An Empirical Analysis of the Impact of Broadband Access on the U.S. Multichannel Video Programming Distribution Market

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2016
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Haverford College. Department of Economics
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eng
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Abstract
Capital investments made by incumbent cable, telecommunications, and satellite firms—together, multichannel video programming distributors (MVPDs)—in broadband technologies over recent years have improved Internet connection availability and speed. Access to broadband download speeds of 25 Mbps or greater allow for online streaming of Ultra HD video programming, which is of comparable quality to traditional Pay TV content. Utilizing geo-spatial variation in broadband download speed access across the United States, I test the effects of broadband access at Ultra HD capable speeds on the penetration rates and subscriber growth rates of MVPD Pay TV providers. The analysis produces inconclusive results, finding there to be insufficient evidence that access to higher broadband speeds has a negative effect on MVPD penetration rates and subscriber growth rates. Noteworthy differentiation in generational preferences for Pay TV subscribership is evidenced, warranting the need for further empirical research on the substitutability of quality online video programming on traditional Pay TV.
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