Working Paper No. 691

Exclusive Quality - Why Exclusive Distribution May Benefit the TV-viewers

Published: January 9, 2007Pages: 44Keywords: Exclusive Contracts; Quality; Bargaining; Avertising; InvestmentJEL-codes: C78; D43; K21; L42

Exclusive Quality - Why Exclusive Distribution May Benefit the TV-viewers Johan Stennek


Sports organizations, Hollywood studios and TV channels grant satellite and cable networks exclusive rights to televise their matches, movies and media contents. Exclusive distribution prevents viewers from watching attractive programs, and reduces the TV-distributors incentives to compete in prices. This paper demonstrates that exclusive distribution may also give providers of contents incentives to invest in higher quality and, as a result, force competitors to reduce their prices. Exclusive distribution may benefit all viewers, including those who are excluded.

 

Interdisciplinary European Studies

The European Union and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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