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HDTV in Germany: Lack of Innovation Management Leads to Market Failure

Author

Listed:
  • Georg Erber
  • Sven Heitzler

Abstract

High definition television may now be poised for a breakthrough in Germany. Unfortunately, in the area of private free-TV, broadcasters and network operators are still blocking each other. Market participants hope to leverage encryption and digital rights management as sources of long-term profits. This, however, may come at the expense of television viewers. Despite the start of regular HDTV operations by public broadcasters, only a few consumers are currently in a position to actually receive high definition television. The government should facilitate a rapid resolution to the current standoff and ensure effective monitoring of competition by implementing new standards.

Suggested Citation

  • Georg Erber & Sven Heitzler, 2010. "HDTV in Germany: Lack of Innovation Management Leads to Market Failure," Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 6(28), pages 215-222.
  • Handle: RePEc:diw:diwwrp:wr6-28
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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.360950.de/diw_wr_2010-28.pdf
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    More about this item

    Keywords

    HDTV; Innovation Management; Tragedy of the Anti-Commons;

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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