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- Title
Horizontal Concentration and Vertical Integration in the Cable Television Industry.
- Authors
Ford, George S.; Jackson, John D.
- Abstract
In the recent past, the cable industry has exhibited a pronounced tendency toward increased vertical integration and concentration of cable system ownership. As a result, the 1992 Cable Act proposed and the Federal Communications Commission implemented restrictions on such activity. Two antitrust concerns include the size of programming discounts offered to large multiple-system operators and price and carriage discrimination by vertically integrated programming networks. The empirical model in this paper attempts to systematically measure the effect of ownership concentration and vertical integration on the programming cost and price of cable operators. We find that concentration and integration lower the programming cost to cable systems affiliated with larger multiple-system operators. These discounts are partially passed along to consumers in the form of lower prices.
- Subjects
UNITED States; CABLE television laws; VERTICAL integration; CONSUMERS; TELEVISION broadcasting; UNITED States. Federal Communications Commission
- Publication
Review of Industrial Organization, 1997, Vol 12, Issue 4, p501
- ISSN
0889-938X
- Publication type
Article
- DOI
10.1023/A:1007742414944