FOR IMMEDIATE RELEASE
August S, 2014
Duopoly broadcast TV markets don't result in larger advert charges, financial research concludes
WASHINGTON, DC -- The rationale underlying a number of many years-previous media possession guidelines that broadcast tv stations solely compete towards themselves in native markets is just not true, the National Association of Broadcasters stated in feedback filed at this time with the FCC. The Commission ought to modify its guidelines to raised mirror at present and tomorrow's market that options competitors from rival industries because it weighs enjoyable possession restrictions, NAB stated.
In its feedback submitted to the FCC for its 2014 Quadrennial Ownership Review, NAB included an financial research by Economists Incorporated that examined the Department of Justice Antitrust Division's place that broadcast TV stations don't face competitors from cable and different media sources for native promoting income. The research discovered no proof that in native markets the place broadcasters are engaged in a joint gross sales settlement (JSA) or shared service settlement (SSA) are broadcasters capable of cost larger promoting charges than in markets the place these preparations will not be current.
"The presence of JSAs and SSAs just isn't statistically related with elevated promoting costs in native markets," concluded the research, which was carried out by economists Hal C. Singer and Kevin W. Caves. "There is even some proof that markets with JSAs and SSAs have costs roughly sixteen % decrease than different markets, suggesting that these preparations profit shoppers by decreasing prices."
The research, which analyzed pricing knowledge from the previous 10 years in 210 native markets, additionally discovered that in markets with a duopoly tv station proprietor should not have greater promoting costs than in markets with no duopoly. "Increases in native tv broadcast station focus don't seem to have any impact on the promoting charges that broadcasters are capable of cost," the research concluded. That end result "is in line with the conclusion that native broadcasting costs re disciplined by non-broadcast options," the research discovered.
"The newspaper-broadcast cross possession rule, particularly, ought to have been eradicated years in the past," stated NAB. "Failure to achieve this has possible led to the hastened diminishment of the newspaper business and will function a warning to the Commission of what can occur to the marketplace when it ignores its deregulatory mandate and waits too lengthy to regulate its guidelines."
Barriers that prohibit entry to capital are the reason for depressed feminine and minority possession of broadcast radio and TV stations, NAB stated. Ownership restrictions haven't led to a rise in feminine and minority entities proudly owning broadcast stations and actually restrict their capability to acquire enough capital to buy and function stations.
"Purposefully miserable the worth of broadcast stations by means of possession limitations solely makes it harder for present licensees to take care of working capital with a view to compete or for potential new entries to safe funding," stated NAB. "It merely has not labored. The time has come for the Commission to think about higher incentives-based mostly options."
About NAB
The National Association of Broadcasters is the premier
advocacy affiliation for America's broadcasters. NAB advances
radio and tv pursuits in legislative, regulatory and
public affairs. Through advocacy, schooling and innovation, NAB
allows broadcasters to greatest serve their communities,
strengthen their companies and seize new alternatives within the
digital age. Learn extra at www.nab.org.
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