Content and advertising in the media: Pay-tv versus free-to-air
We compare the advertising intensity and content of programming in a market with competing media platforms. With pay-tv, media platforms have two sources of revenues, advertising revenues and revenues from viewers. With free-to-air, media platforms receive all revenues from advertising. We show that if viewers strongly dislike advertising, the advertising intensity is greater under free-to-air television. We also show that free-to-air television tends to provide less differentiated content whereas pay-tv stations always maximally differentiate their content. In addition, we compare the welfare properties of the two different schemes.
Year of publication: |
2008
|
---|---|
Authors: | Peitz, Martin ; Valletti, Tommaso M. |
Published in: |
International Journal of Industrial Organization. - Elsevier, ISSN 0167-7187. - Vol. 26.2008, 4, p. 949-965
|
Publisher: |
Elsevier |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Content and advertising in the media: pay-tv versus free-to-air
Peitz, Martin, (2005)
-
Net neutrality : a fast lane to understanding the trade-offs
Greenstein, Shane M., (2016)
-
Net neutrality: a fast lane to understanding the trade-offs
Greenstein, Shane M., (2016)
- More ...