Commercial Success Through Commercials? Advertising and Pay-TV Operators

The U.S. pay television service market was dominated by cable operators until the nationwide entry of satellite operators in the early 1990s. The latter have been consistently growing their footprints since. This study documents the role of television advertising to explain satellite operators’ success. Using data on U.S. households’ subscription choices and operators’ advertising decisions, the authors document both demand- and supply-side...