nep-cul New Economics Papers
on Cultural Economics
Issue of 2012‒11‒03
two papers chosen by
Roberto Zanola
University Amedeo Avogadro

  1. Banning Ads from Prime-Time State TV: Lessons from France By Lapo Filistrucchi; Andrea Mangani; Luigi Luini
  2. Italian print magazines and subscription discounts By Andrea Mangani

  1. By: Lapo Filistrucchi (CentER and TILEC, Tilburg University and Department of Economics, University of Florence); Andrea Mangani (Department of Economics, University of Pisa); Luigi Luini (Department of Economics and Statistics, University of Siena)
    Abstract: We analyse the effects of the advertising ban on French public television, which came into effect on the 5th of January 2009. The ban forbids commercial advertising on public TV in the time slot 20.00-6.00. By using a difference-in-difference approach we show that advertising which was previously broadcasted on public TV in the time slot 20.00-6.00 did not switch to private channels in the same time slot (nor did the price per second in that time slot on private channels rise). Rather advertising partly switched to public TV in the time slot 6.00-20.00. The trend away from aerial towards non-aerial TV channels continued but was not increased. The common expectation that the ban would favour private TV channels at the expense of public ones was therefore wrong. Interestingly, the relative audience of public to private TV did not tilt in favour of public TV. This suggests that advertising aversion is not the driving parameter at work. More likely, for advertisers, viewers of public TV in the slot 6.00-20.00 are closer substitutes for viewers of public TV in the slot 20.00-6.00 than are viewers of private TV channels in the slot 20.00-6.00.
    Keywords: Keywords: two-sided markets, media, advertising regulation, television, public service broadcasting
    JEL: L82 D18
    Date: 2012–10
  2. By: Andrea Mangani
    Abstract: This paper studies the antecedents of subscription discounts of Italian print magazines. Drawing on previous empirical work on the theme, I formulate six research hypotheses regarding demand and supply factors that may affect subscription pricing. The two-sidedness of magazine industry is considered implicitly in the empirical analysis. The empirical observations show that the issue frequency, economies of scope deriving from publishing multiple titles, intra-category competition and content devoted to “hard” news are positively linked with subscription discounts. Circulation and returns do not present any evident link with subscription discounts, while the share of subscriptions on total sales does.
    Keywords: Media markets, price discrimination, quantity discounts,magazines.
    JEL: D4 L2 L82 M2
    Date: 2011–01–11

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