An Oligopolistic Market Structure and Its Impacts to Macroeconomy

Firms in our Macroeconomy
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The media industry in the U.S. presents an oligopolistic market structure where few companies are controlling the significant share of the industry. The film and television production in the U.S. is dominated by five media conglomerates including The Walt Disney, NBCUniversal, Viacom, WarnerMedia, and Sony (Warf, 2007). Previously, 21st Century was included in the list but Walt Disney bought it in 2019 making it the largest media company in the world. Therefore, the control of the media industry in the U.S. by few companies with Walt Disney taking the largest share is part of an oligopolistic market structure (Stöhr, & Budzinski, 2020). Walt Disney currently controls most of the media platforms in the industry, thus tend to be affected by macroeconomic factors.
The domination of Walt Disney in the media industry places it in a position to be affected by the macroeconomics. The country’s macroeconomy have positively impacted the firm which has continued to operate profitably. The country’s economic fall-out had significant impacts on various industries including the media industry, but Walt Disney was able to stay afloat amidst the chaos. The firm’s diversity in the media industry helped it to continue operating profitably even when the market structures were failing. Therefore, the macroeconomics of the country have enabled the firm to grow due to the high income levels and lower rates of unemployment which leads to people purchasing its products.
Walt Disney was properly situated to survive the economic fallout thus it was not among the companies that were bailed out by the federal government. Company bailouts are crucial in an economic disaster which is meant to prevent the big firms from failing. In an oligopolistic market structure, bailouts are unavoidable as...