Competition in the pay-TV market

This paper discusses competition in the emerging pay-TV market. Economic fe atures of the industry are described, and the current state of the market i n the UK is summarized. Two simple formal models of the industry are analyz ed: First the danger of two vertically integrated pay-TV networks entering into collusive agreements to exchange programming with each other is discus sed; second, the private and social incentives for signing exclusive contra cts for premium programming are analyzed. (C) 1999 Academic Press Journal o f Economic Literature Classification Numbers: D43, L13, L41, L82.