Banning Ads from Prime-Time State TV: Lessons from France
AbstractWe analyse the effects of the advertising ban on French public television, which came into effect on the 5th of January 2009. The ban forbids commercial advertising on public TV in the time slot 20.00-6.00. By using a difference-in-difference approach we show that advertising which was previously broadcasted on public TV in the time slot 20.00-6.00 did not switch to private channels in the same time slot (nor did the price per second in that time slot on private channels rise). Rather advertising partly switched to public TV in the time slot 6.00-20.00. The trend away from aerial towards non-aerial TV channels continued but was not increased. The common expectation that the ban would favour private TV channels at the expense of public ones was therefore wrong. Interestingly, the relative audience of public to private TV did not tilt in favour of public TV. This suggests that advertising aversion is not the driving parameter at work. More likely, for advertisers, viewers of public TV in the slot 6.00-20.00 are closer substitutes for viewers of public TV in the slot 20.00-6.00 than are viewers of private TV channels in the slot 20.00-6.00.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by NET Institute in its series Working Papers with number 12-23.
Length: 35 pages
Date of creation: Oct 2012
Date of revision:
Contact details of provider:
Web page: http://www.NETinst.org/
Keywords: two-sided markets; media; advertising regulation; television; public service broadcasting;
Find related papers by JEL classification:
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
- D18 - Microeconomics - - Household Behavior - - - Consumer Protection
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wright, Donald J., 1992.
"Television Advertising Regulation And Programme Quality,"
178, University of Sydney, School of Economics.
- Wright, Donald J, 1994. "Television Advertising Regulation and Program Quality," The Economic Record, The Economic Society of Australia, vol. 70(211), pages 361-67, December.
- Stühmeier, Torben & Wenzel, Tobias, 2012.
"Regulating advertising in the presence of public service broadcasting,"
DICE Discussion Papers
41, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
- Stühmeier Torben & Wenzel Tobias, 2012. "Regulating Advertising in the Presence of Public Service Broadcasting," Review of Network Economics, De Gruyter, vol. 11(2), pages 1-23, June.
- Peitz, Martin & Valletti, Tommaso M., 2008.
"Content and advertising in the media: Pay-tv versus free-to-air,"
International Journal of Industrial Organization,
Elsevier, vol. 26(4), pages 949-965, July.
- Peitz, Martin & Valletti, Tommaso, 2004. "Content and Advertising in the Media: Pay-TV versus Free-To-Air," CEPR Discussion Papers 4771, C.E.P.R. Discussion Papers.
- Choi, Jay Pil, 2006. "Broadcast competition and advertising with free entry: Subscription vs. free-to-air," Information Economics and Policy, Elsevier, vol. 18(2), pages 181-196, June.
- Rochet, Jean-Charles & Tirole, Jean, 2003.
"Platform Competition in Two-Sided Markets,"
IDEI Working Papers
152, Institut d'Économie Industrielle (IDEI), Toulouse.
- Marc Bourreau & Christian Grece, 2011. "L'impact de la suppression de la publicité sur les chaînes de télévision publiques," Revue économique, Presses de Sciences-Po, vol. 62(5), pages 781-811.
- Kremhelmer, Susanne & Zenger, Hans, 2008. "Advertising and the screening role of mass media," Information Economics and Policy, Elsevier, vol. 20(2), pages 107-119, June.
- Mark Armstrong, 2005.
"Competition in Two-Sided Markets,"
- Spence, A Michael & Owen, Bruce, 1977. "Television Programming, Monopolistic Competition, and Welfare," The Quarterly Journal of Economics, MIT Press, vol. 91(1), pages 103-26, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nicholas Economides).
If references are entirely missing, you can add them using this form.