Local Spanish TV markets cater to individual cities by producing local content. This content can be produced

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Local Spanish TV markets cater to individual cities by producing local content. This content can be produced in-house by a network or they can also purchase rights to third-party produced content. Recently, Spanish cities have erected barriers to entry in television content production that allows content producers more market power. How would this have affected vertical integration between content providers and TV networks?

a. There is more vertical integration to limit arbitrage by price discriminating content producers.

b. There is less vertical integration because point-of-sale services are less important.

c. There is more vertical integration to reduce the double marginalization problem.

d. There is less vertical integration because evading regulation is less important.

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Managerial Economics

ISBN: 9781337106665

5th Edition

Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward

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