The Impact of Market Competition on the Terrestrial TV Networks in Taiwan: The Perspective of Niche Theory


Shu-chu Sarrina Li


Organizational ecology examines organizational behaviors by looking at the interaction between an organization and its environments. Organizational ecologists believe that the appropr iateness between an organization and its environment is the main reason for the survival of this organization. Unlike media econom ists, organizational ecologists define market competition from a dif ferent perspective. According to organizational ecology, whenever there is overlapping between two organizations or two populations, they are in competition against each other. Therefore, competition is not always direct, nor is conscious. This study adopts the perspective of niche theory, which is one of the theories from organizational ecology, to analyze the impact of market competition on the terrestrial TV networks in Taiwan.

According to Dimmick (1993), the most critical resources in TV industry are advertising income, audience, and program content. This study employed one of the three resources, program content, to examine the impacts of satellite TV on the terrestrial TV networks in Taiwan. Data analysis shows that as the market competition increases, the niches of the terrestrial TV networks become narrower, and that the degree of program overlapping between satellite TV and terrestrial TV is high, so the competition between them are strong. More findings are discussed in the paper.