TR10b - Oligopole (4 ème partie)

Transcription

Monopoly Practices and Competitive
Behaviour in the French Satellite
Pay--TV Market
Pay
Michele Cincera and Abdul G. Noury
CEPR Discussion Paper #4174
Université Libre de Bruxelles
Motivations

As a result of technological progress in digital
broadcasting industry there is a substantial
decrease in prices and/or increase in quality of
pay--TV services.
pay
To what extent such changes can be attributed
to competition?
To answer this question we compare the French
competitive (pay(pay-TV) market with the British
monopolistic (pay(pay-TV) industry.
Before the comparison we analyse the nature of
interactions between (rival) firms in the French
pay--TV market.
pay
1
Why France?

The French SPTV market was
characterized by a monopoly till 1997 but
since then there are three firms competing
together.
Availability of monthly data that “allows”
structural econometric estimations.
The French competitive
p
situation can be
compared with the British or Italian
monopolistic cases.
Related literature

Theory

Armstrong (1999)
Harbord and Ottaviani (2002)
Nilssen and Sorgard (2000)
Anderson and Coate (2002)
Spence and Owen (1977)
Empirical
p

Waterman and Weiss (1996)
Chipty (2001)
Golsbee and Petrin (2004)
2
Relevant market
Satellite Pay
Pay--TV market vs. Cable TV,
Terrestrial (or AirAir-to
to--Air TV) and ADSL.
EU Antitrust
Antitr st authorities
a thorities have
ha e identified the
Pay TV market as a separate one from the
free access TV market.
Barabes and Encaoua (2002): same
conclusion for France.
Subscription
p
rates in 2002 in France: 35% for
Cable Pay TV vs. 65% for Satellite Pay TV.

Data

Monthly data collected from TeleSatellite
magazine.
g
Variables:

Micro: net subscription prices, number of subscribers,
advertising effort, number of channels, and
Macroeconomic variables affecting demand:
industrial production index, the number of
unemployed,
nemplo ed and seasonal d
dummies.
mmies
Limits and advantages of the data.
3
15
CS
AB Sports
Allociné TV
Auto Moto
BBC World
Bonjour.fr
C:
Canal Club
Canal Festival Dauville
Canalsat Boutique
Canalsat Finances
CTV
Fashion TV
Fiches Elle
Forum Boutiques (Boutiques Spectacle)
Forum Planète
France courses
Free One
I.Sport
Journal de chez vous
MCM 2
MCM Africa
Nostalgie la Télé
Parents
Pathé Sport
Première
RTPI
Santé
Spectacle
TV Festival
TVPI
Zaléa TV
Zik
Zoé
123sat.tv
13e Rue
AB 1
AB Moteurs
Alegria
Banques
Bloomberg TV France
Boutiques
Canal Jimmy
Canal J
Canalsat Jeux
Cartoon Network
Cash TV
Cinécinéma Info
Club Téléachat
M6 Boutique
CNBC-NBC
Comédie
Cuisine.TV
Demain!
Equidia
ESPN Classic Sport
Euronews
Eurosport France
Eurosport Interactive
Extreme Sports Channel
Festival
Fox Kids
France 2
France 3
Game one
Gourmet TV
Histoire
Itélévision
La chaîne météo
LCI
L'équipe TV
Live 1
Ma Planète
catégorie
sport
généraliste
service
information
service
divertissement
téléachat
généraliste
téléachat
service
service
art de vivre
art de vivre
téléachat
art de vivre
service
généraliste
service
service
musique
musique
musique
service
sport
service
généraliste
art de vivre
téléachat
généraliste
art de vivre
généraliste
musique
service
musique
fiction
fiction
sport
art de vivre
services interactifs
information
téléachat
jeunesse
jeunesse
divertissement
jeunesse
divertissement
services
téléachat
téléachat
information
fiction
art de vivre
service
sport
sport
information
sport
services interactifs
sport
généraliste
jeunesse
généraliste
généraliste
divertissement
art de vivre
documentaire
information
service
information
sport
musique
documentaire
25
34
52
60
J-97 J-98 J-00 J-01 J-04
0
0
0
0
0
1
0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
0
0
0
0
1
0
1
0
0
0
0
0
0
0
0
0
0
0
1
0
1
1
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
0
0
0
0
0
1
1
0
0
0
1
0
0
0
0
1
0
0
0
0
1
0
0
0
1
1
0
0
0
0
0
1
0
0
0
1
0
1
0
0
0
0
0
0
1
0
0
0
0
1
0
1
1
1
0
0
0
0
0
0
1
0
1
0
0
1
1
0
0
0
1
0
0
0
0
0
0
1
1
0
0
0
0
0
0
1
0
0
0
0
0
0
1
0
0
1
1
0
0
0
1
0
1
0
0
1
0
0
0
0
0
0
0
0
0
0
1
1
0
0
0
1
0
1
1
1
1
0
0
0
0
1
1
0
1
1
0
1
1
0
0
0
1
0
0
0
0
0
1
1
1
1
0
0
0
1
1
1
0
0
1
0
0
1
1
0
1
1
1
0
0
1
1
0
1
0
1
1
1
0
1
0
0
0
0
0
1
0
1
1
0
0
0
1
0
1
1
1
1
0
0
1
0
1
1
0
1
1
0
1
1
0
0
0
1
1
1
1
0
0
1
1
1
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
1
1
1
0
1
1
1
1
1
1
1
0
1
1
0
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
21
TPS
BBC World
BBC Prime
Boomerang
Escales
Eurêka
ESPN Classic Sport
Eurosport France
Eurosport News
Festival
Fun TV
Gourmet TV
Histoire
Infosport
I Télévision
LCI
Mezzo
M6 Music
MTV
Odyssée
Paris Première
Piwi
Régions
RFO Sat
RTL 9
Série Club
Télétoon
Télétoon +1
Téva
Tfou
TF6
TV5
TF1
France 2
France 3
La Chaîne Parlementaire
La Cinquième
Arte
M6
AB Moteurs
Ciné info
Club Téléachat
M6 Boutique
CNBC Europe
CNN International
Equidia
Game one
KTO
TFJ
TV Breizh
Annonces et Shopping
Astrologie (Equilibre)
Bandiagara
Espace annonces
Fi (CATV/Vega/Echos)
Info Express
Le journal de chez vous
Météo Express
Pari à domicile
TPS Hors Série
TPS Mail
Alegria
RTM
TV7
Chronobourse
La Chaîne Sud
Canal Auto
Superfoot
VH-1
knowledge TV
France Supervision
Eurosport Breizh
France courses
25
37
45
50
J-97 J-98 J-00 J-01 J-04
information
généraliste
jeunesse
art de vivre
jeunesse
sport
sport
sport
généraliste
musique
art de vivre
documentaire
sport
information
information
musique
musique
musique
documentaire
généraliste
jeunesse
généraliste
généraliste
généraliste
fiction
jeunesse
jeunesse
art de vivre
jeunesse
généraliste
généraliste
généraliste
généraliste
généraliste
information
généraliste
généraliste
généraliste
sport
services
téléachat
téléachat
information
information
sport
divertissement
généraliste
généraliste
généraliste
téléachat
service
divertissement
service
service
service
service
service
service
généraliste
service
art de vivre
généraliste
généraliste
service
généraliste
service
sport
musique
documentaire
généraliste
sport
service
0
0
0
0
0
0
1
0
1
1
0
0
0
0
1
0
0
0
1
0
0
0
0
1
1
1
0
1
0
0
1
1
1
1
0
1
1
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
0
1
0
1
0
0
0
1
0
1
1
1
0
0
0
0
1
0
1
1
0
1
0
0
1
0
0
0
1
0
0
0
0
1
1
1
0
1
0
0
1
1
1
1
0
1
1
1
0
0
0
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
0
0
0
1
0
1
0
1
0
1
1
1
0
1
0
0
1
0
1
1
0
1
1
0
1
1
1
1
1
0
0
1
1
1
1
1
0
1
0
0
1
1
1
1
0
1
1
1
1
0
1
0
0
0
1
0
0
0
0
0
0
1
1
1
1
0
1
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
1
1
0
1
0
0
1
0
1
1
0
1
1
1
1
1
1
1
1
1
0
1
1
1
1
1
0
1
0
1
1
1
1
1
1
1
1
1
1
0
1
0
0
1
1
1
0
0
1
0
0
1
1
1
1
1
1
1
1
1
0
0
0
0
0
0
0
0
0
0
0
0
0
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
0
1
1
1
1
1
1
1
1
0
1
1
1
1
1
1
1
1
1
1
0
1
1
1
1
1
0
1
0
0
1
0
1
1
0
1
1
0
1
0
0
0
0
0
0
0
0
0
0
0
0
Market shares
CanalSatellite
1993
1994
1995
1996
1997
1998
1999
2000
Number of
Subs.
Market
share
0.1
0.21
0.3
0.45
0.78
1.1
1.37
1.62
100%
100%
100%
100%
70.90%
64.30%
62.30%
61.80%
TPS
TOTAL
Number of Market
Subs.
share
Number
of Subs.
0.32
0.61
0.83
1
29.09%
35.67%
37.73%
38.17%
0.1
0.21
0.3
0.45
1.12
1.71
2.2
2.62
4
3,500,000
Série1
Série2
3,000,000
2 500 000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
1
4
7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97
70
60
Number of channels
50
40
30
20
10
D
ec
-9
M 6
ar
-9
Ju 7
n9
Se 7
p9
D 7
ec
-9
M 7
ar
-9
Ju 8
n9
Se 8
p9
D 8
ec
-9
M 8
ar
-9
Ju 9
n9
Se 9
p9
D 9
ec
-9
M 9
ar
-0
Ju 0
n0
Se 0
p0
D 0
ec
-0
M 0
ar
-0
Ju 1
n0
Se 1
p0
D 1
ec
-0
M 1
ar
-0
Ju 2
n0
Se 2
p0
D 2
ec
-0
M 2
ar
-0
Ju 3
n0
Se 3
p0
D 3
ec
-0
M 3
ar
-0
Ju 4
n04
0
CanalSatellite
TelevisionParSatellite
5
Descriptive statistics
Variable
net annual subscription price (euros)
p1
p2
# of subscribers
q1
q2
advertising
a1
a2
total # of channels
nt1
nt2
total # of channels in the basic bundle nb1
nb2
total # of channels in the movie bundle nc1
nc2
total # of bundles
o1
o2
industrial production index (OECD)
y
Mean
288.13
269.38
1212789
726392
1069
810
73.68
49.36
37.83
40
6 53
6.53
3.76
9.25
7.49
112.59
Std. error
29.12
37.05
508735
361634
268
268
19.8
10.3
14
9.53
1 51
1.51
0.78
1
2.12
4.72
Min
228.67
158.55
200000
0
447
0
29
16
15
21
5
3
5
2
101.3
Max
334.78
300.02
2000000
1172000
1414
1083
108
59
56
52
11
5
11
11
118.3
1 = CS
2 = TPS
Methodology (Gasmi et al. 1992)

Demand equation:

Cost equation:

Profit:
6
System of 4 equations
(2 demand equations +
2 first order conditions)
to be estimated (by 3SLS):
Strategic behaviour

Competitive (Nash) model

Stackelberg with CanalSatellite as leader

Stackelberg with TPS as leader
Collusion on Price

7
Results
Vuong Test

Vuong (1989) developed a test for nonnested
models It is based on LR corrected for the
models.
number of estimated parameters.
The test statistic is ass. normal under the null
hypothesis (i.e. both models are equivalent).
M1
M2
M3
M2
3.98
M3
5.12
2.11
M4
2.57
-0.27
-2.44
8
Comparison with the British Case

Note the preliminary and static aspects of
comparison.
Is this result still valid across periods and/or
space?
BskyB (UK)
CS (FR)
TPS (FR)
min
Max min
Max min
Max
Premium Movies
0 12
0 11
0
7
Premium Kids
0
4
0
9
0
3
Premum Sports
0
4
0
7
0
7
Price (EUR)
17 54
17 35
17 33
Conclusions

Given the sample size, and assumption on functional
forms, care must be taken when interpreting our results.
Our structural estimations produces similar results for
four competitive behaviours.
Vuong test suggests that the data can best be explained
by Stackelberg model with CanalSatellite as leader.
A comparison with the British [and Italian case] show
that despite similarities, packages of paypay-TV services
are cheaper in France.
But, one needs more precise methods (hedonic
regression) to reach firm conclusion on cross country
comparisons.
9
10

TR10b - Oligopole (4 ème partie)

Transcription

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