Article Abstract:
The US government, since the start of the television era in 1952, has allowed television stations to profit considerably from unrestricted access to portions of the electromagnetic spectrum. It is estimated that the combined value of profits of owned and operated stations from the period 1959-1980 range between $483 million and $8.5 billion. The Federal Communications Commission, through several regulations, was able to reduce this amount by $1.2 billion, or a third of total potential profits. The application of the Prime Time Access Rule and the prohibition of cigarette advertising are two major regulations that FCC instituted in 1971.
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Article Abstract:
Profit and welfare criteria were used to determine characteristics that make programs more likely to be broadcasted than to be aired on pay channels. In terms of market size, a broadcaster tend to produce higher earnings and welfare than a narrowcaster under an extensive market. Advertising also becomes more profitable as the extent of the market increases. On the other hand, the more intensive the market is, the more desirable pay television becomes.
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Article Abstract:
The trade-off between mimicking and counter-programming strategies in the pay and the advertiser-supported television industries is analyzed. The comparison between the market provision and the socially optimum provision of programmes is presented.
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