1. Media Studies Media Concept Institutions Medium Examined Mass Media
Topic Media Giants

2. 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?

3. Public or Private Control?

4. 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.

5. 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

6. 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.

7. 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.

8. The Media Giants

9. Media Monopolies
50 corporations owned more than half of all media businesses in 1982.
By 1993, it was 20.
In 2003 there are 6.

10. 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)

11. Convergence Corporations own a variety of media outlets
TV, radio, movies, books, magazines newspapers, Internet

12. Links between the Media Giants

13. Research tool Who owns what
The following information was found at

14. 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.

15. 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.

16. 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.

17. 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.

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

19. Average American heard 42 mentions by time film opened
Batman Synergy
Average American heard 42 mentions by time film opened

20. 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

21. BUT . . . Time magazine gave the film a mediocre review
Media synergy doesn't influence all content
Not yet . . .

22. Conflicts of Interest? Disney owns ABC How does ABC cover Disney?
How does Time-Warner-AOL cover its many interests?

23. The Power of The Few

24. Media power
The study of power relations forms the basis of the study of media and communications.
 Power and knowledge are closely interlinked.

25. 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

26. Newspaper organization

27. Who has power over media content?
Traditionally = Editors
Now?
Competition in the market place?
Interest groups?
Advertisers?
Audience?
Readers?
Government?
Owners?

28. 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 

29. 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

30. 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

31. 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

32. 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?

33. 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

34. 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

35. 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.

37. 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

38. 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?