Video economics

"Video Economics" is an analysis of the economics and business strategies of the televison industry. Bruce Owen and Steven Wildman identify the complex chain of programme producers, distributors (networks), and retailers (video stores, cable systems, and broadcast stations), whose objectives are to obtain viewers in order to sell them to advertisers, to charge them an admission fee, or both. Among the concepts the authors explain and apply are those of public good, economies of scale, and price discrimination.

Since about 1975 the US television industry has been transformed from a heavily regulated business to a highly competitive one, with new networks, technologies, and markets. "Video Economics" addresses the major issues affecting competitive advantage in the industry, including sequential programme release strategies known as windowing, competition among programme producers, the economics of networking, cable televison, scheduling strategies and high definition television. The authors present the economic tools required to analyze the industry as they take up each new topic. This book will be of particular interest to students of the mass media, communication policy officials, communication lawyers and consultants, and media and advertising executives.

Part 1 introduction: basic economics of broadcast television; players in the industry; regulatory reform; the notion of a public good. Part 2 The supply of programming: windowing; competition among producers; foreign markets; the competitiveness of program supply. Part 3 Traditional models of program choice: Steiner models; the Beebe model; pay television. Part 4 Modern models of program choice: demand analysis; welfare analysis; the Spence-Owen model; the Wildman-Owen model; multichannel programming; new directions in program choice. Part 5 Network economics: network basics; television news; regulation; risk bearing; the new cable networks; the decline of the broadcast networks; the future of the broadcast networks; strategic options. Part 6 Cable television: cable and the FCC; new program services; bundling of transmission and content; natural monopoly and local market power; the effective competition standard; no case for reregulation; price elasticity of cable demand; competition from new entrants; too few gatekeepers?; the issue of access; monopsony power; vertical integration; regulatory policy; local broadcasters and cable; telephone companies and cable. Part 7 Advanced tel…