Question

Before 1996, no one company could own more than one media type in a major market (for example, a city). In 1996, the Federal Communications Commission (FCC) voted to deregulate the media industry. Companies can now own the local television station, newspaper, and radio station in a single market. One company, Clear Channel Communications, took advantage of this in the realm of radio, buying up over 1, 200 radio stations by 2005. However, in November 2006, it announced a sell-off of one-third Of its assets. Go to the discussion area and locate the 03.06 Media Consolidation Discussion thread. Consider the prompt below and then post your response. How do you feel this has impacted the range of choice you have in radio stations? Did government deregulation cause the creation of monopolies? Why or why not? How are natural market forces and other economic factors changing or not changing your range of choices in radio stations?

Answer 1

It has affected the range of choice.

Step-by-step explanation:

This influenced a preference of radio channels as more entrants were on the scene so that they wanted to provide better media and better news. Big companies purchased and controlled radio stations so that less choice and variation were possible due to deregulation.

Yes, because it leads to the creation of monopoly power as we recognise the scenario. Even though a single company has bought and begun trying to control many radio stations in this case.

Since the choice in radio stations is changed by the creation of monopolies and oligopolies, so now have less variation and less choice.