The network effect in the TV broadcasting industry results in
A) a positive market feedback between the number of advertisers and the size of TV audience.
B) a negative market feedback between the number of advertisers and the size of TV audience.
C) a positive market feedback between the number of advertisers and the number of TV channels.
D) a negative market feedback between the number of advertisers and the number of TV channels.

Question

Quizplus · Accepted Answer

The network effect in the TV broadcasting industry refers to the positive feedback loop between the number of advertisers and the size of TV audience. As more advertisers invest in TV advertising, the more money is available for TV programming, which in turn attracts more viewers. The larger the audience, the more valuable the advertising space becomes, leading to even more advertisers wanting to invest in TV advertising. This creates a virtuous cycle that benefits both advertisers and broadcasters.

The Network Effect in the TV Broadcasting Industry Results in