Helen Weeds

TV Wars: Exclusive Content and Platform Competition in Pay TV

The paper examines incentives for exclusive distribution of premium television content such as live sports and Hollywood movies. Static analysis shows that a pay TV operator with premium content always chooses to supply its retail rival, using per-subscriber fees to soften competition. Incorporating platform competition, however, exclusive content gives its holder a market share advantage that is amplified by dynamic effects. Under some conditions this benefit outweighs the opportunity cost of forgone wholesale fees, making exclusivity the equilibrium choice. The analysis explains the observed incidence of content exclusivity in pay TV. Specific dynamic mechanisms are explored, and welfare and policy implications are discussed.

Is the Television Licence Fee Fit for Purpose in the Digital Era

In the context of the UKs ongoing review of the BBCs Royal Charter, this article discusses the future of the television licence fee. As channels proliferate and new ways of watching television take hold, there is increasing pressure on the TV licence system. Drawing on an analysis of the rationale for public service broadcasting, the article considers whether the licence fee can be adapted to reflect this new world or should be replaced by a different funding model. It concludes that while modernising the TV licence fee to close the ‘iPlayer loophole’ would patch up the current system, it would be preferable to replace the licence fee altogether, perhaps with a household levy. Subscription may be a useful top-up for non-essential services where a broad reach is less important. The ban on the carrying of advertising by the BBC should also be reconsidered.