Question

Before 1996, no one company could own more than one media type in a major market (for example, a city). In 1996, the Federal Communications Commission (FCC) voted to deregulate the media industry. Companies can now own the local television station, newspaper, and radio station in a single market.

One company, Clear Channel Communications, took advantage of this in the realm of radio, buying up over 1,200 radio stations by 2005. However, in November 2006, it announced a sell-off of one-third of its assets,

1. How do you feel this has impacted the range of choice you have in radio stations? Did government deregulation cause the creation of monopolies? Why or why not? How are natural market forces and other economic factors changing or not changing your range of choices in radio stations?

Answer 1

According to me, It has affected the range of choice available to me in radio stations as earlier there were more competitors in the market so they tried to give better news and better media. while due to deregulation big firmed bought and controlled the radio houses so less variety and choice available.

Yes as we consider the above scenario it led to creation of monopolies. because in the above case single company bought many radio stations and started controlling the radio.

As due to creation of monopolies and oligopolies lead to change my range of choices in radio stations as now I have less variety and fewer choices available.