Empirical Economic Analysis on Terrestrial Broadcasting Industry: A Survey

In this paper, we will survey recent papers on empirical economic analysis with respect to terrestrial broadcasting industry. There are four related markets; (a) contents, (b) advertiser's goods, (c) TV (or radio) advertisement, (d) program supply. Here, we focus on two markets, (c) and (d). When we analyze determinants of profit in terrestrial broadcasting industry, we must pay attention to two characteristics; (i) oligopoly structure in each market, (ii) cost-saving advantage by network affiliation. After making a brief survey, we present re-estimation result of our econometric model considering these two points. In the short run, program scheduling can be more important strategic parameter. We show this kind of analysis has been developed in the field of business administration as well as economics. Further, we introduce empirical papers on Pay-TV (including cable television, communication satellite etc.) and public broadcasting, and point out that we must also consider adequate division of roles between them