Abstract
ABSTRACTThis paper analyses the effect of public service broadcasting on the competition among private broadcasters. A model is constructed to facilitate an evaluation of the effects on investments in the programmes broadcast and the selection of revenue models by private broadcasters: the pay-TV model relying on subscription fees versus the free-TV model relying on advertising revenue. It is shown that increased investment in programmes provided by public broadcasting may deter investments by private broadcasters and may compel broadcasters to change their revenue models from pay-TV to free-TV. Although a public broadcasting station may acquire a considerable number of viewers, it still may not contribute to the total surplus in the industry.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call