An empirical analysis of viewer demand for U.S. programming and the effect of Canadian broadcasting regulations

Using viewer share and rating points for the Toronto|Hamilton television market, we estimate the demand for U.S. programs retransmitted in Canada and test several hypotheses on the effect of domestic content regulation, program type, simulcasting regulations, network affiliation, and other broadcasting variables on audience size. These estimates have general implications for the current trade debate over the cultural industries. More specifically, our results provide support for some U.S. rights holders arguing for greater compensation for the retransmission of programs in Canada, and they raise questions about the publicly stated rationale of domestic content quotas generating net social benefits. These results can generalize to the many European Union and English-speaking countries using similar domestic content quotas.