ERIC Number: ED203335
Record Type: Non-Journal
Publication Date: 1981-Aug
Reference Count: N/A
The Effects of Market Structure on Television News Pricing.
Wirth, Michael O.; Wollert, James A.
Multiple regression techniques were used to examine the business side of local television news operations for November 1978. Research questions examined the effect of several variables on local television news prices (advertising rates), including type of ownership, network affiliation/signal type, market size, cable network penetration, market concentration, and market prosperity. It was expected that higher levels of market concentration (making the market less competitive) should lead to higher news prices. Data for the study came from 297 commercial television stations in 105 television markets. The results conformed to theoretical expectations. Specifically, ownership type (group or cross media) had little effect on television news advertising prices; cable network penetration had a significant negative effect on such prices; and market concentration had a significant positive impact on price. The primary policy recommendations suggested by these results are that the Federal Communications Commission (FCC) should continue to pursue procompetitive policies that are most likely to increase the number of television channels from which consumers can choose; and that regulation of the commercial television industry with respect to the FCC's scheme of taxation by regulation (public interest program requirements) must be discontinued as competition is increased. (Author/RL)
Publication Type: Reports - Research; Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A