scholarly journals Market Provision of Program Quality in the Television Broadcasting Industry

Author(s):  
Panlang Lin

Abstract This paper uses a simple model of duopoly competition to study the market provision of program quality offered by television broadcasters under three different regimes. In regime 1, two broadcasters are financed only with subscription fees (i.e., fee-based or pay TV). In regime 2, the two broadcasters generate their revenues only from advertising (i.e., free TV). In regime 3, one pay TV broadcaster competes with one free TV broadcaster. We show that the broadcasters in regime 3 (but not in regimes 1 and 2) vertically differentiate their channel programs if, for a given level of advertising market profitability, viewers strongly or weakly dislike the presence of advertising. In such cases, although the two pay TV broadcasters in regime 1 will unambiguously offer higher or lower quality programming than the two free TV broadcasters under regime 2, it is not clear which broadcaster will provide higher or lower program quality in regime 3 because this depends on the degree of horizontal differentiation between the channel programs. However, the levels of quality offered under regimes 1 and 2 fall between the quality levels offered by the two broadcasters in regime 3.

MedienJournal ◽  
2017 ◽  
Vol 39 (3) ◽  
pp. 44 ◽  
Author(s):  
Paul Murschetz

This study offers an economic analysis of the television broadcasting industry at the convergence of broadcast and broadband connectivity. It applies the „Structure-Conduct- Performance“(SCP)-paradigm of Industrial Organization theory as framework and investigates how the model can contribute to explaining emergent issues in the economics of Smart TV. It is argued here that SCP model provides a useful heuristic and can fruitfully be applied to various questions surrounding the fundamental transformation of the television broadcasting sector towards Smart TV, notably issues of market structure and competitive behavior. The argument is illustrated by the emerging ecosystem for Smart TV services in Germany. There, the market is still immature and each provider is struggling with the challenge of developing an optimal strategy and organizational form in the Smart TV ecosystem.  


1992 ◽  
Vol 17 (4) ◽  
pp. 213-217 ◽  
Author(s):  
Joanne Eichinger ◽  
June Downing

This study investigated the perceptions of 48 teachers and 41 program administrators relative to the importance of 123 items representing program quality for learners with severe disabilities. The purpose of this study was to extend the original validation study (Meyer, Eichinger, & Park-Lee, 1987) of the 123 program quality indicators to include these two groups of service providers considered critical to quality programming. Both groups consistently rated the majority of the 123 items high (between the important and very important anchors). There was only one item that was rated significantly different by the two groups. The unit mean scores for these two groups were compared with those of the six groups in the earlier study (Meyer et al., 1987). The two dimensions considered most important by all eight groups were the criterion of ultimate functioning and professional practices/home-school collaboration. While this study served to further validate these indicators, anecdotal data and ongoing changes in the field served as catalysts for a revision of the Program Quality Indicators checklist (Meyer, Eichinger, & Downing, 1992).


2011 ◽  
Vol 43 (12) ◽  
pp. 2918-2933 ◽  
Author(s):  
Gary A S Cook ◽  
Naresh R Pandit ◽  
Jonathan V Beaverstock

This paper considers the processes supporting agglomeration in the British television broadcasting industry. It compares and contrasts the insights offered by the cultural turn in geography and more conventionally economic approaches. It finds that culture and institutions are fundamental to the constitution of production and exchange relationships and also that they solve fundamental economic problems of coordinating resources under conditions of uncertainty and limited information. Processes at a range of spatial scales are important, from highly local to global, and conventional economics casts some light on which firms are most active and successful.


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