Satellite Radio: An Industry Case Study

Radio broadcasting is characterized by diffused taste for programming and highly fragmented supply of content. Satellite radio is a major technological breakthrough that promises to reshape this industry by, among other things, satisfying a greater diversity in tastes and promoting greater variety in content provision. A major issue is that the economies of scale are such that it is unlikely for more than a few (currently, just two) providers to operate in this market due to the considerable infrastructure and content costs.