Regulating Television and the Case of Football World Cup

This paper deals with EU-Directive 89/552/EEC "Television Without Frontiers", which enables each EU-country to set up a list of major events that are not allowed to be transmitted in Pay-TV. We analyze this kind of regulation using instruments of game-theory and monopoly-theory. We compare the market results of the EU-Regulation with two alternative arrangements, namely with a general ban of Pay-TV and with a 'laisser-faire'-solution. Our model shows that a selective ban may be welfare-superior to both other forms of Pay-TV treatment. Finally we show that there are good arguments to forbid Pay-TV-broadcasting of major football events.