The ABCs of Pick-and-Pay

Thu Jun 26 15:50:55 EDT 2014
By Dr. Jeffrey A. Eisenach

Currently, the Canadian Radio-television and Telecommunications Commission (CRTC) is considering new regulations that could impose a pick-and-pay mandate on content providers and distributors. While such a mandate would certainly be intended to make consumers better off, its actual effects could very well be to seriously disrupt the broadcast distribution business, harm the digital video ecosystem, and reduce overall consumer welfare.

This analysis is intended to inform the CRTC's deliberations by explaining the relevant economic theories, presenting the results of relevant research, and assessing the likely effects of the proposed policy changes on the markets for video content and delivery.