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Platform Competition in Pay-TV Market

Norihiro Kasuga (), Shishikura Manabu and Kondo Masanori

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, we undertake an empirical analysis of the current Japanese pay-TV market, where cable TV carriers and CS digital satellite carriers are the main players. After examining the factors for subscribing to pay-TV and the competitive situation in the market, we have the following findings; (1) Cable TV carriers promote high value-added service provision, such as bundling internet access, and these activities result in competitive superiority over CS carriers. (2) Cable TV carriers receiving bigger investment from local governments tend to gain higher rates of subscription, although they provide smaller numbers of channels with a low charge. (3) The number of terrestrial broadcasting channels which are transmitted via pay-TV carriers can have a large impact on competitive advantage when getting subscribers in the pay-TV market.

Keywords: Platform Competition; Cable Television; Communication Satellite; Pay-TV; subscriber penetration; high-value added service (search for similar items in EconPapers)
JEL-codes: L51 L82 R22 (search for similar items in EconPapers)
Date: 2007-11-10
New Economics Papers: this item is included in nep-com, nep-cul, nep-mic and nep-net
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