Review of Barry R. Litman, The Vertical Structure of the Television Broadcasting Industry

The Coalescence of Power

by Stanley Besen

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This review disputes Litman's contention that regulating contractual relationships between the television networks and their affiliates and program suppliers will improve industry performance. The various proposals offered by Litman would, at best, simply redistribute profits among industry participants. At worst, they would raise costs and lower the quality of viewing fare. The review argues that only structural changes — increasing the number of viewing outlets and wider use of direct viewer payments — are likely to improve the service the industry offers to viewers.

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