Advertising, programme choice, and competition concerns in a mixed duopoly television broadcast industry
04 Sep 2014-International Journal of Economics and Business Research (Inderscience Publishers Ltd)-Vol. 8, Iss: 3, pp 309-323
TL;DR: In this article, the authors analyse the advertising intensity choices of broadcasters as well as the programme choice of viewers in a mixed duopoly television industry and find that social welfare is higher, and contrary to their complaints, private broadcaster profits may be higher under mixed-duopoly than under private duopoly.
Abstract: The data reveals pervasive state ownership of the television media as well as a large share of television audiences for state broadcasters the world over. The mixed economy literature in one-sided markets recognises the possibility that anti-competitive actions of state owned enterprises may lower social welfare as well as private competitor profit. We analyse the advertising intensity choices of broadcasters as well as the programme choice of viewers in a mixed duopoly television industry. We find that social welfare is higher, and contrary to their complaints, private broadcaster profits may be higher under mixed duopoly than under private duopoly.
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01 Jan 2021
TL;DR: The result of this study shows that the fuzzy VIKOR method could be applied in new product promotion stage to accelerate a customer’s purchase intention through appropriate media mix.
Abstract: Appropriate advertising strategies or media determine the potential customer reach, adaptability and acceptability, and help the brand image to attain competitive advantage. The selection of the advertising media is a challenging task, and furthermore, the complexity increases when it comes to the promotion of new product to the market. In this paper, an attempt has been made to develop a framework for the selection of suitable advertising media for the release of a new insurance product using fuzzy VIKOR (meaning is multicriteria optimization and compromise solution) method. The case of this new insurance product is presented to exhibit the applicability of the fuzzy VIKOR method. The result of this study shows that it could be applied in new product promotion stage to accelerate a customer’s purchase intention through appropriate media mix.
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TL;DR: In this article, the authors examine patterns of media ownership in 97 countries around the world and find that almost universally the largest media firms are controlled by the government or by private families, and the adverse effects of government ownership on political and economic freedom are stronger for newspapers than for television.
Abstract: The authors examine patterns of media ownership in 97 countries around the world. They find that almost universally the largest media firms are controlled by the government or by private families. Government ownership is more pervasive in broadcasting than in the printed media. Government ownership is generally associated with less press freedom, fewer political and economic rights, inferior governance, and, most conspicuously, inferior social outcomes in education and health. The adverse effects of government ownership on political and economic freedom are stronger for newspapers than for television. The adverse effects of government ownership of the media do not appear to be restricted solely to instances of government monopoly. The authors present a range of evidence on the adverse consequences of state ownership of the media. State ownership of the media is often argued to be justified on behalf of the social needs of the disadvantaged. But if their findings are correct, increasing private ownership of the media--through privatization or by encouraging the entry of privately owned media--can advance a variety of political and economic goals, especially those of meeting the social needs of the poor.
575 citations
TL;DR: In this paper, the authors present a theory of the market provision of broadcasting and use it to address the nature of market failure in the industry, where advertising levels may be too low or too high, depending on the nuisance cost to viewers, the substitutability of programs, and the expected benefits to advertisers from contacting viewers.
Abstract: This paper presents a theory of the market provision of broadcasting and uses it to address the nature of market failure in the industry. Advertising levels may be too low or too high, depending on the nuisance cost to viewers, the substitutability of programs, and the expected benefits to advertisers from contacting viewers. Market provision may allocate too few or too many resources to programming and these resources may be used to produce programs of the wrong type. Monopoly ownership may produce higher social surplus than competitive ownership and the ability to price programming may reduce social surplus.
563 citations
Posted Content•
TL;DR: In this paper, the authors compare the advertising intensity and content of programming in a market with competing media platforms, and show that if viewers strongly dislike advertising, the advertisement intensity is greater under free-to-air television.
Abstract: We compare the advertising intensity and content of programming in a market with competing media platforms. With pay-tv, media platforms have two sources of revenues, advertising revenues and revenues from viewers. With free-to-air media, platforms receive all revenues from advertising. We show that if viewers strongly dislike advertising, the advertising intensity is greater under free-to-air television. We also show that free-to-air television tends to provide more similar content whereas pay-tv stations differentiate their content. In addition, we compare the welfare properties of the two different schemes.
246 citations
TL;DR: In this paper, the authors compare the advertising intensity and content of programming in a market with competing media platforms and compare the welfare properties of the two different schemes, and show that if viewers strongly dislike advertising, advertising intensity is greater under free-to-air television.
197 citations
Posted Content•
TL;DR: In this article, the authors analyze competition between two private television channels that derive their profits from advertising receipts and show that these profits are proportional to total population advertising attendance, and that whenever ads' interruptions are costly for viewers the program mixes of the channels never converge but that the niche strategies are less effective.
Abstract: We analyze competition between two private television channels that derive their profits from advertising receipts. These profits are shown to be proportional to total population advertising attendance. The channels play a sequential game in which they first select their profiles (program mixes) and then their advertising ratios. We show that these ratios play the same role as prices in usual horizontal differentiation models. We prove that whenever ads' interruptions are costly for viewers the program mixes of the channels never converge but that the niche strategies are less effective and that the channel profiles are closer as advertising aversion becomes stronger.
181 citations