IPcentral Weblog
  The DACA Blog

Friday, September 9, 2005

Cable Ownership Caps Reconsidered
(previous | next)

Yesterday, economist Daniel English and I filed comments at the FCC in the cable ownership caps proceeding. (MM Docket No. 92-264)

In the filing, Daniel and I argue that because of the array of new distribution platforms and the resulting increase in outlets and competition, cable ownership caps are no longer needed. More broadly, we show how the old regulatory model for analyzing media ownership issues is obsolete in light of rapid market evolution and ongoing technological innovations. Any future market power issues that might creep up in the media sector can be better handled by relying on the nation's antitrust laws, we argue.

In our new media model, we show how media content is no longer tied to specific distribution platforms and receiving devices because of the transition to digital formats and transmission methods. The combination of ongoing digital convergence and an increase in market innovation and entry makes it nearly impossible for any media company to restrict the flow of programming in the market. Simply stated, cable ownership regulations are specifically geared towards an outdated media environment and no longer apply to today's video marketplace.

Again, the paper can be found here, and you might also be interested in this earlier filing that we did in the Comcast-Time Warner-Adelphia merger proceeding. Daniel and I also recently penned a short paper entitled "Testing 'Media Monopoly' Claims: A Look at What Markets Say" in which we evaluate the market performance of five large media stocks (Time Warner, News Corp., Clear Channel, Comcast, and Viacom) over the past five years and show that they have lost 52 percent of their market value (in terms of market capitalization). Moreover, we chart the performance of the entire Dow Jones U.S. Broadcasting & Entertainment Index and show that it is down almost 45 percent below where it stood in 2000. This is another indication that the media industry is not one big monopoly but instead subject to intensely competitive rivalry and new entry / substitutes.

Finally, I'll just put in another plug for my recent book on these issues, "Media Myths: Making Sense of the Debate over Media Ownership" as well as an important paper by media economist Bruce Owen that we recently published, "Confusing Success with Access: 'Correctly' Measuring Concentration of Ownership and Control in Mass Media and Online Services."

posted by Adam Thierer @ 11:10 AM | Cable , Mass Media

Share |

Link to this Entry | Printer-Friendly

Post a Comment:

Blog Main
RSS Feed  
Recent Posts
  EFF-PFF Amicus Brief in Schwarzenegger v. EMA Supreme Court Videogame Violence Case
New OECD Study Finds That Improved IPR Protections Benefit Developing Countries
Hubris, Cowardice, File-sharing, and TechDirt
iPhones, DRM, and Doom-Mongers
"Rogue Archivist" Carl Malamud On How to Fix Gov2.0
Coping with Information Overload: Thoughts on Hamlet's BlackBerry by William Powers
How Many Times Has Michael "Dr. Doom" Copps Forecast an Internet Apocalypse?
Google / Verizon Proposal May Be Important Compromise, But Regulatory Trajectory Concerns Many
Two Schools of Internet Pessimism
GAO: Wireless Prices Plummeting; Public Knowledge: We Must Regulate!
Archives by Month
  September 2010
August 2010
July 2010
June 2010
  - (see all)
Archives by Topic
  - A La Carte
- Add category
- Advertising & Marketing
- Antitrust & Competition Policy
- Appleplectics
- Books & Book Reviews
- Broadband
- Cable
- Campaign Finance Law
- Capitalism
- Capitol Hill
- China
- Commons
- Communications
- Copyright
- Cutting the Video Cord
- Cyber-Security
- Digital Americas
- Digital Europe
- Digital Europe 2006
- Digital TV
- E-commerce
- e-Government & Transparency
- Economics
- Education
- Electricity
- Energy
- Events
- Exaflood
- Free Speech
- Gambling
- General
- Generic Rant
- Global Innovation
- Googlephobia
- Googlephobia
- Human Capital
- Innovation
- Intermediary Deputization & Section 230
- Internet
- Internet Governance
- Internet TV
- Interoperability
- IP
- Local Franchising
- Mass Media
- Media Regulation
- Monetary Policy
- Municipal Ownership
- Net Neutrality
- Neutrality
- Non-PFF Podcasts
- Ongoing Series
- Online Safety & Parental Controls
- Open Source
- PFF Podcasts
- Philosophy / Cyber-Libertarianism
- Privacy
- Privacy Solutions
- Regulation
- Search
- Security
- Software
- Space
- Spectrum
- Sports
- State Policy
- Supreme Court
- Taxes
- The FCC
- The FTC
- The News Frontier
- Think Tanks
- Trade
- Trademark
- Universal Service
- Video Games & Virtual Worlds
- VoIP
- What We're Reading
- Wireless
- Wireline
Archives by Author
PFF Blogosphere Archives
We welcome comments by email - look for a link to the author's email address in the byline of each post. Please let us know if we may publish your remarks.

The Progress & Freedom Foundation