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Competition between TV Platforms

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  • Laia Domènech Campmajó

    ()
    (PPRE-IREA, University of Barcelona, Spain)

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    Abstract

    The aim of this paper is to identify the factors that affect the market penetration of pay television by studying the competition that exists between three types of technology (satellite, cable and ADSL). We distinguish three groups of factors: the level of market competition, the level of competition in the industry and the quality of the product being offered. Our results seem to indicate that as market concentration increases, the television service can achieve greater penetration. This relationship is specifically captured by the level of intra- and inter-platform competition. We also examine the relationship between free television channels and pay television and find that as the amount of time dedicated to the broadcasting of advertising by the former increases, the number of subscribers to pay TV rises. Finally, we examine product quality by introducing the effect of holding the rights to broadcast Professional Football League matches and an HBO or Showtime produced series. Our results suggest that these variables are critical for the penetration of pay television.

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    File URL: http://www.pcb.ub.es/xreap/aplicacio/fitxers/XREAP2009-9.pdf
    File Function: First version, 2009
    Download Restriction: no

    File URL: http://www.pcb.ub.es/xreap/aplicacio/fitxers/XREAP2009-9.pdf
    File Function: Revised version, 2009
    Download Restriction: no

    Bibliographic Info

    Paper provided by Xarxa de Referència en Economia Aplicada (XREAP) in its series Working Papers with number XREAP2009-09.

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    Length: 33 pages
    Date of creation: Oct 2009
    Date of revision: Oct 2009
    Handle: RePEc:xrp:wpaper:xreap2009-09

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    Postal: Espai de Recerca en Economia, Facultat de Ciències Econòmiques i Empresarials, Universitat de Barcelona, c/ Tinent Coronel Valenzuela, 1-11, 08034 Barcelona
    Phone: +34+934039653
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    Web page: http://www.pcb.ub.edu/xreap
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    Related research

    Keywords: pay TV; competition between platforms; telecommunications.;

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