Abstract:
In this article a Vector Autoregressive Model is applied to the Portuguese cable television operators, in order to obtain a dynamic analysis of the interactivity established between the supply and the demand of network services. The results reveal the existence of two driving forces, on the one hand, the supply push, which contributes to the enhancement of the basic cable demand, and on the other hand, the demand pull that intensifies the introduction of new services. In the two case studies, it is detected that vertical integration of services has a negative impact on the price of the basic cable.