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Competition between TV Platforms

Author

Listed:
  • Laia Domènech Campmajó

    (PPRE-IREA, University of Barcelona, Spain)

Abstract

The aim of this paper is to identify the factors that affect the market penetration of pay television by studying the competition that exists between three types of technology (satellite, cable and ADSL). We distinguish three groups of factors: the level of market competition, the level of competition in the industry and the quality of the product being offered. Our results seem to indicate that as market concentration increases, the television service can achieve greater penetration. This relationship is specifically captured by the level of intra- and inter-platform competition. We also examine the relationship between free television channels and pay television and find that as the amount of time dedicated to the broadcasting of advertising by the former increases, the number of subscribers to pay TV rises. Finally, we examine product quality by introducing the effect of holding the rights to broadcast Professional Football League matches and an HBO or Showtime produced series. Our results suggest that these variables are critical for the penetration of pay television.

Suggested Citation

  • Laia Domènech Campmajó, 2009. "Competition between TV Platforms," Working Papers XREAP2009-09, Xarxa de Referència en Economia Aplicada (XREAP), revised Oct 2009.
    • Handle: RePEc:xrp:wpaper:xreap2009-09
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    File URL: http://www.xreap.cat/RePEc/xrp/pdf/XREAP2009-9.pdf
    File Function: First version, 2009
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    File URL: http://www.xreap.cat/RePEc/xrp/pdf/XREAP2009-9.pdf
    File Function: Revised version, 2009
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    More about this item

    Keywords

    pay TV; competition between platforms; telecommunications.;
    All these keywords.

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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