Concentration and Diversity in the Cable Television Industry Under Regulatory Uncertainty

This study investigates the relationship between the concentration of ownership among cable companies and diversity in the cable networks during a period of regulatory uncertainty—a period when the cable ownership rules were announced but did not have legal impact due to legal challenges from the industry. The results show that although cable ownership rules had not been legally in effect, they did pose potential threats to the industry and affected the cable television industry by decreasing the level of concentration among cable networks while increasing the level of concentration among cable system operators.