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September 2005 (Blackwell Publishing)
Article
Public service broadcasting
Type: Journal Articles
Authors: Mark Armstrong
ISSN: Print: 0143-5671 Online: 1475-5890
Volume, issue, pages: Vol. 26, No. 3, pp. 281-299
JEL classification: D62, L15, L33, L82

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This essay discusses the merits of public intervention in the provision of television broadcasting services. I argue that intervention was justified in the past, when there were just a few channels and when advertising was the sole source of commercial funds. However, the advent of subscription television overcomes many of the market failures that once existed. Moreover, asymmetric treatment of broadcasters acts to distort the incentives of commercial broadcasters. Finally, viewers have an increasing ability to avoid unappealing, but perhaps socially desirable, content, which further weakens the case for public intervention in the market.

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