1. Regulatory Analysis and the Video Franchising Debate Jerry Brito and Jerry Ellig Senior Research Fellows

18. Total wealth transfers $8.4 billion 67.4 million N.A. Total all markets $96 million 3.4 million $2.33 + Franchise fees $16 million 3.4 million $0.39 Nonprice concessions Markets with wireline competition $8.3 billion 22.5 million (digital) $5.00 (digital) + Market Power - Digital $8.2 billion 64 million $9.83 + Franchise fees $5.8 billion 64 million $7.56 + Nonprice concessions $5.5 billion 64 million $7.10 Market Power – Basic, extended, equipment Markets without wireline competition Wealth Transfer Subscribers Monthly Price Change Effect

20. Total cost to consumers $10.4 billion $8.4 billion $2 billion 28.1 million Total all markets $102 million $96 million $5.8 million 413,000 + Franchise fees $16.2 million $16 million $160,000 69,000 Nonprice concessions Markets with wireline competition $10.3 billion $8.3 billion $2 billion 4.8 (channels) +Quality effect $10 billion $8.3 billion $1.6 billion N.A. + Market Power – Digital $9.8 billion $8.2 billion $1.6 billion 28 million + Franchise fees $6.8 billion $5.8 billion $964 million 21 million + Nonprice concessions $6.3 billion $5.5 billion $850 million 20 million Market Power – Basic, extended, equipment Markets without wireline competition Total consumer cost Wealth Transfer Forgone consumer surplus ∆ in no. of subscribers Effect

22. Sensitivity Analysis $10.43 billion $8.48 billion $1.95 billion 30.1 million 11.5 percent price effect All MVPD subscribers $9.53 billion $7.62 billion $1.91 billion 32.1 million 11.5 percent price effect Mutatis mutandis $10.87 billion $8.42 billion $2.45 billion 35.1 million Elasticity = -2.5 $9.99 billion $8.42 billion $1.58 billion 21.1 million Elasticity = -1.5 Change in assumption $10.43 billion $8.42 billion $2.01 billion 28.1 million Baseline Total consumer cost Wealth Transfer Forgone consumer surplus ∆ in # of subscribers