Determining the Number of Programming Options in Cable Television

Eun-mee Kim

Journal of Media Economics, 1997, vol. 10, issue 4, 23-37

Abstract: This study provides a systematic analysis of the determinants of the number of programming options in cable television. Theoretically, a system operator would keep adding channels until the marginal revenue potentially earned from an additional channel equals the marginal cost incurred. Local market and system specific characteristics as well as demographic characteristics are tested in an empirical model predicting the number of channels programmed in a cable system. Factors affecting the subscriber base and the price are also discussed. There are 244 random sampled systems analyzed by a 2-stage least squares regression model.

Date: 1997
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DOI: 10.1207/s15327736me1004_2

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