What Is Market Failure In Canada

Market failure was originally presented in chapter one of ‘Media Policy in Canada.’ Market failure is the concept that our small markets in Canada are unable to provide enough of our own domestic media products to produce sufficient profits. Market failure is not the absence of commercial success of media content, but instead, the failure of the market entirely as a whole at what markets are believed to do best; it is the failure to lead to the utmost best possible outcome for the highest number of participants (Grants & Wood). Canadian media content has promise for cultural and social appeal, however undergoes economic challenges such as small markets as well as foreign and American competition. Policy makers view cultural benefits of media as the main motive for interceding in media markets. Media offers ‘public goods’ with various aspects of private consumption. Competition is not perfect in media markets, as a result consumers do not have total access to all content. It is difficult and complex for cultural goods to be substituted for one another. For example, Canadian and American television are not entirely the same, and therefore have considerable differences. Small countries such as Canada are affected because markets are not providing equal access to local media content for those who wish to consume it. …show more content…
A great deal of Canadian media policy is systematized over the concept of market failure, and the impression that in Canada, small markets are not capable to provide enough of our own domestic media products. Canada’s small domestic media market is overpowered by the available access to US media products. It is frustrating because profits are being generated from larger American audiences and