Media control: a case for privatization in transitional economies

Abstract

The television market can be one of the most dynamic industries if country-specific regulations allow for private competitors to enter the market. The entry of competition changes the market from monopolistic to oligopolistic, which has positive performance implications for the industry. Our research analyzes the development of the Croatian TV market from the monopolistic stage to the current oligopolistic stage. Econometric models in this article aim to estimate the current trend of market concentration and its future potential. The authors’ research focusing on the industry from a market concentration perspective provides guidance for the practitioner in regard to profitable investment opportunities. They also illustrate for other transitional economies that to move toward a “free” society, media must be free from government control which will evolve rapidly once privatized.