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TV Wars: Exclusive Content and Platform Competition in Pay TV

Weeds, Helen (2016) 'TV Wars: Exclusive Content and Platform Competition in Pay TV.' Economic Journal, 126 (594). pp. 1600-1633. ISSN 0013-0133

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Abstract

The article examines incentives for exclusive distribution of premium television programming. Static analysis shows that a vertically integrated operator with premium programming always supplies this content to the rival distributor, using per-subscriber fees to soften competition. In a dynamic setting with switching costs exclusivity confers a market share advantage, benefiting the operator in the future. Under certain conditions this future benefit outweighs the opportunity cost of forgone wholesale fees, making exclusivity the preferred choice. Alternative dynamic mechanisms are explored, identifying essential features. The analysis explains the observed incidence of content exclusivity in pay TV and provides guidance for policymakers.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 20 Nov 2014 10:46
Last Modified: 28 Jul 2016 09:18
URI: http://repository.essex.ac.uk/id/eprint/11767

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