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Toward Monopolistic Competition in U.S. Local Television News

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  • Angela Powers

Abstract

This article analyzes the market structure of large, medium, and small market stations by looking at changes in market shares and number of competitors. By analyzing specific factors that affect conduct variables of local television news, a change in market structure from oligopolistic to monopolistic competition can be predicted. Three factors were used as independent variables framing the discussion: number of sellers within the industry, degree of similarity of market shares, and degree of product differentiation. Findings suggest that in smaller markets only the most financially secure, number-one-rated stations will risk adding more time for news to their programming. However, in top 10 markets, where the financial stakes are higher, trailing stations compete by increasing their news presence throughout the day. Overall, the number of television news competitors has increased, whereas shares have decreased, indicating the beginnings of a shift from oligopolistic to monopolistic competition.

Suggested Citation

  • Angela Powers, 2001. "Toward Monopolistic Competition in U.S. Local Television News," Journal of Media Economics, Taylor & Francis Journals, vol. 14(2), pages 77-86.
    • Handle: RePEc:taf:jmedec:v:14:y:2001:i:2:p:77-86
    DOI: 10.1207/S15327736ME1402_02
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