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Exclusivity and Bidding for Premium Broadcasting Rights

Author

Listed:
  • Christensen, Eirik N.

    (University of Bergen, Department of Economics)

  • Johansen, Bjørn Olav

    (University of Beren, Department of Economics)

Abstract

Often, we observe that some TV channels are distributed on several platforms, and by several distributors on the same platform, while others are distributed exclusively by one distributor. In this paper, we analyse a TV channelel's incentives for choosing exclusive distribution versus full distribution. We then proceed by studying if bidding for premium content (e.g., broadcasting rights to football) influences the incentives for choosing exclusive distribution. We show that absent of premium content, the channel has incentives to choose exclusive distribution, but the existence of premium con- tent dramatically reduces these incentives, and full distribution is the likely outcome.

Suggested Citation

  • Christensen, Eirik N. & Johansen, Bjørn Olav, 2008. "Exclusivity and Bidding for Premium Broadcasting Rights," Working Papers in Economics 08/08, University of Bergen, Department of Economics.
    • Handle: RePEc:hhs:bergec:2008_008
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    More about this item

    Keywords

    Exclusive dealing; auctions; football; media.;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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