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- Title
The impacts of cable retransmission on television broadcasters.
- Authors
Liebowitz, S. J.
- Abstract
This paper examines the impacts of cable retransmission of television broadcasts on the revenues of television broadcasters in Canada. Estimation of an hedonic price function relating advertising rates to audience characteristics allows the quantification of four potential impacts of cable or broadcast revenues. These four potential impacts of cable on broadcaster revenues, which are likely to occur in any advertising-based broadcast environment, are examined in some detail. Since these four impacts ignore the cable induced shift in viewers from Canadian to American broadcasts, a uniquely Canadian problem, one final adjustment is made to account for this shift. The somewhat surprising findings indicate a slightly positive net impact of the four cable induced effects on revenues although when the cable induced shift of viewers to American stations is taken into account the net impact becomes slightly negative. I conclude that cable does not appear to have a powerful impact on broadcast revenues. These results are relevant to current controversies surrounding both copyright and broadcast policy.
- Subjects
CANADA; CABLE television; TELEVISION broadcasting
- Publication
Canadian Journal of Economics, 1982, Vol 15, Issue 3, p503
- ISSN
0008-4085
- Publication type
Article
- DOI
10.2307/134763