Citation

Discussion Paper Details

Please find the details for DP9079 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Advertising and the Distribution of Content

Author(s): Helen Weeds

Publication Date: August 2012

Keyword(s): Advertising, Broadcasting, Exclusivity and Internet

Programme Area(s): Industrial Organization

Abstract: This paper examines incentives for exclusive distribution of content in the presence of advertising. A monopoly seller of content - such as televisation rights to popular sports - may contract with one or both of two competing distributors, charging lump-sum fees. When distributors are subscription-funded, exclusive sale to a single buyer is the seller's profit-maximising choice, even when distributors also sell advertising airtime. When distributors are purely advertising-funded, however, non-exclusive contracting may instead be preferred. Advertising revenues accruing directly to the content provider may also generate a preference for non-exclusivity even when selling to subscription-funded distributors. The analysis has implications for the distribution of content to pay TV and free-to-air broadcasters, and for internet distribution of content.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9079

Bibliographic Reference

Weeds, H. 2012. 'Advertising and the Distribution of Content'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9079