Effect of Three Communication Technologies on Mass Media Spending in Belgium

Abstract

This study assessed the impact of color television, cable television, and the videocassette recorder on consumer mass media spending in Belgium. Using the concept of functional equivalence for theoretical guidance, it hypothesized that the introduction of these three communication technologies would not affect the overall level of mass media expenditures over time, as consumers are expected to compensate for these new expenditures by curtailing spending on traditional media. This hypothesis was not supported, though. Trend analyses revealed that these three technologies collectively played a major role in expanding the share of disposable personal income devoted to mass media in Belgium between 1970 and Over the past 5 decades, numerous mass media products and services have been introduced in the United States and many other countries. The introduction of such innovations as television, cable television, and the videocassette recorder (VCR) makes analysis of consumer mass media expenditures 1 a compelling subject of study, because we intuitively would assume that consumers are prepared to expand their mass media budget over time to accommodate these new media. Such expectations are even more consequential in this present decade. In an increasingly competitive marketplace, consumer electronics manufacturers and mass media/telecommunication companies are vying to Michel Dupagne (PhD, Indiana University, 1994) is an assistant professor in the School of Communication at the University of Miami. His research interests include media economics, new communication technologies, and international communication. The author thanks R. 1 In this study, "consumer mass media expenditures" refers to direct consumer spending on traditional mass media goods (e.g., newspapers, radio and television receivers) and services (e.g., cable television; see Dupagne, 1997a, for a discussion of the scope of mass media expenditures).