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The regulation of public service broadcasters: should there be more advertising on television?


Crawford, Gregory S; Deer, Lachlan; Smith, Jeremy; Sturgeon, Paul (2017). The regulation of public service broadcasters: should there be more advertising on television? Working paper series / Department of Economics 268, University of Zurich.

Abstract

Increased competition for viewers’ time is threatening the viability of public-service 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%.

Abstract

Increased competition for viewers’ time is threatening the viability of public-service 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%.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Department of Economics
Dewey Decimal Classification:330 Economics
JEL Classification:D2, L1, L5, M3
Uncontrolled Keywords:Advertising, public service broadcasting, television markets, inverse demand, Öffentlich-rechtliches Fernsehen, Privates Fernsehen, Werbung, Nachfrage, Regulierung, Werbeeinnahmen
Language:English
Date:November 2017
Deposited On:08 Nov 2017 11:31
Last Modified:16 Mar 2022 08:05
Series Name:Working paper series / Department of Economics
Number of Pages:38
ISSN:1664-7041
OA Status:Green
Official URL:http://www.econ.uzh.ch/static/wp/econwp268.pdf
Related URLs:http://www.econ.uzh.ch/static/workingpapers.php

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