Vertical Integration, Regional Concentration, and Availability in Cable Programming Networks

Sung Wook Ji

Journal of Media Economics, 2015, vol. 28, issue 4, 184-216

Abstract: Using a 2009 cross-sectional database of digital cable systems in the United States, this study examines the combined effects of vertical integration and regional concentration (cable TV clusters) on the carriage and tier positioning of cable networks. Focusing on four basic cable network segments—the outdoor, cartoon, movie, and Comcast affiliated networks—this study finds that vertical integration has reduced program availability for cable subscribers by increasing their access to integrated networks and by limiting their access to unaffiliated networks. It also finds that an increase in the regional concentration of cable systems positively affects the availability of overall basic cable networks, regardless of vertical ownership. An increase in regional concentration is also associated with a decrease in the effects of vertical integration, suggesting that system efficiency through regional concentration may mitigate the vertical integration effect.

Date: 2015
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DOI: 10.1080/08997764.2015.1094077

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