DEMAND PULL AND SUPPLY PUSH IN PORTUGUESE CABLE TELEVISION

Abstract

In this paper a Vector Autoregressive Model is applied to the most representative Portuguese cable television operators, in order to obtain a dynamic analysis of the interactivity established between the supply and the demand of network services, through the strategy of vertical integration of services. The results reveal the existence of two driving forces in the Portuguese main cable networks, on the one hand, the supply push which contributes to the enhancement of the basic cable demand, and on the other hand, the demand pull which intensifies the introduction of new vertically integrated services. In the two case studies, it is also detected that vertical integration of services has a negative impact on the price of the basic cable television service.Cable Television, Vector Autoregressive Model, Cointegration.