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Item Restricted A hedonic analysis of the pricing in the Philippine cable television industry(2004-03) Intal, Ma. Carla Angela P.; Paderanga, Goering George A.; Quimbo, StellaThis paper attempted to determine the willingness to pay by consumers for the cable programming offered to them by modified hedonic estimation techniques. Since the traditional hedonic model, which assumes perfect competition, is not appropriate in the monopolistic cable television market, an alternative model was estimated to account for the stratified demand characteristics and the different market structure of the Philippine Cable TV market. With the modified hedonic equation, the marginal willingness to pay by consumers for specific attributes as well as possible bases for mark-ups are revealed by the regression coefficients. The results of the study show that the consumers value quality over quantity in cable TV programming. The number of networks offered on a cable system is valued negatively while the content-sports and news channels-are valued at positive prices as consumers value programming which are significantly different from what is available on free TV. Evidence of second-degree price discrimination by the cable monopolist exists, as consumers are shown to be more willing to pay for a basic package knowing that he can eventually upgrade to a higher bundle as compared to another basic package with no option to upgrade. Therefore, the National Telecommunications Commission should closely monitor the operations of the cable system operators. Issues such as cable TV piracy and misdeclarations of subscriber bases tend to put legitimate cable operators on the losing end, and these must be properly monitored and safeguarded by the NTC in order to equal the playing field of the cable TV industry as it continues to be an important player in today's global economy.