The effects of consumer switching costs on competition between direct broadcast satellite and cable
Kimbro, Clay William
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This study examines and measures the effects of switching costs as a barrier to DBS entering the market to compete with cable. The study finds switching costs exist and that switching costs don't deter new residents choosing a service for the first time from choosing a new competitor entering the market. The study also finds the Satellite Home Viewer Improvement Act of 1999 allows DBS and cable to become more substitutable products, which makes switching cost a more important factor in consumers' decisions to switch products.