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Network Effects in the U.S. Cable Television Industry: An Empirical Examination of Cable Network Externalities

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Abstract:

The primary purpose of this study is to examine the network effects in the cable television industry that could explain the observable benefits to subscribers. This study examined whether cable systems with a larger network would provide more benefits to subscribers than cable systems of smaller size. Two-stage least squares and logistic regression analyses, using the data from the 2004 Television & Cable Fact Book and the U.S. Government Census showed the existence of indirect, positive network effects for cable television networks of significant size. Specifically, the regression analysis indicated that cable systems that have a larger network are likely to have a greater possibility for two-way network capability and a more channel capacity for basic-tier cable service.

Most Common Document Word Stems:

network (255), cabl (184), system (86), effect (83), size (71), local (60), industri (59), way (46), studi (45), servic (44), two (41), subscrib (38), two-way (35), u.s (34), capac (33), capabl (32), 1 (29), oper (29), variabl (29), number (26), competit (24),

Author's Keywords:

network effects, externalities, U.S. cable television industry
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Association:
Name: International Communication Association
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http://www.icahdq.org


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MLA Citation:

Seo, Sangho. "Network Effects in the U.S. Cable Television Industry: An Empirical Examination of Cable Network Externalities" Paper presented at the annual meeting of the International Communication Association, Dresden International Congress Centre, Dresden, Germany, Jun 16, 2006 <Not Available>. 2013-12-17 <http://citation.allacademic.com/meta/p90119_index.html>

APA Citation:

Seo, S. , 2006-06-16 "Network Effects in the U.S. Cable Television Industry: An Empirical Examination of Cable Network Externalities" Paper presented at the annual meeting of the International Communication Association, Dresden International Congress Centre, Dresden, Germany Online <APPLICATION/PDF>. 2013-12-17 from http://citation.allacademic.com/meta/p90119_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: The primary purpose of this study is to examine the network effects in the cable television industry that could explain the observable benefits to subscribers. This study examined whether cable systems with a larger network would provide more benefits to subscribers than cable systems of smaller size. Two-stage least squares and logistic regression analyses, using the data from the 2004 Television & Cable Fact Book and the U.S. Government Census showed the existence of indirect, positive network effects for cable television networks of significant size. Specifically, the regression analysis indicated that cable systems that have a larger network are likely to have a greater possibility for two-way network capability and a more channel capacity for basic-tier cable service.

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