In this essay we propose a model capturing the major components of the interaction existing between the advertising and audience markets. Our main objective consists in analysing how the linkage between these markets shapes the TV-programs selected at equilibrium, when these programs follow from oligopolistic competition in the TV-broadcasting sector. This analysis is de- veloped in the framework of a three-stage sequential game involving two com- panies, their TV-viewers and the advertising agencies buying ad-spots to be inserted in their programs. The players of the game are the TV-channels. A program consists of a mixof two characteristics in varying proportions. .
