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Why Is Exclusivity in Broadcasting Rights Prevalent and Why Does Simple Regulation Fail ?

Author

Listed:
  • David Martimort

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CNRS - Centre National de la Recherche Scientifique)

  • Jérôme Pouyet

    (CNRS - Centre National de la Recherche Scientifique)

Abstract

Pay-TV firms compete both downstream to attract viewers and upstream to acquire broadcasting rights. Because profits inherited from downstream competition satisfy a convexity property, allocating rights to the dominant firm maximizes the industry profit. Such an exclusive allocation of rights emerges as a robust equilibrium outcome but may fail to maximize welfare. We analyze whether a ban on resale and a ban on package bidding may improve welfare. These corrective policies have no impact on the final allocation but lead to profit redistribution along the value chain.

Suggested Citation

  • David Martimort & Jérôme Pouyet, 2024. "Why Is Exclusivity in Broadcasting Rights Prevalent and Why Does Simple Regulation Fail ?," Working Papers hal-04841128, HAL.
    • Handle: RePEc:hal:wpaper:hal-04841128
    Note: View the original document on HAL open archive server: https://hal.science/hal-04841128v1
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