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Pay-per-view Television: Consequences of a Ban

Author

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  • Claus Thustrup Hansen
  • Søren Kyhl

Abstract

In the future, a ban of pay-per-view broadcasting will arise on certain events included on national lists in each EU country as put forward in the new ''Television Without Frontiers'' Directive from the 16th of April 1997. This paper analyses theoretically the consequences of such ban when the alternative is financing the events purely by TV-commercials. Results on economic efficiency does not provide much reason for a ban. However, a ban increases consumer surplus which may support a ban for distributional reasons.

Suggested Citation

  • Claus Thustrup Hansen & Søren Kyhl, "undated". "Pay-per-view Television: Consequences of a Ban," EPRU Working Paper Series 97-12, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
  • Handle: RePEc:kud:epruwp:97-12
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    File URL: http://www.econ.ku.dk/epru/files/wp/wp9712.pdf
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    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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