TV-Broadcasting Competition and Advertising
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Firms operating in the television industry lie at the interface between two
markets. In the first one, they sell their audience and part of their broad-
casting time to advertising companies (the advertising market). In the second
they compete for increasing the size of their audiences by proposing attrac-
tive program-mixes to TV-viewers (the audience market). Two major links
make these markets tightly interrelated. First, the larger the audience of a
particular TV-channel, the more attractive this channel as a media support
for the advertisers, and the higher their willingness to pay for having ad-spots
inserted in its program. This simply reflects the fact that the impact of...
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