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HDTV in Germany: Lack of Innovation Management Leads to Market Failure

DIW Weekly Report 28 / 2010, S. 215-222

Georg Erber, Sven Heitzler

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High definition television may now be poised for a breakthrough in Germany. Unfortunately, in the area of private free-TV, broadcasters and network operators are still blocking each other. Market participants hope to leverage encryption and digital rights management as sources of long-term profits. This, however, may come at the expense of television viewers. Despite the start of regular HDTV operations by public broadcasters, only a few consumers are currently in a position to actually receive high definition television. The government should facilitate a rapid resolution to the current standoff and ensure effective monitoring of competition by implementing new standards.

JEL-Classification: L15;L51;L82
Keywords: HDTV, Innovation Management, Tragedy of the Anti-Commons
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