Working Paper Series
Exclusive Quality - Why Exclusive Distribution may Benefit the TV-viewers
Abstract: Sports organizations, Hollywood studios and TV channels
grant satellite and cable networks exclusive rights to televise their
matches, movies and media contents. Exclusive distribution prevents viewers
from watching attractive programs, and reduces the TV-distributors
incentives to compete in prices. This paper demonstrates that exclusive
distribution may also give providers of contents incentives to invest in
higher quality and, as a result, force competitors to reduce their prices.
Exclusive distribution may benefit all viewers, including those who are
Keywords: Exclusive Contracts; Quality; Bargaining; Avertising; Investment; (follow links to similar papers)
JEL-Codes: C78; D43; K21; L42; (follow links to similar papers)
44 pages, January 9, 2007
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