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

Peitz, M., Valletti, T.m. (2008). Content and advertising in the media: pay-tv versus free-to-air. INTERNATIONAL JOURNAL OF INDUSTRIAL ORGANIZATION, 26(4), 949-965 [10.1016/j.ijindorg.2007.08.003].

Content and advertising in the media: pay-tv versus free-to-air

VALLETTI, TOMMASO MARIA
2008-01-01

Abstract

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
Pubblicato
Rilevanza internazionale
Articolo
Sì, ma tipo non specificato
Settore SECS-P/01 - Economia Politica
English
Con Impact Factor ISI
advertising; media; product differentiation; two-sided markets
Peitz, M., Valletti, T.m. (2008). Content and advertising in the media: pay-tv versus free-to-air. INTERNATIONAL JOURNAL OF INDUSTRIAL ORGANIZATION, 26(4), 949-965 [10.1016/j.ijindorg.2007.08.003].
Peitz, M; Valletti, Tm
Articolo su rivista
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/41354
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