Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Thursday, November 19, 2009

Competition between TV Platforms

Posted by D. Daniel Sokol

Laia Domènech Campmajó (PPRE-IREA, University of Barcelona, Econ) writes on Competition between TV Platforms.

ABSTRACT: The aim of this paper is to identify the factors that affect the market penetration of pay television by studying the competition that exists between three types of technology (satellite, cable and ADSL). We distinguish three groups of factors: the level of market competition, the level of competition in the industry and the quality of the product being offered. Our results seem to indicate that as market concentration increases, the television service can achieve greater penetration. This relationship is specifically captured by the level of intra- and inter-platform competition. We also examine the relationship between free television channels and pay television and find that as the amount of time dedicated to the broadcasting of advertising by the former increases, the number of subscribers to pay TV rises. Finally, we examine product quality by introducing the effect of holding the rights to broadcast Professional Football League matches and an HBO or Showtime produced series. Our results suggest that these variables are critical for the penetration of pay television.

http://lawprofessors.typepad.com/antitrustprof_blog/2009/11/competition-between-tv-platforms.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef0120a66392c9970b

Listed below are links to weblogs that reference Competition between TV Platforms:

Comments

Post a comment