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. As the ‘fourth estate’ media was expected to be the voice of the citizens, take the views of the governing to the governed and vice versa…in short, create and provide the “public sphere” which is vital for the effective functioning of a democracy. The media is to serve the ‘public interest’. The term ‘public interest’ does not mean what the public is interested in, but means that the media should work in the interest of the public, give the members of the public the information that will make them perform effectively as citizens. You will hear more about the liberal theory of the media later this semester.

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)

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/

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.

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.

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.

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.

Synergy Corporations cross-promote products Dreamworks Shrek ignored by Disney media CNN plugs Turner Classic Movies NBC promotes GE-backed airplane

Average American heard 42 mentions by time film opened 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 Time-Warner-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

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 Mergers limit number of independent voices in media Limits free exchange of ideas Facilitates censorship Profit imperative, rather than quality, determines programming Rupert Murdoch as Mao

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 non-competitive 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?