Competition and regulation in the US video market

Robert W Crandall

Telecommunications Policy, 1997, vol. 21, issue 7, 649-660

Abstract: After decades of alternating between regulation and deregulation of cable television, the US appears to be on the verge of allowing entry from new distribution media--especially direct-to-home satellites--to provide market discipline for cable-television operators. This is a particularly welcome development given the tendency of past regulatory exercises to impede the development of cable service quality. When the US re-regulated cable television in 1992, it responded to the public outcry over rising cable rates even though these rates were accompanied by improvements in service quality that more than compensated consumers for the higher rates. Indeed, there is even evidence that cable operators have not enjoyed monopoly power in large urban areas, and that regulation of cable services in such areas was not only counter-productive, but even not justified on the basis of simplistic market-structure arguments.

Date: 1997
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