sports will be ever more important to pay-television in the years to come.