Strategic Differentiation by Business Models: Free-To-Air and Pay-TV-Reference-Cited by-同舟云学术

Strategic Differentiation by Business Models: Free-To-Air and Pay-TV

Published:2019-07-19 Issue:625 Volume:130 Page:50-64
ISSN:0013-0133
Container-title:The Economic Journal
language:en
Short-container-title:

Author:

Calvano Emilio¹,Polo Michele²

Affiliation:

1. Dipartimento di Scienze Economiche, Università di Bologna (primary), Toulouse School of Economics, Center for Studies in Economics and Finance, CEPR

2. Dipartimento di Economia, Università Bocconi (primary), IGIER and GREEN

Abstract

Abstract Broadcasting markets are marked by the coexistence of outlets with radically different business models, some offering content free of charge and relying on advertising, others charging for access and airing few ads. We develop a model with competing broadcasters that leads to endogenous differentiation in business models. Differentiation is not driven by the heterogeneity of agents as in classic works. Rather it relates to the ‘two-sided’ nature of these markets. A key driver is a strong form of strategic substitutability induced by natural properties of technology that allows advertisers to reach viewers.

Publisher

Oxford University Press (OUP)

Subject

Economics and Econometrics

Link

http://academic.oup.com/ej/advance-article-pdf/doi/10.1093/ej/uez037/29007029/uez037.pdf

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