Methods of measuring media concentration

Abstract

Technological developments are breaking down the barriers between previously distinct media sectors. The current media ownership regulations are considered to be too inflexible to allow firms to take full advantage of the multimedia opportunities offered by the new technologies. Thus a search is on for new methodologies to measure and control concentration of media ownership, including cross-media ownership. Both the European Commission and various Member States favour a new ownership control regulatory regime which would reflect these market changes. A fresh framework of rules for calculating limits to concentration in the media market as a whole is now under consideration. The dual objective of such regulation is to allow the media industry to exploit the new opportunities, while at the same time safeguarding the public interest in media diversity. Various proposals have been put forward for the measurement of media market shares in the light of the two above objectives. These include measurement of audience share and of revenue share. This article assesses the feasibility and effects of these various proposals. It examines the problems associated with all types of concentration measures and assesses their appropriateness in the broad context of media concentration's impact on the public interest. At the end alternative proposals are put forward for a better measure.