ERIC Number: ED173878
Record Type: RIE
Publication Date: 1978-Dec
Television and Competition.
Noll, Roger G.
The television industry is characterized by numerous imperfections in market competition. The spectrum allocation policy of the Federal Communications Commission (FCC) assures that there will be only three national television networks; consequently in nearly all markets these stations account for 75% to 100% of revenues. These networks in turn control the most lucrative prime-time outlets for programing, thereby accounting for most of the sales of program producers and for more than half of television advertising sales. The economic and political position of the network is enhanced by the network-owned affiliates located in markets serving more than 20% of the nation's population. The uniqueness of television advertising and the tight oligopoly in television creates increased market concentration in various consumer industries that find television advertising particularly powerful. Competition in time is important in determining viewer satisfaction, the impact of a particular advertising or cultural message, and economic rents demanded by especially popular programs. Possible remedies for imperfect competition include increasing the number of networks, relaxing cable television regulations, limiting networks' access to prime-time programing, and undertaking antitrust action against the three major networks. (DF)
Publication Type: Speeches/Meeting Papers; Opinion Papers
Education Level: N/A
Authoring Institution: California Inst. of Tech., Pasadena.
Note: Paper presented at the Federal Trade Commission Symposium (Washington, D.C., December 14-15, 1978)