The Regulation of Public Service Broadcasters: Should There Be More Advertising on Television?

University of Zurich, Department of Economics, Working Paper No. 268

40 Pages Posted: 14 Nov 2017

See all articles by Gregory S. Crawford

Gregory S. Crawford

University of Zurich - Department of Economics

Lachlan Deer

University of Zurich - Department of Economics

Jeremy Smith

University of Warwick - Department of Economics

Paul R Sturgeon

Mindshare

Multiple version iconThere are 2 versions of this paper

Date Written: May 10, 2017

Abstract

Increased competition for viewers’ time is threatening the viability of public-service broadcasters (PSBs) around the world. Changing regulations regarding advertising minutes might increase revenues, but little is known about the structure of advertising demand. To address this problem, we collect a unique dataset on monthly impacts (quantities) and prices of UK television channels between 2002 and 2009 to estimate the (inverse) demand for advertising on both public and commercial broadcasters. We find that increasing PSB advertising minutes to the level permitted for non-PSBs would increase PSB and industry revenue by 10.5% and 6.7%.

Keywords: advertising, public service broadcasting, television markets, inverse demand

JEL Classification: D2, L1, L5, M3

Suggested Citation

Crawford, Gregory S. and Deer, Lachlan and Smith, Jeremy P. and Sturgeon, Paul R, The Regulation of Public Service Broadcasters: Should There Be More Advertising on Television? (May 10, 2017). University of Zurich, Department of Economics, Working Paper No. 268, Available at SSRN: https://ssrn.com/abstract=3067297 or http://dx.doi.org/10.2139/ssrn.3067297

Gregory S. Crawford (Contact Author)

University of Zurich - Department of Economics ( email )

Schönberggasse 1
Zürich, CH-8001
Switzerland

HOME PAGE: http://www.econ.uzh.ch/faculty/groupcrawford.html

Lachlan Deer

University of Zurich - Department of Economics ( email )

Zürich
Switzerland

Jeremy P. Smith

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom

Paul R Sturgeon

Mindshare ( email )

London
United Kingdom

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