Conglomeration and Diversification of Media Firms —A Case Study of China Television Company


Lichi Cheng、Ping-Hung Chen


Terrestrial television, Conglomeration, Diversification, China Television Group


This study employed a research method of case study to analyze conglomeration and diversification of mass media in Taiwan. First of all, the study began to review theoretical aspects of conglomeration and diversification of mass media, followed by exploring its causes and results. Secondly, this study investigated the research case, China Television Company (CTV), including its shareholders, organizational structure, market competition, and its motives and strategies of conglomeration and diversification. As a result, this study found that conglomeration and diversification of CTV was mainly resulted from dramatical reduction of its profits since more terrestrial television stations and cable television channels share total advertising expenses. In addition, Taiwan’s changing media environment such as the legalization of cable television and gradually harsh competition occurred in the multichannel market also led to CTV’s conglomeration and diversification.