In this study we analyze daily data on television viewing in the Netherlands. We postulate hypotheses on supply and demand factors that could impact the amount of daily viewing time. Although the general assumption is that supply and demand often correlate, we see that for television this is only marginally the case. Especially diversity of program supply, often deemed very important in media markets, does not affect (positively or negatively) television viewing behavior. Most variation in television viewing can be attributed to habit and to regular events (e. g. weekends, Christmas) and to unexpected events (e. g. the 9/11 WTC attack). We also find that weather conditions interact with program types, so that, for example, in winter times people favor entertainment programs even more, suggesting that people use television for mood management.

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ERIM Article Series (EAS) , Econometric Institute Reprint Series
Erasmus Research Institute of Management

Vergeer, M., Eisinga, R., & Franses, P. H. (2012). Supply and demand effects in television viewing. A time series analysis. Communications, 37(1), 79–98. doi:10.1515/commun-2012-0004