Happily ever after? Vertical and horizontal mergers in the U.S. media industry

Arbeitspapier

This paper provides an economic analysis of recent vertical and horizontal mergers in the U.S. industry for audiovisual media content, including the AT&T-Time Warner and the Disney-Fox mergers. Using a theory-driven approach, we examine economic effects of these types of mergers on market competition, focusing on digital media content distribution. In doing so, we address three research questions: (i) Is the current development of analyzing industry with its recent merger activity concerning? (ii) Would vertical or horizontal integration be more preferable for overall welfare and competition in this industry? (iii) What are implications for antitrust policy? We conclude from our analysis that in the already highly horizontally concentrated U.S. market for audiovisual content the process of further vertical integration creates concerns from a competition policy perspective. Moreover, even though horizontal concentration on some of the market stages may be anticompetitive as well, vertical integration is likely to be more harmful. As a consequence, we recommend a stricter approach to vertical merger control in this industry, as well as a more active abuse control against already vertically-integrated media companies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Ilmenau Economics Discussion Papers ; No. 126

Classification and Topics

• Classification: Wirtschaft ; Vertical Restraints; Resale Price Maintenance; Quantity Discounts ; Monopolization; Horizontal Anticompetitive Practices ; Antitrust Law ; Regulated Industries and Administrative Law ; Entertainment; Media ; Information and Internet Services; Computer Software ; Oligopoly and Other Imperfect Markets ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Economics of Regulation ; Telecommunications
• Subject: competition policy ; antitrust ; industrial economics ; digitization ; media economics ; institutional economics ; industrial organization ; mergers ; vertical integration ; horizontal integration

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stöhr, Annika ; Noskova, Victoriia ; Kunz-Kaltenhäuser, Philipp ; Gänßle, Sophia ; Budzinski, Oliver
• Event: Veröffentlichung
• (who): Technische Universität Ilmenau, Institut für Volkswirtschaftslehre
• (where): Ilmenau
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/197995
• Last update: 10.03.2025, 11:45 AM CET