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The Digital Cable TV Pricing Mechanism and the Consumer Preferences: the Survey in Taiwan

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  • Tseng, Kuo-Feng

Abstract

As the cable system accomplishing 100% digitalization in Taiwan, NCC (National Communications Commission) proposes an unbundled pricing mechanism to allow consumers to choose the cable television channels that they actually watch. This study conducted an online survey and 1358 effective questionnaires were completed to know their willing to pay for each channel. The results show that there is a negative slop of demand, lower price for more subscribers, but near three quarters to half of subscribers did not want to pay for the individual channel. The genres of lifestyle, foreign news and movies are the top preferences that consumers pay higher prices. Based on the results of the subscribers' willing to pay, most of the television channels could not survive in the a la carte pricing mechanism.

Suggested Citation

  • Tseng, Kuo-Feng, 2019. "The Digital Cable TV Pricing Mechanism and the Consumer Preferences: the Survey in Taiwan," 30th European Regional ITS Conference, Helsinki 2019 205219, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse19:205219
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    References listed on IDEAS

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    1. Chen, Minghua & Rennhoff, Adam D. & Serfes, Konstantinos, 2016. "Bundling, à la carte pricing and vertical bargaining in a two-sided model," Information Economics and Policy, Elsevier, vol. 35(C), pages 30-44.
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    3. Crawford, Gregory S. & Cullen, Joseph, 2007. "Bundling, product choice, and efficiency: Should cable television networks be offered a la carte?," Information Economics and Policy, Elsevier, vol. 19(3-4), pages 379-404, October.
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