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Platform Competition in Pay-TV Market

Author

Listed:
  • Kasuga, Norihro
  • Manabu, Shishikura
  • Masanori, Kondo

Abstract

In this paper, we undertake an empirical analysis of the current Japanese pay-TV market, where cable TV carriers and CS digital satellite carriers are the main players. After examining the factors for subscribing to pay-TV and the competitive situation in the market, we have the following findings; (1) Cable TV carriers promote high value-added service provision, such as bundling internet access, and these activities result in competitive superiority over CS carriers. (2) Cable TV carriers receiving bigger investment from local governments tend to gain higher rates of subscription, although they provide smaller numbers of channels with a low charge. (3) The number of terrestrial broadcasting channels which are transmitted via pay-TV carriers can have a large impact on competitive advantage when getting subscribers in the pay-TV market.

Suggested Citation

  • Kasuga, Norihro & Manabu, Shishikura & Masanori, Kondo, 2007. "Platform Competition in Pay-TV Market," MPRA Paper 5694, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:5694
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    References listed on IDEAS

    as
    1. Manabu Shishikura & Norihiro Kasuga & Akio Torii, 2005. "Analysis of Subscription Demand for Pay-TV," Industrial Organization 0509005, University Library of Munich, Germany.
    2. Agyei Karikari, John & Brown, Stephen M. & Abramowitz, Amy D., 2003. "Subscriptions for direct broadcast satellite and cable television in the US: an empirical analysis," Information Economics and Policy, Elsevier, vol. 15(1), pages 1-15, March.
    3. Adam B. Jaffe & David M. Kanter, 1990. "Market Power of Local Cable Television Franchises: Evidence from the Effects of Deregulation," RAND Journal of Economics, The RAND Corporation, vol. 21(2), pages 226-234, Summer.
    4. Clements, Michael E. & Brown, Stephen M., 2006. "The satellite home viewer improvement act: Price and quality impact of direct broadcast satellite companies' provision of local broadcast stations," Telecommunications Policy, Elsevier, vol. 30(2), pages 125-135, March.
    5. Tasneem Chipty, 1995. "Horizontal integration for bargaining Power: Evidence from the Cable Television Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(2), pages 375-397, June.
    6. Schmidt, Stephen, 2001. "Market structure and market outcomes in deregulated rail freight markets," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 99-131, January.
    7. Prager, Robin A, 1992. "The Effects of Deregulating Cable Television: Evidence from the Financial Markets," Journal of Regulatory Economics, Springer, vol. 4(4), pages 347-363, December.
    8. Chipty, Tasneem, 1995. "Horizontal Integration for Bargaining Power: Evidence from the Cable Television Industry," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 4(2), pages 375-397, Summer.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Platform Competition; Cable Television; Communication Satellite; Pay-TV; subscriber penetration; high-value added service;
    All these keywords.

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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