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Exclusivity and Bidding for Premium Broadcasting Rights

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Author Info

  • Christensen, Eirik N.

    (University of Bergen, Department of Economics)

  • Johansen, Bjørn Olav

    ()
    (University of Beren, Department of Economics)

Abstract

Often, we observe that some TV channels are distributed on several platforms, and by several distributors on the same platform, while others are distributed exclusively by one distributor. In this paper, we analyse a TV channelel's incentives for choosing exclusive distribution versus full distribution. We then proceed by studying if bidding for premium content (e.g., broadcasting rights to football) influences the incentives for choosing exclusive distribution. We show that absent of premium content, the channel has incentives to choose exclusive distribution, but the existence of premium con- tent dramatically reduces these incentives, and full distribution is the likely outcome.

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Bibliographic Info

Paper provided by University of Bergen, Department of Economics in its series Working Papers in Economics with number 08/08.

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Length: 35 pages
Date of creation: 04 Aug 2008
Date of revision:
Handle: RePEc:hhs:bergec:2008_008

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Postal: Institutt for økonomi, Universitetet i Bergen, Postboks 7802, 5020 Bergen, Norway
Phone: (+47)55589200
Fax: (+47)55589210
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Web page: http://www.uib.no/econ/en
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Keywords: Exclusive dealing; auctions; football; media.;

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