5 juillet 2024
info:eu-repo/semantics/OpenAccess
David Martimort et al., « Why Is Exclusivity in Broadcasting Rights Prevalent and Why Does Simple Regulation Fail? * », HAL-SHS : économie et finance, ID : 10670/1.5k2dsy
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.