Broadcasting forever

  • Authors:
  • Eitan Altman;Moshe Haviv

  • Affiliations:
  • INRIA, Sophia-Antipolis Cedex, France;Department of Statistics, The Hebrew University of Jerusalem, Jerusalem, Israel

  • Venue:
  • GameNets'09 Proceedings of the First ICST international conference on Game Theory for Networks
  • Year:
  • 2009

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Abstract

In a pay-per-view scheme, a service provider multicasts the program for which it has the rights on demand only to those who have paid for it. However, once payments are made it is tempting to broadcast the program to all. This occurs both in order to increase advertising revenues (due to a higher rating) and due to the extra costs associated with multicasting in comparison with broadcasting. Of course, this can be done only once as reputation will then be lost. We describe a pricing mechanism which results in broadcasting while still causing those willing to pay, to do so and at the monopoly price.