Pay-per-view broadcasting of outstanding events: consequences of a ban

A regulatory ban on pay-per-view broadcasting of certain outstanding events has recently been implemented in the EU. This paper analyses the consequen ces of such a ban when the alternative is financing the events purely by TV commercials. The result on total surplus is ambiguous and, hence, does not by itself justify a ban. However, a ban always increases consumer surplus and reduces the proceeds to the owner of the broadcasting rights. This is c onsistent with the motivation for the ban given in the EU Directive, which focuses on the welfare of the viewers. (C) 2001 Elsevier Science B.V. All r ights reserved.