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PPT : The Transition to Digital Television

Content Inside :

Talk Plan
* Digital television
* Business and public policy problem
* Model
* Data and results
* Effects of policies on viewers’ incentives

From Analogue to Digital TV
TV platforms: terrestrial, cable, satellite, broadband TV
Benefits: digital compression technology allows more efficient use of bandwidth, by a factor of 6
Costs: investment in transmission equipment by broadcasters and in reception equipment by viewers

Benefits and costs
* are unevenly distributed among players
* vary across platforms

Digital TV, EU Penetration
Coordination Problem
* Viewers’ incentives to migrate from analogue depend on:
o benefits from additional digital channels
o cost of digital reception equipment (‘set top box’ = STB or integrated television sets & aerial upgrade)
* Broadcasters make channels available on digital platform if there are many digital viewers
* Manufacturers and retailers offer cheap digital equipment if many viewers demand it

Public Good Problem
Broadcasting transmission is a ‘public good’: if one viewer is reached, all viewers are also reached at no additional cost [‘non rivalry’]

So, bandwidth (satellite transponder space, terrestrial spectrum) can be freed up only if all analogue viewers have migrated to digital UK: Digitisation of Platforms
50%
BSkyB digitised satellite platform in 3 years
Cable 2/3 digitised
Digital Terrestrial (DTT) is progressing… Business Policy

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PPT : The Transition to Digital Television Category : Television
Source : www.kellogg.northwestern.edu
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Language : English
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