The media industry is obsessed with disruption. The news media have been going through a decade and a half of decline — most notably in advertising revenues — that has caused many bankruptcies and also a rethink of how media organizations organize their businesses. And despite all of this, new entrants abound.
In the business world, disruption is a catch-cry; something that business leaders live in fear of. To the antitrust lawyer, it may actually sound like a familiar process whereby monopoly power is undone by an entry into the market based on new technologies. When the conditions are right, even mergers that would look like consolidating to high concentration can be viewed as promoting competition because the resulting firms are disciplined and vulnerable to technological competition. But what have we learned about how likely those conditions are to arise?
Click here for our recent update on mergers and disruptive innovation authored by Professor Joshua Gans of the University of Toronto, as published in our Global Media and Communications Quarterly.