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Contracts and competition in the pay-TV market

Subject

Economics

Authors / Editors

Harbord D;Ottaviani M

Publication Year

2001

Abstract

This paper analyses how contractual arrangements for the sale and resale pf premium programming affect competition in pay-TV market. Competition is less effective when resale contracts specify per-subscriber fees rather than lump-sum payments. When premium programming is sold at terms similar to those observed in the UK, consumers can be made worse off than in the absence of premium programming. A number of potential remedies are considered. A ban on exclusive vertical contracts would intensify downstrream competition and transfer benefits of premium programming to consumers.

Publication Research Centre

Regulation Initiative (closed)

Series Number

45

Series

Regulation Initiative Working Paper Series

Available on ECCH

No


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