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The Effects of Vertical Integration Between Pay Cable Networks and Cable Television Systems

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  • Waterman, David
  • Weiss, Andrew A.

Abstract

We and that integration between pay networks and cable systems has substantial effects on final market outcomes. Cable systems owned by the two MSOs (Multiple Cable Television System Operators) having majority ownership ties with major pay cable networks tended to carry their affiliated networks more frequently and rival networks less frequently than did the average non-integrated system. Systems of at least one of these MSOs offered fewer pay networks in total than the average non-integrated system. With respect to pricing and other marketing behavior, results suggest that systems in these MSOs favor affiliated networks, but there was less evidence that they discriminate against rival networks.

Suggested Citation

  • Waterman, David & Weiss, Andrew A., "undated". "The Effects of Vertical Integration Between Pay Cable Networks and Cable Television Systems," Department of Econometrics and Business Statistics Working Papers 267398, Monash University, Department of Econometrics and Business Statistics.
    • Handle: RePEc:ags:monebs:267398
    DOI: 10.22004/ag.econ.267398
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