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Financing of media firms : does competition matter?

Kind, Hans Jarle; Nilssen, Tore; Sørgard, Lars
Working paper
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URI
http://hdl.handle.net/11250/162746
Date
2005-01
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  • Discussion papers (SAM) [578]
Abstract
This paper analyses how competition between media firms influences

the way they are financed. In a setting where monopoly media firms choose to

be completely financed by consumer payments, competition may lead the media

firms to be financed by advertising as well. The closer substitutes the media firms’

products are, the less they rely on consumer payment and the more they rely on

advertising revenues. If media firms can invest in programming, they invest more the less differentiated the media products are perceived to be.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2005:2

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