All Academic, Inc. Research Logo

Info/CitationFAQResearchAll Academic Inc.
Document

Vertical integration and the must carry rules in the cable television industry: An empirical analysis
Unformatted Document Text:  Must carry rules 14 another, cable systems would be more likely to carry fewer broadcast stations and reserve the channel space for cable networks. On the other hand, if the reverse were true, cable operators might still choose to carry fewer broadcast stations relative to cable networks to try and increase consumer demand for cable network programming, a finding that would be more consistent with the anti-competitive rationale for non-carriage. The variable SHARE_C, measuring the viewing share of cable networks in a system’s ADI, was used to determine which of these theories was correct. SHARE_C was expected to have a positive effect if the former situation occurs and a negative effect if the latter theory holds true. Station-level variables The station-level variables include three dummy variables that measure whether a stations is a commercial network affiliate station (NETDUMMY), a commercial independent station (INDDUMMY) or a public television station (PBSDUMMY). Other station variables include the age of a broadcast station (AGE_S), the viewing share of a station in its ADI (SHARE_A) and a dummy variable indicating if a station is located in a different ADI from a cable system (ADI_DIFF). If cable operators’ local station carriage decisions were motivated by their desire to limit the local stations’ access to viewers and to further monopolize the local advertising market, then one would expect that stronger stations (both in terms of viewing and local adverting shares), generally network-affiliated and more established stations, would become the primary target. However, previous discussion about the incentives of cable local signal carriage also indicated that popular stations increase the value of a system’s channel lineup and are thus more likely to be carried by cable operators. While the former prediction is in line with the anti-competitive theory about cable’s carriage

Authors: Yan, Zhaoxu.
first   previous   Page 16 of 36   next   last



background image
Must carry rules
14
another, cable systems would be more likely to carry fewer broadcast stations and reserve
the channel space for cable networks. On the other hand, if the reverse were true, cable
operators might still choose to carry fewer broadcast stations relative to cable networks to
try and increase consumer demand for cable network programming, a finding that would
be more consistent with the anti-competitive rationale for non-carriage. The variable
SHARE_C, measuring the viewing share of cable networks in a system’s ADI, was used
to determine which of these theories was correct. SHARE_C was expected to have a
positive effect if the former situation occurs and a negative effect if the latter theory holds
true.
Station-level
variables
The station-level variables include three dummy
variables that measure whether a stations is a commercial network affiliate station
(NETDUMMY), a commercial independent station (INDDUMMY) or a public television
station (PBSDUMMY). Other station variables include the age of a broadcast station
(AGE_S), the viewing share of a station in its ADI (SHARE_A) and a dummy variable
indicating if a station is located in a different ADI from a cable system (ADI_DIFF).
If cable operators’ local station carriage decisions were motivated by their desire
to limit the local stations’ access to viewers and to further monopolize the local
advertising market, then one would expect that stronger stations (both in terms of viewing
and local adverting shares), generally network-affiliated and more established stations,
would become the primary target. However, previous discussion about the incentives of
cable local signal carriage also indicated that popular stations increase the value of a
system’s channel lineup and are thus more likely to be carried by cable operators. While
the former prediction is in line with the anti-competitive theory about cable’s carriage


Convention
All Academic Convention can solve the abstract management needs for any association's annual meeting.
Submission - Custom fields, multiple submission types, tracks, audio visual, multiple upload formats, automatic conversion to pdf.
Review - Peer Review, Bulk reviewer assignment, bulk emails, ranking, z-score statistics, and multiple worksheets!
Reports - Many standard and custom reports generated while you wait. Print programs with participant indexes, event grids, and more!
Scheduling - Flexible and convenient grid scheduling within rooms and buildings. Conflict checking and advanced filtering.
Communication - Bulk email tools to help your administrators send reminders and responses. Use form letters, a message center, and much more!
Management - Search tools, duplicate people management, editing tools, submission transfers, many tools to manage a variety of conference management headaches!
Click here for more information.

first   previous   Page 16 of 36   next   last

©2012 All Academic, Inc.