Political Economy of Media

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Media Studies
• Media Concept
Institutions
• Medium Examined
Mass Media
• Topic
Media Giants
Key Question
• Is media a business
whose texts and
products are to be sold
to the consumers?
• Is media a public
service, in which the
emphasis is to inform,
educate and entertain
the people?
Public or Private Control?
A Watchdog
• Traditionally, the role
of the media is to
safeguard citizens’
rights by ensuring that
public servants,
including those who
govern, are
accountable to the
people. It is the ‘fourth
estate’ of government.
Media as the ‘fourth estate’
• Parliament debates
government policy and
makes laws
• The Executive makes and
execute policy runs the
government
• The Judiciary interprets
and clarifies the law
• Media - a free press can
report all government
activity
Liberal notions of the media
• Rooted in the freedom of
the press and the
neutrality of the market.
• Plays a vital role in
democracy;
• Media informs the
electorate,
• Checks and critiques
government;
• Articulates public
opinion.
Radical Theory
• Media is profit
motivated
• It generates content that
garners the greatest
profit.
• It tells what sells.
• It is geared to readership
and audience tastes and
prejudices.
• It cannot be unbiased or
objective.
The Media Giants
Media Monopolies
• 50 corporations owned
more than half of all
media businesses in
1982.
• By 1993, it was 20.
• In 2003 there are 6.
Media Giants
• Bertelsman AG (Random House,
BMG, Internet)
• News Corp (Murdoch, Fox,
Star TV, newspapers, Dodgers)
• Viacom (Paramount, Blockbuster,
MTV, CBS)
• Vivendi/Universal (Music, studios,
European media)
• AOL/Time Warner (Books,
magazines, movies)
• Disney (ABC, Touchstone, sports,
publishing)
AOL/Time-Warner
TELEVISION
PUBLISHING
Networks
Books
WB Network
HBO
Cinemax
Time Warner Sports
Comedy Central
CNN
TBS
TNT
Cartoon Network
Turner Classic Movies
Court TV
Time Life Books
Book-of-the-Month Club
Little, Brown & Co.
Bulfinch Press
Back Bay Books
Warner Books
Oxmoor House
Production
New Line Television
Turner Original Productions
Warner Bros. Television
Looney Tunes
Hanna-Barbera
Cable Systems
Time Warner Cable
Magazines
Time
Life
Fortune
Sports Illustrated
People
Entertainment Weekly
In Style
Ski
Travel & Leisure
Popular Science
DC Comics
Mad Magazine
MUSIC
FILM
The Atlantic Group
Rhino Records
Elektra Entertainment Grp.
London-Sire Records
Warner Bros. Records
Warner Music International
Time Life Music
Columbia House
Giant (Revolution) Records
Maverick
Qwest Records
RuffNation Records
Sub Pop Records
Tommy Boy Records
Warner Bros. Studios
Castle Rock Entertainment
New Line Cinema
Fine Line Features
INTERNET
AOL
Compuserve
Netscape
AOL Moviefone
Digital City
Mapquest.com
RECREATION
Sports
Atlanta Braves
Atlanta Hawks
Atlanta Trashers
Turner Sports
World Championship
Wrestling
Goodwill Games
AOL Time Warner
• In January 2001, the $165 billion mega-merger between AOL and
Time Warner was the largest media merger in history.
• The new company promised integrated communication, media and
entertainment across all platforms.
• But shares of the company fell off sharply in the two years following
the merger.
• Heading into 2003, U.S. Justice Department has opened inquiries into
AOL's accounting practices prior to the 2001 merger.
Viacom
TELEVISION
Networks
CBS
UPN
MTV Networks
Nickelodeon
Nick-at-Nite
TV Land
CMT
TNN (Spike TV)
VH1
Showtime Networks
The Movie Channel
Sundance Channel
FLIX
BET
Production
Paramount
Spelling Entertainment
Big Ticket Television
Viacom Productions
King World Productions
PUBLISHING
FILM
Production
Books
The Free Press
MTV Books
Nickelodeon Books
Simon & Schuster
Pocket Books
Scribner
Touchstone
RADIO
Networks
Infinity Broadcasting
(manages Westwood One
Radio networks)
Metro Networks
Stations
Infinity Broadcasting
(owns and operates over
180 radio stations)
Paramount Pictures
MTV Films
Nickelodeon Movies
Theater Operations
United Cinemas Intl.
Paramount Theaters
Famous Players
Video
Blockbuster
INTERNET
MTVi Group
CBS Internet Group
Nickelodeon Online
BET.com
Contentville.com
OTHER
Famous Music Publishing
(copyright owners)
Theme Parks
Paramount Parks
Infinity Outdoors/
TDI Worldwide
(the largest outdoor
Advertising group in US)
Star Trek franchise
Walt Disney
Company
TELEVISION
Networks
ABC
The Disney Channel
SoapNet
ESPN
A&E
The History Channel
Lifetime
E!
Production
Buena Vista Television
Touchstone Television
Walt Disney TV, Animation
RADIO
ABC Radio Networks
Radio Disney
ESPN Radio
27 Radio Stations
PUBLISHING
Books
Walt Disney Co. Books
Hyperion Books
Talk/Miramax Books
Magazines
Discover, Disney
ESPN, US Weekly (50%)
Daily Newspapers
County Press (MI)
Oakland Press and
Reminder (MI)
Narragansett Times
St. Louis Daily Record
MUSIC
Buena Vista Music Group
Hollywood Records
Lyric Street Records
Mammoth Records
INTERNET
Buena Vista Internet
Group:
ABC.com, ABCNews.com
Oscar.com, Disney.com
Family.Com
ESPN Internet Group
NFL.com
NBA.com
NASCAR.com
Soccernet.com (60%)
Infoseek (43%)
Toysmart.com (majority
stake)
FILM
Walt Disney Pictures
Touchstone Pictures
Hollywood Pictures
Caravan Pictures
Miramax Films
Buena Vista Home
Entertainment
RECREATION
Sports
Mighty Ducks of Anaheim
Anaheim Angels
Theme Parks
Disneyland
Walt Disney World
Disney-MGM Studios
EuroDisney , Disneyland
Japan, Epcot,
Disney's Animal Kingdom
Disney's California
Adventure,
Disney Cruise Line
Theater
Walt Disney Theatrical
Productions
Walt Disney Co
• The Walt Disney Company is the third largest
global media conglomerate. Its 2000 revenues
topped $25 billion, with 27% derived from parks
and resorts, 24% from studio entertainment, and
17% from media networks.
News Corp.
TELEVISION
Networks - U.S.
FOX Broadcasting Company
FOX News Channel
FOX Kids Network
FOX Sports
(partial in some
markets)
The Health Network
FX
National Geographic's cable
channel (50%)
Golf Channel
TV Guide Channel (44%)
Stations
22 Fox affiliated stations
RADIO
Fox Sports Radio Network
PUBLISHING
Books
HarperCollins General Book
Group
Regan Books
Amistad Press
William Morrow & Co.
Avon Books
Magazines
TV Guide (partial
ownership)
The Weekly Standard
Maximum Golf
Newspapers
New York Post (U.S.)
The Times (U.K.)
The Sun (U.K.)
News of the World (U.K.)
The Australian (Australia)
The Herald Sun (Australia)
The Advertiser (Australia)
INTERNET
TheStreet.com (partial
ownership with New York
Times Co.)
Healtheon/WebMD Corp.
(partial ownership)
SPORTS
Los Angeles Dodgers
New York Knicks (partial
ownership)
New York Rangers
(partial ownership)
Los Angeles Kings
(partial ownership)
Los Angeles Lakers
(partial ownership)
Dodger Stadium
Staples Center (partial
ownership)
Madison Square Garden
(partial ownership)
FILM
Twentieth Century Fox
Blue Sky Studios
Fox Searchlight Pictures
News Corporation
• Rupert Murdoch's News Corporation Ltd. Has media holdings in the U.S.,
Canada, Europe, Australia, Latin America and Asia.
• As of September 30, 2000, its assets totaled $38 billion and total annual
revenues approximate $14 billion.
• In 2003, the company is seeking to acquire DirectTV, a U.S. satellite tv
company.
Bertelsmann
TELEVISION
Production/
Distribution
UFA Film & TV Production
(Germany)
Trebitsch Production
(Germany)
Delux Productions
(Luxembourg)
Cinevideo (Canada)
Holland Media House
(Netherlands)
First Choice (U.K.)
Stations
16 stations in Germany,
France, Luxembourg,
Netherlands, Belgium,
England, Poland, Hungary
RADIO
FM Radio Ntwk (Germany)
PUBLISHING
Books
Ballatine Publishing Group
Bantam Doubleday Dell
Bertelsmann Publishing
Book-of-the-Month Club
(management)
Crown Publishing Group
Doubleday
Fodors Travel
Publications
Knopf Publishing Group
Random House Inc.
Magazines
Gruner & Jahr
Child
Family Circle (majority)
Fitness
Inc.
McCall's (majority owner)
Parents (majority owner)
YM (majority owner)
MUSIC
Arista Records
BMG
BMG Music Publishing
BMG Music Service
RCA Records
Bad Boy Records
LaFace Records
Time Bomb Records
Windham Hill Group
INTERNET
AOL Europe (partial
ownership)
Barnesandnoble.com (partial
ownership with Barnes and
Noble)
CDNow
Lycos Europe (partial
ownership)
Napster (partial stake)
Vivendi/GE/NBC-Universal
TELEVISION
Production/Distribution
Universal Television
Group: NBC!
Multimedia
Entertainment
Brillstein-Grey
Entertainment
(partial owner)
USA Networks Inc.
(partial
owner)
Canal+ (Europe)
PUBLISHING
Havas Press (France)
FILM
MUSIC
Production/Distribution
Universal Studios
October Films
(partial owner)
United International
Pictures
(partial owner)
Cinema International BV
(partial owner)
Universal Music Group:
MCA Records
Polygram
Island/Def Jam
Motown
Decca Records
Geffen/DGC Records
Universal Records
Interscope Records
Rising Tide
INTERNET
Universal Studios New
Media Group
VivendiNet
Vizzavi
(European multi-access
portal)
TELECOMM
Cegetel (a leading
private French wireless
operator)
Vivendi Telecom
International
Vivendi Universal
• Created in December. A merger combined Vivendi's telecommunications
assets with Universal Studios and Canal+'s programming and broadcast
capacity.
• Vivendi Universal's subsidiary Universal Music Group is the world's top
music company, with roughly 22% of the global market share in 1999.
• Heading into 2003, the company plans to sell off $16 billion in assets
because of massive debts.
Convergence
• Corporations own a
variety of media
outlets
• TV, radio, movies,
books, magazines
newspapers, Internet
Links between the Media Giants
Research tool
Who owns what
The following information was found at
http://www.pbs.org/wgbh/pages/frontline/shows/cool/giants/
Synergy
• Corporations crosspromote products
• Dreamworks Shrek
ignored by Disney media
• CNN plugs Turner
Classic Movies
• NBC promotes GEbacked airplane
Batman Synergy
Average American heard 42 mentions by time film opened
Divine secrets of Ya Ya synergy
• 2002 Time-Warner-AOL film
Divine Secrets of the Ya Ya
Sisterhood
• Location of key scene changed
from New York Times to Time
magazine
• HBO showed Media show 28
Days almost daily
• Sometimes followed by HBO
Behind the Scenes: The Ya Ya
Sisterhood
BUT . . .
• Time magazine gave
the film a mediocre
review
• Media synergy
doesn't influence all
content
• Not yet . . .
Conflicts of Interest?
• Disney owns ABC
• How does ABC cover
Disney?
• How does TimeWarner-AOL cover its
many interests?
The Power of The Few
Media power
• The study of power relations forms the basis of the
study of media and communications.
• Power and knowledge are closely interlinked.
What is power?
• Power is the means by which certain individuals and
groups are able to dominate others
• Power is potentially or actually part of all social
relationships
• Usually a person who has control also has power
• Media Power is exerted by controlling the
informational environment, system of influences,
commands and feedback
Newspaper organization
Proprietor
Press manager
Circulation
News Editor
Editor
Advertising manager
Chief of News Bureau
Chief sub-editor
Chief Reporter
Sub-editors
Reporters
Special correspondent
Photo Editor
Photographers
Sports Editor
Foreign Editor
Reporters/ sub-editors
Correspondents
Who has power over media
content?
• Traditionally = Editors
• Now?
–
–
–
–
–
–
–
Competition in the market place?
Interest groups?
Advertisers?
Audience?
Readers?
Government?
Owners?
How can outside influence
control editorial decisions?
• Operational:
Control of editors / reporters
• Allocative:
Through the allocation of
funds / personnel for certain
programs or certain sections
of the newspaper denial
of funds for other sections
or programs
• External:
Pressure from advertisers /
consumer groups
Media Diversity
• Media diversity is when media outlets are owned
by a number of persons making diversity of
opinion a realistic expectation.
• Democratic governments attempt to ensure
diversity and are wary of concentration in media
ownership.
• Governments attempt to ensure diversity and are
wary of concentration in media ownership
Convergence
and Diversity
• Corporations own a
variety of media outlets
and shops
• TV, radio, movies, books,
magazines newspapers,
Internet
• In effect this reduces
choice and diversity
Or
Critics of consolidation
Rupert Murdoch as Mao
• Mergers limit number
of independent voices
in media
• Limits free exchange
of ideas
• Facilitates censorship
• Profit imperative,
rather than quality,
determines
programming
Government controls on media
• Airwaves are in the the
public domain
• Radio /TV bound by
public service
requirements.
• BUT Governments are
reducing limits on media
consolidation
• More choice at lower
prices?
Corporations and Culture
• Fewer media businesses
= less choice of
opinion?
• Corporations control
more culture industries
• This drags down
standards
• Leads to more “trash”
• Future of freedom of
speech
Oligarchy powers
• Monopolies are noncompetitive
• Hypercommercialize
content without fear of
competitive retribution
• US commercial radio =
18 minutes of ads per
hour
• Low quality populist
output
Media Moguls
• ‘Media moguls” are
persons who own and
operate large media
corporations in a
personal or eccentric
style
• Moguls occur when there
are one or a few players
in the media scene
• Gives rise to fears of the
reflection of one point of
view.
Censorship
• Rupert Murdoch's (News Corp.)
• HarperCollins cancelled publication of book by
Chris Patten former British Government of Hong
Kong
• Why?
• Patten critical China
• Fact. News Corporation has huge interests in
China
• Self-censorship an even greater concern
The Future?
Research Questions
• Can the internet and other new technology
break the hold of the media giants?
• Is the influence of the media giants benign
or harmful to democracy and freedom?
• Is too much power in the hand of too few?
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