Bundling subscription TV channels: a case of natural bundling

Article Abstract:

The dynamics of commodity bundling or package selling are analyzed in the context of subscription TV channels (STV). STVs are found to be a case of natural bundling based on the fundamental characteristic of technology. Commodity bundling in this market is not due to the producer's desire to gain consumer surplus, but to the limited scope of distribution technology. Pricing and production with certain restrictions such as pure-bundling or pure-components pricing are also discussed.

Pricing

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Why firms may prefer not to price discriminate via mixed bundling

Article Abstract:

An analysis of joint purchase discounts and consumer purchases is presented. The analysis examines a purchasing model by applying a discrete choice framework as a basis for consumer preferences. It is shown that the practice of mixed bundling reflects a close association with monopoly conditions. The link with monopoly is influenced by price discrimination benefits. However, duopoly markets permit only pure components pricing.

Purchasing, Consumer preferences, Price discrimination

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Pay-per-view broadcasting of outstanding events: Consequences of a ban

Article Abstract:

The consequences of a regulatory ban on pay-per-view broadcasting of certain outstanding events, are considered, when an alternative is to finance events solely by TV commercials.

Research, Television advertising, Pay-per-view television

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