Competition for Viewers and Advertisers in a TV Oligopoly

Abstract

© Dette eksemplar er fremstilt etter avtale med KOPINOR, Stenergate 1, 0050 Oslo. Ytterligere eksemplarfremstilling uten avtale og i strid med åndsverkloven er straffbart og kan medføre erstatningsansvar. CASE -CENTRE FOR ADVANCED STUDIES IN ECONOMICSCASE -Centre for Advanced Studies in Economics -is a joint centre for The Norwegian School of Economics and Business Administration (NHH), The Institute for Research in Economics and Business Administration (SNF) and The University of Bergen (UiB). Research at CASE includes all types of issues based on economic theory and method, and researchers at the Centre have particular expertise within the areas of international trade, industrial economics, labour market economics, factor mobility, economic integration, industrial policy, international macro economics, tax policy, international transport and maritime research. International Trade and Tax PolicyResearch within this area focuses mainly on issues related to international trade and tax policy, and has generally been dominated by projects aiming to provide increased insight into global structural issues and the effect of regional economic integration. The staff have particular expertise within the fields of international real economics (trade, factor mobility, economic integration and industrial policy), international macro economics and international tax policy, but are also actively involved in projects relating to public economics and industrial policy. Industrial EconomicsIndustrial economics is another central research area at the Centre, within which SNF has longstanding traditions. A series of individual studies have been carried out through large framework programmes funded by the Research Council of Norway and major Norwegian companies. The focal point of these studies is strategic company behaviour in industries with few players, where competition effects are modelled and analysed. The studies have provided important structural and empirical insights into deregulation effects within industries such as airlines, telecommunications and energy and have provided significant input to Norwegian competition policies. The research group includes a number of researchers at both UiB and NHH and has an extensive international network. Labour Market EconomicsThe labour market group focuses on mainly two research areas. One central topic is education and family economics. An important aspect is to analyse the production process for human capital; the importance of family, neighbourhood, preschools and schools for adult education and labour market experience. The other main topic is to analyse firm performance and firm restructuring. These analyses include firm performance, adjustment costs, costs of displacement including health costs, the effect of technological change and international trade, and analysis of organisational change. Human ResourcesCASE is a network-based organisation whose staff consists mainly of professors at Department of Economics at NHH and UiB as well as leading international economists who are ...

Business Models for Media Firms: Does Competition Matter for How They Raise Revenue?

“…We follow Kind et al (2007) in assuming that consumer preferences are given by the following quadratic utility function:…”

“…The latter is a web page for the Norwegian broadcaster TV2, where consumers can pay for watching various video programs. 18 The most important content on TV2 Sumo is live soccer matches from the Norwegian Premier League ("Tippeligaen"). TV2 has the exclusive right to broadcast these matches, which implies that there are no close substitutes on the Internet.…”

The Television Industry as a Market of Attention

“…What is needed is, firstly, a model of a TV oligopoly, and secondly, a specification of viewer preferences that allows us to distinguish between the pure effect of an increase in the number of firms and the effect of increased similarity between them. Such an analysis is found in Kind, et al (2007), where viewers' preferences are modeled through a representative viewer endowed with a utility from watching TV given by a version of the so-called Shubik-Levitan utility function, originally formulated by Shubik and Levitan (1980): , where U is the representative viewer's utility, V i is the quantity of TV watching consumed by the representative viewer at TV channel i, m is the number of TV channels, and s is a measure of similarity of program content, with s = 1 implying that program contents are identical, whereas s = 0 is the opposite extreme with program content being so different that demand for content from various TV channels is independent.…”

“…The analysis in Kind, et al (2007) is based on the presumption that TV firms are totally advertising financed and does therefore not allow for a discussion of pay TV, which is the focus of our present concern. The necessary extension is, however, presented in Kind, et al (2009), on which the present discussion is based.…”

Sports Business and Multisided Markets: Towards a New Analytical Framework?

“…This framework has been applied to several different markets (see table 1 Kind et al 2007;Dewenter & Haucap 2009). Due to their relative closeness to the multisided phenomena on sports markets, we will use insights from advertising-revenue financed media for the purpose of illustrating the more general implications of the multisided markets framework.…”