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Bundling in Cable Television: A Pedagogical Note With a Policy Option

In: The International Journal on Media Management, Vol. 6, No. 3&4, 2004.

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Text type:	journal paper
Language:	English
Quality:	double-blind reviewed
Authors:	Brown, Keith ; Alexander, Peter J.

Abstract:	Bundling can be a pricing mechanism by which monopolists capture economic surplus from consumers.Wesuggest that given the cost structure of media markets, channel bundling in the cable and satellite marketcould also emerge in a competitive environment. A la carte channel pricing on cable television may or maynot increase consumer welfare and could decrease total welfare. Because bundling may create other problems,policymakers may consider allowing cable and satellite networks to sell packages of channel space toviewers at a given price, allowing viewers to choose which channels they want in their packages. We termthis option quasi-bundling.

Citation:	Brown, Keith, Alexander, Peter J.(2005): Bundling in Cable Television: A Pedagogical Note With a Policy Option, in:The International Journal on Media Management, Vol. 6, No. 3&4, 2004., http://www.mediajournal.org/modules/pub/view.php/mediajournal-197, [07/25/2008]
Full text download:	http://www.leaonline.com/doi/pdf/10.1207/s14241250ijmm0603%264_4

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