Competition between TV Platforms

Laia Domènech Campmajó ()
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Laia Domènech Campmajó: PPRE-IREA, University of Barcelona, Spain

No XREAP2009-09, Working Papers from Xarxa de Referència en Economia Aplicada (XREAP)

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.

Keywords: pay TV; competition between platforms; telecommunications. (search for similar items in EconPapers)
JEL-codes: L82 L96 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2009-10, Revised 2009-10
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http://www.xreap.cat/RePEc/xrp/pdf/XREAP2009-9.pdf First version, 2009 (application/pdf)
http://www.xreap.cat/RePEc/xrp/pdf/XREAP2009-9.pdf Revised version, 2009 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:xrp:wpaper:xreap2009-09

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