What is a Media Oligopoly ?
In media, an Oligopoly is a market structure in which a small number of firms control increasing shares of the mass media.
The Advantages of an Oligopoly
1. High Profits
Since there is such little competition, the companies that are involved in the market have the potential to bring a large amount of profits. The services and goods that are controlled through oligopolies are generally highly needed or wanted by the large majority of the population.
The Disadvantages of Oligopoly
2. Simple Choices
Having only a few companies that offer the goods or service that you are looking for makes it easy to compare between them and choose the best option for you. In other markets it can be difficult to thoroughly look at all of the competitors to compare pricing and services offered.
1. Reduced for No Fear Of Competition
Often times the companies that are in the oligopoly market become very settled with their business. The profits and the way they run are guaranteed to work, so they no longer feel the need to come up with creative or innovate new ideas.
3. Better Information and Goods
Right along with price competition, product competition plays a huge part in a the oligopoly market structure. Each company scrambles to come out with latest and greatest thing in order to sway consumers to go with their company over a different one. This also goes with the advertising and amount of information and support that they provide their customers.
2. Less Choices
In many cases having to choose a company in an oligopoly is like choosing the lesser evil. The consumers have very limited choices and options for the services that they want. This is one of the biggest pitfalls of a oligopoly.
3. Limited Freedom of the press
Once large media house become commercially driven they choose to suppress stories that do not serve their interests. In essence, they become driven for capital instead of the public interests.
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Distinctions between Monopoly and Oligopoly
Debates surrounding
Media Oligopoly
Monopolistic Control on Media VS Oligopolistic Control on Media
Deregulation
Several entities dominate and control the media market.
A single entity dominates the media market with
one or more media Channels.
Little or no competition in the market.
Companies compete to sway the larger proportion of the population.
Company has multiple products.
The competitive market leads to improvement in quality, innovation and diversification.
Without fear of competition, companies have higher prices to increase profit.
Occurs when the barriers of the government are effectively removed to allow for the commercial exploitation of media.
Companies ensure low or competitive prices to attract more consumers.
Influential or larger entities tend to "buy out" smaller entities to expand and dominate the market.
As the companies co-exist, the decision of one company may influence the decisions of others to maintain competitive grounds
Reduced number of information sources that result in unified publicized information.
More information sources, more media channels and content.
Media Pluralism
Is related with the Independence of media from private control and disproportionate influences of one or few economic, social and/or political powers.