(Person) Percentage - Sabanci University Research Database

The Asian Media & Mass Communication Conference 2010 Osaka, Japan
companies and channel operators to solve the shortage of programs, provide a safe
purchasing environment for clients, and be the purchasing role base on their large
amount of purchase programs.
Terrestrial TV stations and cable TV operators
The current situation of Taiwan's TV industry is that the space of channels are
too much, so there are a large number of programs to be placed in each period time.
When the cost of self-made programs is higher than the cost of outsourcing programs,
purchasing foreign programs become one way to compete with the other competitors.
TV stations skip agent broker and purchase foreign copyright programs directly that is
another way for foreign programs enter the Taiwan market. Thus, we learn that
terrestrial television stations will purchase foreign copyright programs base on the
costs, and try to buy a small amount of foreign copyright programs, and some of the
cable channels specialize in foreign copyright program in the market.
Copyright trading under the asymmetric information
According to transaction cost theory, transaction existed some risks because of
human rationality and asymmetric information, the film and TV program copyright
trading is a trading activity with an lot of money. Therefore, it is the buyer that take
the greater risks in the transaction process. Our research found that the domestic
television stations will take the different considerations signing different safeguards to
separate risk when they purchase foreign TV programs. Their consideration before
trading include the rating of home country, the demand for local audiences, story
topics, cultural differences, cast, long-term purchasing experience, support of
advertisers. In order to provide safeguards to reduce risks in terms of trading, they
focus on the way of response to changes in the laws of the government's future
approach, and the way of uncertainty cost recovery.
Conclusion
we can know that domestic TV companies have their own considerations before
trading in the process of introducing Korean drama in Taiwan according to the data,
in addition to the audience's preferences, cultural, actors and other objective factors,
the other is the budget and the familiarity of corporate partners. However, these
considerations are caused by the limited rationality and information asymmetry from
transaction cost theory; a variety of different ways for buyers can let them be able to
avoid risks as much as possible from various ways to enable them to buy high PE
ratio commodities. At the same time, we also find that advertising plays an important
role in TV industry, because advertising revenue is one of the major income for
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