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The regulation of public service broadcasters: should there be more advertising on television?

Author

Listed:
  • Gregory S. Crawford
  • Lachlan Deer
  • Jeremy Smith
  • Paul Sturgeon

Abstract

Increased competition for viewers’ time is threatening the viability of public-service broadcasters (PSBs) around the world. Changing regulations regarding advertising minutes might increase revenues, but little is known about the structure of advertising demand. To address this problem, we collect a unique dataset on monthly impacts (quantities) and prices of UK television channels between 2002 and 2009 to estimate the (inverse) demand for advertising on both public and commercial broadcasters. We find that increasing PSB advertising minutes to the level permitted for non-PSBs would increase PSB and industry revenue by 10.5% and 6.7%.

Suggested Citation

  • Gregory S. Crawford & Lachlan Deer & Jeremy Smith & Paul Sturgeon, 2017. "The regulation of public service broadcasters: should there be more advertising on television?," ECON - Working Papers 268, Department of Economics - University of Zurich.
    • Handle: RePEc:zur:econwp:268
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Advertising; public service broadcasting; television markets; inverse demand;

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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