Telcos

Consumers And Their Satellite Dishes: How Strong Is The Bond?

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Executive Summary

A new study shows that cable companies have a greater degree of market power than satellite companies. Home satellite systems provide the only alternative to local cable television companies for most Americans. The number of satellite customers has grown from 400,000 in 1994 to 10 million in 1999, making satellite dishes one of the fastest adopted consumer products in U.S. history. Despite the popularity of this new product, just how much competition is there between cable and satellite? During the last two decades, economists have devoted increasing attention to the importance of new goods and their role in enhancing competition.

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