Are Broadcast Sporting Events of “General Interest”? A Regional Panel Data Analysis of TV Ratings for Spain's La Liga

In 1997, a law was passed in Spain that mandated that “broadcastings of general interest” be free-to-air rather than pay-per-view. Since that time, a soccer match of the Spanish First Division—considered a public benefit activity—can be viewed on a weekly basis for free throughout the regular season. The aim of this article is to determine whether a “general interest” for these free-to-air broadcastings exists. To perform the empirical analysis, a demand equation for a TV audience is estimated using a unique panel data set on a regional level, in which the dependent variable is the number of viewers of free-to-air matches in each Spanish region during the period 2008–2012. The model specifications consider whether a particular region has a team competing in the First Division and other socioeconomical and sporting variables. The results conclude that a nationwide “general interest” in free-to-air broadcasting of soccer matches, which would support Spanish law, does not exist, with the exception of matches played by Real Madrid Club de Fútbol, Fútbol Club Barcelona, and local teams.