Abstract: |
Sports organizations, Hollywood studios and TV channels grant satellite and
cable networks exclusive rights to televise their matches, movies and media
contents. Exclusive distribution prevents viewers from watching attractive
programs, and reduces the TV-distributors incentives to compete in prices.
This paper demonstrates that exclusive distribution may also give providers of
contents incentives to invest in higher quality and, as a result, force
competitors to reduce their prices. Exclusive distribution may benefit all
viewers, including those who are excluded. |