EFFECT OF CABLE-TELEVISION ON ADVERTISER AND CONSUMER SPENDING ON MASS-MEDIA, 1978-1990

Previous studies of the cable industry have been inconclusive in determining its impact on other media, especially that of broadcast television. While some industry observers predict a dire future for broadcasters due to the erosion of market share by cable, others contend the current recession has been responsible for the industry's woes. McCombs' theory of relative constancy is used as a basis for examining trends for consumer and advertising spending on media during the 1978-1990 time period. Both trends were found to be positive, indicating that, overall, cable has attracted additional spending on media.