The Factors Affecting Radio Format Diversity After the Telecommunications Act of 1996: Ownership Concentration, Stations and Audience

Abstract

The passage of the Telecommunication Act of 1996 eliminated national radio station ownership limits and considerably relaxed local station ownership caps compared to previous ownership restrictions. Media policymakers have been concerned that increases in media ownership concentration not decrease market format diversity. However, recent format diversity research on the radio industry has not directly considered other factors beyond ownership concentration that may affect format diversity. This study replicates Rogers and Woodbury's (1996) and found the number of programming formats broadcasting in a market (format diversity) is positively related to the number of radio stations serving the market. The percentage of market population listening to radio is positively related to the number of market stations and is not statistically related to the number of formats. This study also found increases in radio ownership concentration do not affect the number of market formats; however increases in ownership concentration may negatively affect the size of a market's radio audience.