Competition and Content in the U.S. Video Market

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Abstract
Strategic differences between major and independent producers competing in the video market are examined by considering changes in the types of content produced by the firms and the shares of rental and sales markets they achieve over time. This study reveals that competition has increased in the video industry, as shown by reduced concentration ratios, and that independent producers have grown more successful. The content range of the material offered, however, has not been expanded. Consumer choice has not increased in terms of type of product available, and major and independent producers are pursuing strategies to compete for the same market niches.