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The Economics of Monomedia and Cross-Media Expansion: A Study of the Case Favouring Deregulation of TV and Newspaper Ownership in the U.K

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  • Gillian Doyle

Abstract

Since the early 1990s, regulators across the globehave faced increasing pressure from media firms toliberalise domestic media and cross-media ownershiprestrictions. Based on empirical research carried outin the U.K., this paper examines the ``economic'' case putforward in favour of deregulation. Findings suggestthat, although factors other than size will affectperformance, there is generally a strong and positivecorrelation between the market share and the operatingprofitability of firms involved in either televisionor radio broadcasting or newspaperpublishing. But, with regard to cross-media ownershipof television and newspapers, there is nocompelling evidence that diagonal integration bringsabout inherent synergies, economies of scope or othereconomic benefits. Thus, whereas a variety ofeconomic efficiency gains may be available to justifya relaxation of restrictions over monomedia expansion,few such benefits can be found in support ofderegulating cross-ownership of television andnewspapers. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • Gillian Doyle, 2000. "The Economics of Monomedia and Cross-Media Expansion: A Study of the Case Favouring Deregulation of TV and Newspaper Ownership in the U.K," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 24(1), pages 1-26, February.
    • Handle: RePEc:kap:jculte:v:24:y:2000:i:1:p:1-26
    DOI: 10.1023/A:1007599617438
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    References listed on IDEAS

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    1. Williamson, Oliver E. & Winter, Sidney G. (ed.), 1993. "The Nature of the Firm: Origins, Evolution, and Development," OUP Catalogue, Oxford University Press, number 9780195083569.
    2. Blair, Roger D. & Kaserman, David L., 1983. "Law and Economics of Vertical Integration and Control," Elsevier Monographs, Elsevier, edition 1, number 9780121034801.
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    2. Kim, Hyunchul & Park, Minsoo & Lee, Sangwoo, 2017. "Do vertically and horizontally integrated firms survive longer? The case of cable networks in Korea," Information Economics and Policy, Elsevier, vol. 39(C), pages 84-93.

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