Thursday, November 4, 2010
Posted by D. Daniel Sokol
Juan José Ganuza, Universitat Pompeu Fabra, Department of Economics and explain María Fernanda Viecens, FEDEA explain Exclusive Content and the Next Generation Networks.
ABSTRACT: This paper analyzes the interaction between the market of premium contents and the next generation network industry. We assume structural separation between the network and service operators (platforms) and the comparative advantage of the service operators depends on the access to premium contents. On one side, we analyze the impact of the exclusivity of premium contents over the incentives to deploy NGNs, the performance of the operators market, and welfare. On the other side, we analyze what are the incentives of the providers of premium contents to offer exclusivity contracts (to singlehome) in NGNs settings in which they can also sell directly to consumers. In this context, we show that exclusivity only occurs when the content is not highly valued by consumers.