Journal of Economic Theory and Econometrics: Journal of the Korean Econometric Society
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Journal of Economic Theory and Econometrics
JETEM/계량경제학보/計量經濟學報/JKES
Journal of the Korean Econometric Society

Microeconomic Effects of the Multichannel Service of Terrestrial Broadcasting

Vol.18, No.2, June , 1–60


English Version |  Korean Version
  •   (Department of Economics, Chung-Ang University)

  •   (Division of Economics, Inha University)

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Abstract  

One of the biggest issues in the current Korean broadcasting industry is digital transition. Terrestrial broadcasters currently send both digital and analog signals to the public. But the government plans to switch off the analog signals and send only the digital ones in a few years. However, the penetration rate of the digital TVs or the digital set-top boxes are very low in Korea, hindering digital transition. So the government and the terrestrial broadcasters takes the introduction of multichannel services to the terrestrial broadcasting into serious consideration. By using a theoretical model, we examine the effects of the multichannel services on the platform competition between the terrestrial broadcasting and the cable TV services, the digital TV sales, and the social welfare.


Keywords
   Digital TV, Terrestrial Broadcasting, Multichannel Services, Cable TV Services, Set-top Box for Terrestrial Broadcasting

JEL classification codes
   D4, L1
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