4. Television Broadcasting

Question 1

What is the concept of “virtuous circles of profitability”?

Answer 1

It refers to a positive feedback loop where increased investment in programs leads to higher audience numbers, generating more revenue and higher profitability

Question 2

Explain economies of scope in television broadcasting

Answer 2

It refers to cost savings when producing multiple products/services together rather than separately (shared overheads, content reuse, diversification of output, portfolio management)

Question 3

Define non-excludable

Answer 3

The difficulty of excluding individuals from benefiting from a service

Question 4

Define non-exhaustible

Answer 4

It means that providing a service to one person doesn’t reduce the availability to others

Question 5

Define asymmetric information

Answer 5

When one party has more information than the other (broadcasters x viewers)

Question 6

Define externalities

Answer 6

Costs or benefits imposed on third parties due to producer/consumer actions (increase in societal problems, violence)

Question 7

Define merit good

Answer 7

One that the government believes should be provided beyond individuals would choose to consume (educational)

Question 8

What are the characteristic features of public ownership of broadcasting?

Answer 8

Public funding, focus on public service, regulation/oversight, and universal access (BBC)

Question 9

Explain vertical supply chain for television broadcasting

Answer 9

It refers to the flow of television content from production to consumption, involving production, packaging, distribution, conditional access, and consumer interface

Question 10

Explain the idea of the network system in television

Answer 10

It’s an arrangement where multiple local or regional TV/radio stations are interconnected, sharing programming schedules for mutual economic benefits (ITV network in UK)

Question 11

What is competitive duplication?

Answer 11

When broadcasters offer similar programs targeting the mass audience. Program choice models analyze program offerings based on viewer preferences and market dynamics

Question 12

What are the major issues related to the impact of new distribution technologies on television broadcasting?

Answer 12

Market structure shifts, emphasis on content production, viewer migration, impact on advertisers, direct viewer payments, consumer surplus, programming costs, and efficient allocation of public goods