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The Regulation of Public Service Broadcasters : Should there be more advertising on television?

Author

Listed:
  • Crawford, Gregory S.
  • Deer, Lachlan
  • Smith, Jeremy
  • Sturgeon, Paul

Abstract

Increased competition for viewers’ time is threatening the viability of publicservice broadcasters (PSBs) around the world. Changing regulations regarding advertising minutes might increase revenues, but little is known about the structure of advertising demand. To address this problem, we collect a unique dataset on monthly impacts (quantities) and prices of UK television channels between 2002 and 2009 to estimate the (inverse) demand for advertising on both public and commercial broadcasters. We find that increasing PSB advertising minutes to the level permitted for non-PSBs would increase PSB and industry revenue by 10.5% and 6.7%.

Suggested Citation

  • Crawford, Gregory S. & Deer, Lachlan & Smith, Jeremy & Sturgeon, Paul, 2017. "The Regulation of Public Service Broadcasters : Should there be more advertising on television?," Economic Research Papers 269092, University of Warwick - Department of Economics.
    • Handle: RePEc:ags:uwarer:269092
    DOI: 10.22004/ag.econ.269092
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    Cited by:

    1. Abi-Rafeh, Rossi & Dubois, Pierre & Griffith, Rachel & O'Connell, Martin, 2023. "The Effects of Sin Taxes and Advertising Restrictions in a Dynamic Equilibrium," CEPR Discussion Papers 18527, C.E.P.R. Discussion Papers.
    2. Anna Kerkhof & Johannes Münster, 2023. "Strategic Complementarities in a Model of Commercial Media Bias," CESifo Working Paper Series 10738, CESifo.
    3. Abi-Rafeh, Rossi & Dubois, Pierre & Griffith, Rachel & O'Connell, Martin, 2023. "The Effects of Sin Taxes and Advertising Restrictions in a Dynamic Equilibrium," CEPR Discussion Papers 18527, C.E.P.R. Discussion Papers.
    4. Anna Kerkhof & Johannes Münster, 2023. "Strategic Complementarities in a Model of Commercial Media Bias," ECONtribute Discussion Papers Series 261, University of Bonn and University of Cologne, Germany.

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    More about this item

    Keywords

    Financial Economics;

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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