Platform strategy of terrestrial TV broadcasters

Yunhyoung Kim, Jeonghoon Mo, Weonseek Kim

Research output: Contribution to journalArticle

Abstract

Terrestrial broadcasting network is the main delivery platform of terrestrial broadcasters and its coverage represents the capacity. We study economic impacts of coverage on TV service markets, which consist of broadcasters and pay-TV operators with retransmission, by dividing the market into “inside” and “outside” the coverage. Our results suggest that the broadcaster ends up with two extreme options in equilibrium: not operating networks or operating networks at a full capacity. However, the former option is not desirable if the retransmission fee changes according to the coverage. On the basis of the main results derived, implications for broadcasters and the government are discussed.

Original languageEnglish
Pages (from-to)583-595
Number of pages13
JournalManagerial and Decision Economics
Volume40
Issue number6
DOIs
Publication statusPublished - 2019 Jan 1

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All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management
  • Management Science and Operations Research
  • Management of Technology and Innovation

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