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  3. American Economic Review
  4. August 2016
  5. Effects of Deregulation and Consolidation of the Broadcast Television Industry

Effects of Deregulation and Consolidation of the Broadcast Television Industry

  • Jessica Calfee Stahl
American Economic Review
vol. 106, no. 8, August 2016
(pp. 2185-2218)
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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.20110948

Additional 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