The Economic Regulation of Broadcasting Markets: Evolving Technology and Challenges for Policy

Cover......Page 1
Half-title......Page 3
Title......Page 5
Copyright......Page 6
Contents......Page 7
Figures......Page 9
Tables......Page 10
Boxes......Page 11
Notes on contributors......Page 12
PART I Introduction......Page 15
1 Introduction: the future of economic regulation in broadcasting markets......Page 17
Note......Page 24
2.1 Introduction......Page 25
2.2 Broadcasting regulation......Page 26
2.3 Results of regulation: investment and access......Page 43
Lessons for students: what have we learned?......Page 49
References......Page 50
Appendix 2.1: Editing the product market regulation (PMR) database......Page 52
Notes......Page 58
PART II Questions of principle in broadcasting regulation......Page 59
3.2 The changing nature of broadcasting......Page 61
3.3 Content, superstars and the impact of digitisation......Page 65
Content rights replace transmission bottlenecks as sources of market power......Page 74
Viewer markets replace advertiser markets......Page 76
Exclusivity over premium content may be anticompetitive......Page 77
Bundling is essential to broadcasting......Page 78
Lessons for researchers: what do we still need to know?......Page 83
Salop model with endogenous quality......Page 84
Equilibrium......Page 85
Comparative statics......Page 86
Viewer welfare......Page 87
The impact of digitisation......Page 88
References......Page 89
Notes......Page 90
4.1 Introduction......Page 95
4.2 The broadcasting industry......Page 97
Transmission......Page 98
Revenue generation......Page 99
4.3 Will the market give people what they want to watch?......Page 100
Efficient viewing of programmes......Page 101
Efficient level of advertising......Page 102
Television licence fee......Page 103
Advertising funding......Page 105
Pay-TV......Page 106
Programme production and asymmetric information......Page 109
Advertising funding......Page 110
What is meant by programme quality?......Page 113
Quality provision......Page 114
4.4 Should people be allowed to watch only what they want?......Page 115
Do viewers make the ‘right’ decisions for themselves?......Page 116
Experience and merit goods......Page 117
Paternalism......Page 118
Wider impacts of television viewing......Page 119
Positive externalities......Page 120
Negative externalities......Page 122
Will people watch what we want them to watch?......Page 123
4.5 Provision of public service broadcasting......Page 124
Licensing of public service broadcasters......Page 125
Commissioning of public service programmes......Page 126
4.6 Public service broadcasting in the analogue era......Page 127
4.7 Public service broadcasting in the digital world......Page 129
Provision of public service broadcasting in the digital world......Page 131
The UK’s public service broadcasting system......Page 133
The impact of digital broadcasting......Page 138
Lessons for students: what have we learned?......Page 140
Lessons for policymakers: what are the priorities for policy in this area?......Page 141
Appendix 4.1: A duopoly model of programme quality......Page 142
Pay-TV regime......Page 143
Advertising-funded TV......Page 145
Comparison of viewer surplus......Page 146
Appendix 4.2: Public service broadcasters in the UK......Page 147
Channel 3 (ITV)......Page 148
S4C......Page 149
References......Page 150
Notes......Page 153
5.1 Introduction......Page 164
5.2 Pluralism: a double definition......Page 166
Modelling media (broadcasting and press) markets......Page 169
Do media companies offer differentiated contents?......Page 170
The MC approach: analytical results (*)......Page 172
Do media industries tend towards concentration or fragmentation?......Page 175
The NO approach: analytical results (*)......Page 178
Vertical integration and foreclosure......Page 180
5.4 Are private incentives sufficient to provide internal pluralism?......Page 181
The main regulatory tools......Page 184
General issues......Page 188
External pluralism......Page 190
Internal pluralism......Page 192
5.6 Conclusion......Page 194
Lessons for researchers: what do we still need to know?......Page 195
References......Page 196
Notes......Page 198
6.1 Introduction......Page 203
The Australian Broadcasting Authority’s Code of Practice......Page 206
Regulations in European countries......Page 209
6.3 A model of advertising caps......Page 211
Viewers......Page 212
Broadcasters......Page 213
Quality......Page 216
Product selection and advertising caps......Page 222
Paternalistic altruism and merit goods......Page 225
The effects of an advertising ban on industry profits......Page 226
Direct-to-consumer (DTC) prescription drug advertising......Page 227
6.5 Conclusion......Page 229
Lessons for researchers: what do we still need to know?......Page 231
References......Page 232
Notes......Page 235
7.1 Introduction......Page 239
7.2 Case review......Page 241
7.3 An econometric framework......Page 248
7.4 A review of the literature......Page 250
7.5 An econometric illustration......Page 256
7.6 Conclusion......Page 261
References......Page 262
Notes......Page 263
PART III Institutional approaches in various jurisdictions......Page 267
8.1 Introduction......Page 269
8.2 The public interest: competition, diversity and localism......Page 272
Competition......Page 273
Diversity: product, source and viewpoint......Page 275
Localism......Page 278
8.3 Policy trade-offs: an illustration......Page 282
8.4 Digital transition and convergence......Page 284
Lessons for researchers: what do we still need to know?......Page 287
References......Page 288
Notes......Page 290
9.1 Introduction......Page 294
Market players, market size and the value-added chain......Page 295
Business strategies......Page 296
9.3 Regulation versus competition in the communication services and media sector......Page 298
Local ‘loop unbundling’......Page 300
Transmission to end-users: an example of the new regulatory framework......Page 301
9.4 Antitrust and merger control in media markets......Page 302
The rationale behind vertical foreclosure......Page 303
Merger control in the case of vertical mergers......Page 305
Antitrust cases......Page 307
Merger control in the case of horizontal mergers......Page 308
Antitrust cases......Page 310
Lessons for students: what have we learned?......Page 311
Lessons for policymakers: what are the priorities for policy in this area?......Page 312
References......Page 313
Appendix 9.1 – An example of a vertical chain market: the book industry......Page 314
Static criteria......Page 315
B. Designation of dominant operators......Page 316
D. Consultation with the EC regulatory authorities......Page 317
Notes......Page 318
10.1 Introduction......Page 324
Market structure and organisation......Page 326
Regulatory policy......Page 327
Ex ante sector-specific regulation versus ex post competition regulation......Page 329
Regulation of market structure versus regulation of market behaviour......Page 330
Static versus dynamic regulation......Page 332
Economic versus general or ‘non-economic’ media regulation......Page 334
10.4 Models of the division of responsibilities......Page 335
Norwegian media ownership regulation – some issues......Page 340
Proposed revisions of the Norwegian media regulatory system......Page 343
Vertical relations......Page 345
The lessons of the Norwegian case......Page 346
Replacing sector-specific economic media regulation by competition policy regulation?......Page 348
10.6 Conclusion......Page 349
Lessons for students: what have we learned?......Page 350
References......Page 351
Notes......Page 354
Index......Page 358