Abstract
In the context of Korea's unique monopolistic television advertising market, this paper compares separate selling, where a media representative sells each TV broadcaster's advertising time separately, with pure bundling, where advertising slots are bundled and sold as a package. We analyze the media representative's choice of separate selling and pure bundling of ad slots, and how that choice affects a broadcaster's choice of program quality. We show that pure bundling of advertising times by a media representative impairs a major broadcaster's choice of program quality as compared to separate selling. Furthermore, it can deteriorate the overall quality of TV programs, and thus contravening the government's interest in diverse public service broadcasting. This paper provides policy implications for the sales mechanism for television advertising in Korea.
| Original language | English |
|---|---|
| Pages (from-to) | 422-431 |
| Number of pages | 10 |
| Journal | Telematics and Informatics |
| Volume | 33 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 2016 May 1 |
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All Science Journal Classification (ASJC) codes
- Communication
- Computer Networks and Communications
- Electrical and Electronic Engineering
- Law
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Economic analysis of the media representative's bundling strategy and program quality : The Korean experience. / Kim, Weonseek; Lee, Sang Woo.
In: Telematics and Informatics, Vol. 33, No. 2, 01.05.2016, p. 422-431.Research output: Contribution to journal › Article
TY - JOUR
T1 - Economic analysis of the media representative's bundling strategy and program quality
T2 - The Korean experience
AU - Kim, Weonseek
AU - Lee, Sang Woo
PY - 2016/5/1
Y1 - 2016/5/1
N2 - In the context of Korea's unique monopolistic television advertising market, this paper compares separate selling, where a media representative sells each TV broadcaster's advertising time separately, with pure bundling, where advertising slots are bundled and sold as a package. We analyze the media representative's choice of separate selling and pure bundling of ad slots, and how that choice affects a broadcaster's choice of program quality. We show that pure bundling of advertising times by a media representative impairs a major broadcaster's choice of program quality as compared to separate selling. Furthermore, it can deteriorate the overall quality of TV programs, and thus contravening the government's interest in diverse public service broadcasting. This paper provides policy implications for the sales mechanism for television advertising in Korea.
AB - In the context of Korea's unique monopolistic television advertising market, this paper compares separate selling, where a media representative sells each TV broadcaster's advertising time separately, with pure bundling, where advertising slots are bundled and sold as a package. We analyze the media representative's choice of separate selling and pure bundling of ad slots, and how that choice affects a broadcaster's choice of program quality. We show that pure bundling of advertising times by a media representative impairs a major broadcaster's choice of program quality as compared to separate selling. Furthermore, it can deteriorate the overall quality of TV programs, and thus contravening the government's interest in diverse public service broadcasting. This paper provides policy implications for the sales mechanism for television advertising in Korea.
UR - http://www.scopus.com/inward/record.url?scp=84943303104&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84943303104&partnerID=8YFLogxK
U2 - 10.1016/j.tele.2015.09.003
DO - 10.1016/j.tele.2015.09.003
M3 - Article
AN - SCOPUS:84943303104
VL - 33
SP - 422
EP - 431
JO - Telematics and Informatics
JF - Telematics and Informatics
SN - 0736-5853
IS - 2
ER -