The Consumer Gains from Direct Broadcast Satellites and the Competition with Cable Television

The Consumer Gains from Direct Broadcast Satellites and the Competition with Cable Television
Author: Austan Goolsbee
Publisher:
Total Pages: 39
Release: 2001
Genre: Cable television
ISBN:

This paper examines the introduction of Direct Broadcast Satellites as an alternative to cable television and the welfare gains such satellites generated for consumers. The extent to which satellites compete with cable has become an important issue in the debate over re-regulation of cable prices. We estimate a consumer level demand system for satellite, basic cable, premium cable and local antenna using extensive micro data on the television choices of more than 15,000 people as well as price and characteristics data on cable companies throughout the nation. The results indicate that, after properly controlling for unobservable product attributes and the endogeneity of prices, the direct welfare gain to satellite buyers averages about $50 dollars per year or approximately $450 million annually in the aggregate. Estimates that do not control for unobserved attributes and endogenous prices overstate the welfare gains by almost a factor of fifteen. The price sensitivity of satellite to both its own price and the price of cable is extremely high. The price sensitivity of cable, however, is low, likely indicating that satellite is not a close substitute at the time of our sample

Toward Competition in Cable Television

Toward Competition in Cable Television
Author: Leland L. Johnson
Publisher: American Enterprise Institute
Total Pages: 244
Release: 1994-06
Genre: Business & Economics
ISBN: 9780844740553

This book identifies the major sources of competition to the cable television industry, such as telephone companies, direct broadcast satellite services, and traditional broadcasting stations.

Competition Between Cable Television and Direct Broadcast Satellite - It's More Complicated Than You Think

Competition Between Cable Television and Direct Broadcast Satellite - It's More Complicated Than You Think
Author: Andrew Wise
Publisher:
Total Pages: 0
Release: 2020
Genre:
ISBN:

Direct Broadcast Satellite (DBS) is often considered a substitute for basic cable service, but current cable subscribers may face substantial switching costs to move from cable to DBS services. We use aggregate firm-level price data and other related demographic variables to examine the cost of switching from cable to DBS and vice versa. We find some firm-specific attributes and demographic variables that influence consumer choice and switching costs that appear to affect consumers' desire to switch from one service to another. We then use observation-specific dummy variables that stratify cable price based on changes in the level of cable prices between two periods to examine whether consumer behavior varies depending on the size of price change. We find that when quality-adjusted prices for basic cable services increase substantially, subscribers will switch from cable to DBS, presumably at the point at which the price change is larger than the cost of switching.

Microeconomics

Microeconomics
Author: David Besanko
Publisher: John Wiley & Sons
Total Pages: 821
Release: 2010-10-25
Genre: Business & Economics
ISBN: 0470563583

Business professionals that struggle to understand key concepts in economics and how they are applied in the field rely on Microeconomics. The fourth edition makes the material accessible while helping them build their problem-solving skills. It includes numerous new practice problems and exercises that arm them with a deeper understanding. Learning by Doing exercises explore the theories while boosting overall math skills. Graphs are included throughout the mathematical discussions to reinforce the material. In addition, the balanced approach of rigorous economics gives business professionals a more practical resource.

The Cable and Satellite Television Industries

The Cable and Satellite Television Industries
Author: Patrick Parsons
Publisher: Allyn & Bacon
Total Pages: 392
Release: 1998
Genre: Performing Arts
ISBN:

The world of cable and satellite delivered television is constantly evolving and changing with new technology. These new technologies, especially the transition to digital distribution, are altering the world of television. The momentous results of these changes can be seen in the convergence of communications markets and services. This is the only book on the market that successfully captures the scope and detail of these developments. It examines the convergence and competition of emerging television industries both domestically and internationally. This book's clarity and comprehensibility make it accessible to readers without a background in these areas. Also, current employees in the industry will benefit from the broad based topics of the industry that are explored in this book. These topics include chapters on history, technology, industry structure, industry programming and services, daily operations, law and policy, international activities, and social issues. Also included is a detailed discussion of the 1996 Telecommunications Act, as well as other legal issues that are crucial to a clear understanding of the industry. Ultimately this book is a detailed review of where cable and satellite has come from, what it is like today, where it is headed and why, and how it relates to other media. Industry gurus and novices alike. Part of the Allyn & Bacon Series inMass Communication.