benefitted from some economies of scope at the local level from being able to operate
multiple stations. It is much less clear how local consolidation affected the welfare of
advertisers, as it is unclear whether it has had a significant effect on the quantity of com-
mercials that stations play or advertising prices; or of listeners, as it is unclear whether, in
markets taken as a whole, the quality and overall variety of programming were affected.
One might view this lack of a clear conclusion on welfare effects as disappointing given
the amount of careful empirical work that has tried to look at ownership in the radio
industry, but it could simply reflect the fact that there have been different effects in dif-
ferent parts of the industry and that, to date, researchers have not been able to fully
develop empirical models, or access the appropriate data, that can account for the type
of complicated multi-homing patterns, by both listeners and advertisers, that exist in
radio markets.
There are many other possible topics for research that have hardly been touched on at
all, and it is appropriate to list a couple of them here. First, how does radio fit into the
modern media landscape? Both antitrust policy and FCC regulations place constraints on
concentration in radio that may be less appropriate in an era when competition from
other media for both listeners’ attention and advertising dollars is becoming increasingly
fierce. This increased competition might imply, for example, that common station own-
ership, either locally or nationally, may have quite different effects today than it had in the
late 1990s. Second, what value do listeners, or society as a whole, place on local program-
ming? Radio has moved from being dominated by national networks to being a local
medium and, in the last 20 years, it has moved back toward a national model even if much
of the programming can be made to “sound local” due to the clever use of voice-tracking
technology. This is especially important to understand in the context of local news pro-
gramming, and its possible effects on political participation and civic engagement.
ACKNOWLEDGMENTS
I thank the Editors, Mark Fratrik of BIA/Kelsey and John Lund of Lund Media Research for useful com-
ments on earlier drafts of this chapter and for discussions about certain features of the radio industry. All errors
are my own.
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