It is worthwhile to study the impact of terrestrial network coverage on television media markets because the terrestrial broadcasting is considered as the most influential media platform mainly due to its wide network coverage. However, it is not clear how the coverage contributes to the media's prominence. To understand its impact, we focus especially on its economic impact on the market which consists of terrestrial broadcasters and pay TV operators. The pay TVoperators retransmit the terrestrial TV channels under a retransmission consent, so the broadcasters can be seen as vertically integrated operators which are both upstream TV program rights holders and downstream rival distributors to the pay TV operators. By dividing the market into 'inside the coverage' and 'outside the coverage', we investigate the effect of the coverage on subscription price of the pay TV, and profits of both firms. We also study the change of the retransmission fee since the coverage changes their profits thereby affecting the bargaining power.