Video Economics / Edition 1

by Bruce M. Owen, Steven Wildman

Overview

Between the late 1970s and the early 1990s the U.S. television industry transformed from a heavily regulated business to a highly competitive one, with new networks, technologies, and markets. Video Economics addresses the major issues affecting competitive advantage in the industry, including sequential program release strategies known as windowing, competition among program producers, the economics of networking, cable television, scheduling strategies, and high definition television (HDTV). The authors present the economic tools required to analyze the industry as they take up each new topic. This book will be of particular interest to students of the mass media, communication policy officials, communication lawyers and consultants, and media and advertising executives.

Product Details

ISBN-13:	9780674937161
Publisher:	Harvard University Press
Publication date:	04/01/1992
Edition description:	New Edition
Pages:	384
Product dimensions:	6.12(w) x 9.25(h) x 1.00(d)

About the Author

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.

Table of Contents

• 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

Editorial Reviews

Video Economics is an ambitious book, and overall, I rate it to be a significant contribution to the literature and a good resource for students.

Journal of Communication - David Waterman

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.

Back Stage Shoot - George L. George

Video Economics is aimed at those for whom a fundamental understanding of the economics of the video industry is essential to their success in the industry: broadcasting, communication, journalism, cinema, and business students; advertising and media executives; and public policy makers. This book draws on its authors’ backgrounds as academics, government officials, and consultants. Their wide-ranging experiences significantly enrich the ‘real world’ content of the work… The book is commendable for the depth that it provides, [and it] also is steeped with interesting facts and insights.

Journal of Economic Literature - Mark Zupan

Writing as economists, the authors argue for a video marketplace that is not only competitive, but offers the greatest potential for freedom of expression and a diverse exchange of ideas.

Journalism Quarterly - Alan B. Albarran

Writing as economists, the authors argue for a video marketplace that is not only competitive, but offers the greatest potential for freedom of expression and a diverse exchange of ideas.
— Alan B. Albarran

Journalism Quarterly

Video Economics is an ambitious book, and overall, I rate it to be a significant contribution to the literature and a good resource for students.
— David Waterman

Journal of Communication

Video Economics is aimed at those for whom a fundamental understanding of the economics of the video industry is essential to their success in the industry: broadcasting, communication, journalism, cinema, and business students; advertising and media executives; and public policy makers. This book draws on its authors' backgrounds as academics, government officials, and consultants. Their wide-ranging experiences significantly enrich the 'real world' content of the work...The book is commendable for the depth that it provides, [and it] also is steeped with interesting facts and insights.
— Mark Zupan

Journal of Economic Literature

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.
— George L. George

Back Stage Shoot