Substitution Effects and the Transnational Demand for European Soccer Telecasts

Abstract

European soccer leagues’ internationalization efforts have significantly increased the number of available telecasts abroad. In the US, this has fueled discussions about the degree of audience overlap between networks broadcasting international soccer. However, whether and to what extent telecasts of different leagues indeed constitute substitutes has never been explored empirically. Drawing on US audience data for Bundesliga telecasts, we analyze the impact of scheduling clashes with Premier League, La Liga, and Serie A games. Econometric demand models reveal sizeable substitution effects caused primarily by overlapping Premier League games, suggesting significant competition for the soccer audience in the US market.