Can Advertising Make Free-to-Air Broadcasting More Profitable Than Pay-TV?

Stefan Kesenne

International Journal of Sport Finance, 2012, vol. 7, issue 4, 358-364

Abstract: In this paper, we derive, based on a simple microeconomic model, under what conditions free-TV can more profitable than pay-TV in sports broadcasting. The most important factors here are the level, not the elasticity, of the demand for televised sports, as well as the advertisers’ willingness to pay. Also the spectators’ aversion to interruptions for advertising can play a role.

Keywords: sports media; broadcasting; advertising; profitability; pay-TV; free-TV (search for similar items in EconPapers)
JEL-codes: L83 (search for similar items in EconPapers)
Date: 2012
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International Journal of Sport Finance is currently edited by Arne Feddersen, Babatunde Buraimo, Joachim Prinz and Jane Ruseski

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