Can Advertising Make Free-to-Air Broadcasting More Profitable Than Pay-TV?
In this paper, we derive, based on a simple microeconomic model, under what conditions free-TV can more profitable than pay-TV in sports broadcasting. The most important factors here are the level, not the elasticity, of the demand for televised sports, as well as the advertisers’ willingness to pay. Also the spectators’ aversion to interruptions for advertising can play a role.
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Volume (Year): 7 (2012)
Issue (Month): 4 (November)
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