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Exclusive Quality - Why Exclusive Distribution may Benefit the TV-viewers

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Author Info

  • Stennek, Johan

    ()
    (Research Institute of Industrial Economics)

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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 Research Institute of Industrial Economics in its series Working Paper Series with number 691.

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    Length: 44 pages
    Date of creation: 09 Jan 2007
    Date of revision:
    Handle: RePEc:hhs:iuiwop:0691

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    Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
    Phone: +46 8 665 4500
    Fax: +46 8 665 4599
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    Web page: http://www.ifn.se/
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    Related research

    Keywords: Exclusive Contracts; Quality; Bargaining; Avertising; Investment;

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    Cited by:
    1. Paul Madden & Mario Pezzino, 2013. "Sports League Quality, Broadcaster TV Rights Bids and Wholesale Regulation of Sports Channels," The School of Economics Discussion Paper Series 1304, Economics, The University of Manchester.

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