TV-marknaden för sändningsrättigheter kopplade till sportevenemang

Background: Sporting events conveyed by the TV medium affect people and can give many unforgettable experiences. Sport may be synonymous with excitement and drama or just serve as entertainment. Through TV broadcasts from different sporting events, millions of televiewers all over the world have enjoyed athletic feats of extreme top class. TV broadcast sport always attracts a great number of viewers, also in Sweden. The prices of broadcasting rights to sporting events have risen strongly during the last decade, much as a consequence of the increasing competition between different TV companies both internationally and in Sweden. The development of prices is also a result of the monopoly situation which exists in the sales link of broadcasting rights, where the sport organizations and the companies holding the original rights, have learnt to make the most of their market power. Purpose: The purpose of this paper is to analyse the TV market concerning the broadcasting rights to sporting events. This is done starting from Robert Axelrod's theory of co-operation. The thesis is that different TV companies, through an implicit kind of co-operation, could be able to counteract the monopoly situation, which exists in the retail link of broadcasting rights. This might be done in a way that lowers the price of the rights to a level closer to the marginal cost. Method: The basis of this paper is mainly Robert Axelrod's theory of co- operation, used in a qualitative study starting from a scientific hermeneutic point of view. The frame of reference is built on an already existing theory applied on a problem, which gives the paper a deductive character. The material has been gathered from literature, newspapers and the Internet completed with interviews with representatives of the studied TV channels on the Swedish market. Results: The results show that it can be rational for TV channels to co-operate concerning the broadcasting rights of sporting events. An absolute condition for achieving a mutual co-operation is that the discount rate is high enough and that the parties can put aside any possible jealousy. But there are problems if the parties value their own rights considerably less than those of their competitors. If they exploit the opponent and he answers by making a counter defection, the counter defection will not seem deterrent. This makes it more difficult to achieve a mutual co-operation. It is difficult to give a verdict on the opportunities of co-operation on the Swedish market, as we do not know exactly how the parties value the different rights. Listing the rights gives a negative influence on the possibilities of achieving a mutual co-operation between certain TV channels, because it destroys the possibilities of certain channels to retaliate. At the same time the possibility of mutual co-operation increases between the channels which are not involved in the restrictions. This happens because the parties are fewer and it leads to an increased degree of interaction. If co-operation is achieved the prices of the broadcasting rights can be cut down which would reduce the deadweight loss which arises as a result of the monopoly situation in the sales link.

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