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

B-Tier
Journal: International Journal of Industrial Organization
Year: 2008
Volume: 26
Issue: 4
Pages: 949-965

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:indorg:v:26:y:2008:i:4:p:949-965
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-28