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Platform Competition in Pay-TV Market

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Author Info

  • Kasuga, Norihro
  • Manabu, Shishikura
  • Masanori, Kondo

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.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 5694.

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Date of creation: 10 Nov 2007
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Handle: RePEc:pra:mprapa:5694

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Related research

Keywords: Platform Competition; Cable Television; Communication Satellite; Pay-TV; subscriber penetration; high-value added service;

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  1. Schmidt, Stephen, 2001. "Market structure and market outcomes in deregulated rail freight markets," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 99-131, January.
  2. Hazlett, Thomas W, 1997. "Prices and Outputs under Cable TV Reregulation," Journal of Regulatory Economics, Springer, vol. 12(2), pages 173-95, September.
  3. Clements, Michael E. & Brown, Stephen M., 2006. "The satellite home viewer improvement act: Price and quality impact of direct broadcast satellite companies' provision of local broadcast stations," Telecommunications Policy, Elsevier, vol. 30(2), pages 125-135, March.
  4. Thomas Hazlett, 1996. "Cable Television Rate Deregulation," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 3(2), pages 145-164.
  5. Chipty, Tasneem, 1995. "Horizontal Integration for Bargaining Power: Evidence from the Cable Television Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(2), pages 375-97, Summer.
  6. Manabu Shishikura & Norihiro Kasuga & Akio Torii, 2005. "Analysis of Subscription Demand for Pay-TV," Industrial Organization 0509005, EconWPA.
  7. Prager, Robin A, 1992. "The Effects of Deregulating Cable Television: Evidence from the Financial Markets," Journal of Regulatory Economics, Springer, vol. 4(4), pages 347-63, December.
  8. Carroll, Kathleen A & Lamdin, Douglas J, 1993. "Measuring Market Response to Regulation of the Cable TV Industry," Journal of Regulatory Economics, Springer, vol. 5(4), pages 385-99, December.
  9. Agyei Karikari, John & Brown, Stephen M. & Abramowitz, Amy D., 2003. "Subscriptions for direct broadcast satellite and cable television in the US: an empirical analysis," Information Economics and Policy, Elsevier, vol. 15(1), pages 1-15, March.
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