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Exclusive Quality - Why Exclusive Distribution May Benefit the TV Viewers

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  • Stennek, Johan
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    Abstract

    Sports organizations, Hollywood studios and TV channels grant satellite and cable networks exclusive rights to televise their matches, movies and media contents. Exclusive distribution prevents viewers from watching attractive programs, and reduces the TV-distributors incentives to compete in prices. This paper demonstrates that exclusive distribution may also give providers of contents incentives to invest in higher quality and, as a result, force competitors to reduce their prices. Exclusive distribution may benefit all viewers, including those who are excluded.

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    Bibliographic Info

    Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6072.

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    Date of creation: Jan 2007
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    Handle: RePEc:cpr:ceprdp:6072

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    Related research

    Keywords: advertising; bargaining; exclusive contracts; investment; quality; two-sided market;

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