Banning Ads from Prime-Time State Television: Lessons from France

35 Pages Posted: 24 Oct 2012

See all articles by Lapo Filistrucchi

Lapo Filistrucchi

Tilburg University, TILEC; University of Florence, Dipartimento di Scienze Economiche

Luigi Luini

University of Siena - Department of Economics

Andrea Mangani

University of Pisa - Department of Political Science

Date Written: September 30, 2012

Abstract

We analyse the effects of the advertising ban on French public television, which came into effect on the 5th of January 2009. The ban forbids commercial advertising on public TV in the time slot 20.00-6.00. By using a difference-in-difference approach we show that advertising which was previously broadcasted on public TV in the time slot 20.00-6.00 did not switch to private channels in the same time slot (nor did the price per second in that time slot on private channels rise). Rather advertising partly switched to public TV in the time slot 6.00-20.00. The trend away from aerial towards non-aerial TV channels continued but was not increased. The common expectation that the ban would favour private TV channels at the expense of public ones was therefore wrong. Interestingly, the relative audience of public to private TV did not tilt in favour of public TV. This suggests that advertising aversion is not the driving parameter at work. More likely, for advertisers, viewers of public TV in the slot 6.00-20.00 are closer substitutes for viewers of public TV in the slot 20.00-6.00 than are viewers of private TV channels in the slot 20.00-6.00.

Keywords: two-sided markets, media, advertising regulation, television, public service broadcasting

JEL Classification: L82, D18, M7

Suggested Citation

Filistrucchi, Lapo and Luini, Luigi and Mangani, Andrea, Banning Ads from Prime-Time State Television: Lessons from France (September 30, 2012). NET Institute Working Paper No. 12-23. Available at SSRN: https://ssrn.com/abstract=2165452 or http://dx.doi.org/10.2139/ssrn.2165452

Lapo Filistrucchi (Contact Author)

Tilburg University, TILEC ( email )

P.O. Box 90153
Tilburg, Noord-Brabant NL-5000 LE
Netherlands
+31 13 466 3360 (Phone)
+31 13 466 3042 (Fax)

HOME PAGE: http://www.lapofilistrucchi.com

University of Florence, Dipartimento di Scienze Economiche ( email )

via delle Pandette 9
Florence, Florence IT-50127
Italy
+39 055 2759579 (Phone)
+39 055 2759910 (Fax)

HOME PAGE: http://www.lapofilistrucchi.com

Luigi Luini

University of Siena - Department of Economics ( email )

Piazza S. Francesco, 7
Siena, I-53100
Italy

Andrea Mangani

University of Pisa - Department of Political Science ( email )

Via Serafini, 3
I-56126 Pisa
Italy

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