Li, Shu-Chu Sarrina · Chiang, Chin-Chih
The relationship between market concentration and product innovation has long been a dispute among media economists with some suggesting a negative relationship between market concentration and product innovation, and other asserting the contrary (Burnett, 1992; Dominick & Pearce, 1976; Peterson & Berger, 1975). The main purpose of this study is to investigate this issue by examining the relationship between market competition and program ming diversity in Taiwan’s TV market.
Taiwan’s TV market was under rigid regulations for more than twenty years with only three networks dominating the market. But recently, with the booming Asia-Pacific satellite TV industry, the situation has been under great transformation. The changing environment of Taiwan’s TV market poses a good opportunity for researchers to examine the relationship between market competition and programming diversity. This study takes this opportunity to investigate the relationship between market structure and product innovation by collecting programming data of the three TV networks in Taiwan. Six years of programming data of the three networks in Taiwan were collected for data analysis. The results show a negative relationship between market competition and program diversity. Possible explanations for this result were discussed in the paper.