The emerging oligopoly of pay-TV in the USA

Barry Litman and Susanna Eun

Telecommunications Policy, 1981, vol. 5, issue 2, 121-135

Abstract: The pay-television industry in the USA has been developing very rapidly in the past five years and is providing network quality alternatives to the mass taste programming of commercial television. However, the industry has been developing along lines very similar to the early history of radio in the USA with the emergence of strong distributor networks, restrictive affiliation contracts, and wide-spread vertical integration across all stages of production. History and economic efficiencies suggest that the result will be a strong oligopoly market structure. The proper public policy, then, is to insure that the unavoidable degree of concentration is not greater than that needed for efficiency reasons.

Date: 1981
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