Public Good vs. Club Good in TV Content

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Question:

Many television networks, like ABC and NBC, provide content free of charge to users through local television stations. This is an example of a _____. Those same television networks offer their content on demand through a subscription-based service via apps on digital devices like smartphones and tablets. This is an example of a _____.

common resource; private good

public good; common resource

private good; club good

public good; club good

Answer:

The correct answer is public good; club good.

In this context, the content provided free of charge through local television stations is considered a public good because it is available to everyone without direct payment. On the other hand, the subscription-based service offered by the networks through apps is a club good, as it requires payment for access and is provided to a specific group of