The Effects of Introducing Advertising in Pay TV: A Model of Asymmetric Competition between Pay TV and Free TV
نویسندگان
چکیده
Abstract The television broadcasting industry is of crucial economic and social importance. Traditionally, this has been dominated by free-to-air TV (FTV) but due to technological progress, subscription-based pay (PTV) emerged as a competing business model. A key question for the PTV broadcasters whether air commercials in addition charging subscription fees. Based on theoretical model asymmetric competition between an FTV broadcaster, we examine effects placing advertising broadcaster market strategies, viewer demands, profits consumer surplus. We find that introducing can induce higher demand channel lower channel. Surprisingly, consumers benefit through introduction increase if disutility sufficiently large. Our study provides analytical framework choosing implementing optimal strategy when competitor preexists market. Furthermore, our derives implications policymakers regulatory authorities showing additional not necessarily socially undesirable strategic reactions.
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ژورنال
عنوان ژورنال: B E Journal of Theoretical Economics
سال: 2022
ISSN: ['2194-6124', '1935-1704']
DOI: https://doi.org/10.1515/bejte-2021-0068