Rapid Download Squad

This book presents a framework for understanding why the convergence of digital media and communications networks facilitates the exercise of two important new forms of market power. “Vertical” market power allows cable giants to leverage their monopoly over “wires” to dominate high-speed Internet service and exert control over the development of new, broadband Internet applications and content. Monopsony, or buyer power, allows cable operators who control hundreds of video channels to dictate the terms and conditions under which programming is made available to the public. For both video and highspeed Internet, the result is raised prices and retarded innovation.

The book combines the analytic concept of platforms (which has become prevalent in the analysis of the computer and communications industries) with traditional structure, conduct, and performance analyses from the field of industrial organization. The book also identifies innovative policies—beyond simply denying mergers—that federal, state, and local authorities can implement to prevent further abuse of consumers and other firms in the industry, and that can promote competition in digital information markets.