Examining the effect of innovation on the market structure of the U.S. Media industry

Abstract

This dissertation examines if and how technological innovation influences market structure of the media industry. The empirical focus is twofold: 1) to measure and quantify the level of ownership concentration and competition (i.e., market structure) of the U.S. media industry, and 2) to examine the market structure of the media industry as a function of the adoption of three different media technologies, including television, cable television, and the Internet. OLS regression analysis is employed to address the following research question: How do technological innovations affect the market structure of the media industry? Results of the study provide support for the idea that changes in the adoption rates of television and cable television lead to changes in the market structure of the media industry. The study, however, identifies challenges associated with collecting sufficient data to reach solid conclusions. Finally, the study makes recommendations for future studies that could overcome these challenges and building upon the findings resulting from this study.