Do New Media Substitute for Old Media?: A Panel Analysis of Daily Media Use

Abstract

ABSTRACT In this article, we estimate the user substitutability and complementarity of media by using media diary data on the media use of individuals over the course of three days. Fixed-effects panel data models allow us to eliminate possible bias due to individual-specific media use propensity. We observe significant substitution among paper, television, and computer use, while telephone and computer use seem to be complementary in time of use. The magnitudes of substitutability and complementarity become larger if we control for subscriptions or the possession of media devices. For specific actions and purposes of use, there is substitutability within a smaller set of media. Televisions and computers exhibit substitutability for watching real-time television, cameras act as substitutes for video devices for viewing movies/videos, paper and computers exhibit substitutability for reading news articles, and computers and telephones substitute for one another in using informative content.