Video Economics

Bruce M. Owen is Morris M. Doyle Centennial Professor in Public Policy, Emeritus, at Stanford University, and Senior Fellow, Emeritus, at Stanford’s Institute for Economic Policy Research. From 1981 to 2003, he was CEO of Economists Incorporated. Steven S. Wildman is Associate Professor, Department of Communication Studies, Northwestern University.

• * Preface 1. Introduction * Basic Economics of Broadcast Television * Players in the Industry * Regulatory Reform * The Notion of a Public Good * Summary 2. The Supply of Programming * Windowing * Competition among Producers * Foreign Markets * The Competitiveness of Program Supply * Summary 3. Traditional Models of Program Choice * Steiner Models * The Beebe Model * Pay Television * Summary 4. Modern Models of Program Choice * Demand Analysis * Welfare Analysis * The Spence-Owen Model * The Wildman-Owen Model * Multichannel Programming * New Directions in Program Choice * Summary 5. Network Economics * Network Basics * Television News * Regulation * Risk Bearing * The New Cable Networks * The Decline of the Broadcast Networks * The Future of the Broadcast Networks * Strategic Options * Summary 6. Cable Television * Cable and the FCC * New Program Services * Bundling of Transmission and Content * Natural Monopoly and Local Market Power * The Effective Competition Standard * No Case for Reregulation * Price Elasticity of Cable Demand * Competition from New Entrants * Too Few Gatekeepers? * The Issue of Access * Monopsony Power * Vertical Integration * Regulatory Policy * Local Broadcasters and Cable * Telephone Companies and Cable * Summary 7. Advanced Television * Terminology * Brief History * The Economics of Standard Setting * Television Standards * Network Externalities * Obstacles to ATV Adoption * NTSC-ATV Compatibility * The Importance of Compatibility * Adoption Scenarios * Policy Issues * Summary * Bibliography * Notes * Index

As deregulation loosens government controls and fosters the television industry’s competitive spirit, uncharted issues face management in such areas as cable expansion, new networks, technological progress and marketing opportunities. Bruce Owen and Steven Wildman address these emerging situations and outline strategies to assist the industry in its adjustment to a greater freedom, while still preserving its primary role as purveyors of a free flow of information.