Issues and readings
Which factors encourage strategies of horizontal and diagonal expansion in the media? What does vertical expansion mean and what advantages or benefits are associated with this strategy? Why is it that strategies of vertical, horizontal and diagonal ownership so prevalent in the media? What are the main economic advantages and possible disadvantages of concentrated media and cross-media ownership? What are dangers are associated with monopoly and excessive market power and why is competition seen as a pre-requisite to economic efficiency?
Background reading:
Doyle, Gillian (2002), Understanding Media Economics, Sage Publications: Chap 2.
Obligatory readings:
Albarran, Alan and Dimmick, John (1996), ‘Concentrations and Economies of Multiformity in the Communication Industries’, Journal of Media Economics, 9 (4), 41-50
Picard, Robert (1998), ‘The Rise and Fall of Communications Empires’, Journal of Media Economics, 9 (4), 23-40
Picard, Robert (2002), The Economics and Financing of Media Companies, Chap 10 on ’The Development of Large Media Companies’, 188-211.
Kolo, Castulus and Vogt, Patrick (2003), ‘Strategies for Growth in the Media and Communication Industry: Does Size Really Matter?’ International Journal on Media Management, 5 (4), 251-61
Sanchez-Tabernero, Alfonso and Carvajal, Miguel (2002), ‘ Strategies’ (Chap 3), in Media Concentrations in the European Market, New Trends and Challenges, Media Markets Monograph, Pamplona, Spain: Servicio de Publiciones de la Universidad de Navarra, 82-112.