American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Effects of Deregulation and Consolidation of the Broadcast Television Industry
American Economic Review
(pp. 2185–2218)
Abstract
This paper exploits deregulation in the 1990s to estimate viewership and revenue effects of consolidation in broadcast television, then finds cost effects that explain the ownership structure given viewership and revenue effects. Results suggest that consolidation greatly increased profitability in an industry with otherwise declining profitability. Groups with broader national coverage attract more advertising per station. Joint ownership of two stations within a market and network ownership both allow for significant cost savings. There is some evidence that within-market consolidation allows stations to achieve local market power. However, both within-market and across-market consolidation appear to have boosted viewership, on net.Citation
Stahl, Jessica Calfee. 2016. "Effects of Deregulation and Consolidation of the Broadcast Television Industry." American Economic Review 106 (8): 2185–2218. DOI: 10.1257/aer.20110948Additional Materials
JEL Classification
- G32 Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- L13 Oligopoly and Other Imperfect Markets
- L25 Firm Performance: Size, Diversification, and Scope
- L51 Economics of Regulation
- L82 Entertainment; Media
- L88 Industry Studies: Services: Government Policy