Working Paper: CEPR ID: DP10676
Authors: Gregory S. Crawford
Abstract: Television is the dominant entertainment medium for hundreds of millions. This chapter surveys the economic forces that determine the production and consumption of this content. It presents recent trends in television and online video markets, both in the US and internationally, and describes the state of theoretical and empirical research on these industries. A number of distinct themes emerge, including the growing importance of the pay-television sector, the role played by content providers (channels), distributors, and negotiations between them in determining market outcomes, and concerns about the effects of market power throughout this vertical structure. It also covers important but unsettled topics including the purpose for and effects of both the old (Public Service Broadcasters) and the new (online video markets). Open theoretical and empirical research questions are highlighted throughout.
Keywords: Advertising; Bargaining; Bundling; Economics; Foreclosure; Market Power; Net Neutrality; Online Video; Pay Television; Public Service Broadcasting; Television
JEL Codes: C72; D40; L32; L40; L50; L82; L86; M37
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| structure of the television market (D49) | production and consumption of content (L82) |
| pricing strategies adopted by broadcasters (D49) | viewer choices (Y10) |
| pricing strategies adopted by broadcasters (D49) | advertising revenues (M30) |
| market power held by content providers and distributors (L11) | negotiation outcomes (C78) |
| negotiation outcomes (C78) | pricing and quality of programming available to consumers (L15) |
| pay television model (D45) | quality programming (C88) |
| ability to charge viewers (Z23) | investment in content (E22) |
| advertising intensity (M37) | viewer dissatisfaction (Y10) |
| viewer dissatisfaction (Y10) | total price viewers are willing to pay (D41) |