This paper describes a system dynamics simulation model of the interrelationship among firms competing in the entertainment industry. The model integrates ideas from strategy design, organization design and new technology adoption to describe exactly how the diffusion process of new hardware and software technologies into the entertainment industry is changing the power and stability of syndication firms, the dynamic changes in the extant production capacity of TV networks, and the investment opportunity in basic cable network system operators. The economic organization and regulation of TV networks broadcasting vary substantially from country to country, but having a mixture of public private enterprise placed under the supervision of a government agency is a common arrangement. TV networks and affiliates in the United States represent a clear manifestation of government regulation. The granting of licenses and promulgation of rules pertaining to cross-media ownership enabled independently owned affiliates to carry regularly scheduled programming produced by the networks or by outside contractors. Except for news and sports programs, TV networks currently do not participate significantly in the ownership of production. Yet this situation has been changing through modification stemming form the financial interests and syndication rules presently in effect. A team of managers and planners from a group of syndicators met to discuss current events and the changing structure of the entertainment industry. Changes stem from the moves of major pay cable channels, TV networks, basic cable networks and system operators, each responding differentially to the diffusion of new signal-transmission technologies into their industry. A broad discussion culminated into a system dynamics simulation model of the interrelationships among firms competing in the entertainment market. The model produced new insights into the power and stability of syndication firms, the dynamic changes in the extant production capacity of TV networks, and the investment opportunities in basic cable and networks and cable system operators.

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Date created

• 1994

Type

• Document

Processing Activity

• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

License

• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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ITEM CONTEXT

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fe35db792b573af835d96e6eba4759cd

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Collection

System Dynamic Society Records

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Collecting area

• This collection is part of the University Archives