Do vertically and horizontally integrated firms survive longer? The case of cable networks in Korea

This study examines the determinants of the survival of Korean cable networks, focusing on their vertical and horizontal integration. We use survival estimations to analyze the cable networks’ duration. We find that a cable network survives longer if it is integrated with more same- and distinct-genre networks, has more viewers, and is carried by more distribution platforms. We also find that vertical integration has no significant effect on network duration when we control for horizontal integration. Although our study abstracts from estimating the cost or production function, the results suggest that joint program production may achieve substantial synergies such as portfolio effects and economies of scale and scope.