1. The Media and Global Economics
Chapter 13
The Media
and
Global Economics

2. WHAT IS CULTURAL IMPERIALISM?
the spread of US media and popular culture globally
US styles and products dominating the global market
US cultural values shaping cultures and identities in other nations

3. How is cultural imperialism an economic issue?
How is cultural imperialism an ethical issue?

4. Media Structures in a Global Economy
MONOPOLIES
OLIGOPOLIES
LIMITED COMPETITION

5. MONOPOLY
When a single firm dominates production and distribution in a particular industry, either locally or nationally

6. OLIGOPOLY
When a handful of companies dominate an industry, either locally or nationally

7. LIMITED COMPETITION
A media market with many producers and sellers but only a few differentiable products
This “monopolistic competition” effectively limits diversity of choices available to consumers

8. From Industrial Age to Information Age
centralized mass production --> decentralized service economy
cultivation of niche rather than mass markets
emphasis on information distribution and retrieval

9. Globalization
global cooperation and the breakdown of economic trade borders
globalization of corporations (multinational, transnational)

10. CHARACTERISTICS OF OUR INFORMATION ECONOMY
increased consolidation of media corporations: rise of mega corporations
flexible markets -- an “elastic economy” -- that produces expanded product selection but increased potential for failure
rise of specialized “niche” markets
economic “synergy” at international levels

11. Why has US Media Culture become Global?
media technologies are more portable
satellite technologies enable global access without any movement of product
moving US plants outside US borders allows recruitment of cheaper labor, especially in Third World nations
American media products (like TV shows) can be sold more cheaply than local products

12. Regulation and Deregulation of the Media Industries
based upon an interpretation of ANTITRUST laws enforced by the Federal Trade Commission and the Justice Department
since 1980s, the spirit of DEREGULATION has guided U.S. legislation, especially in communications industry
the rules are unevenly applied

13. MAJOR ANTITRUST LEGISLATION
SHERMAN ANTITRUST ACT of passed by Congress; outlawed monopoly practices that limited free trade
CLAYTON ANTITRUST ACT of 1914: prohibited exclusive sales arrangements
CELLER-KEFAUVER ACT of 1950: limited corporate mergers

14. Effects of Deregulation in the 1980s
loosening of antitrust restrictions, allowing businesses to form monopolies and oligopolies in certain industries
led to increased mergers, corporate diversification, and increased tendency toward oligopoly

15. The Disney Company Cartoons and Children’s Culture (1920-1950)
Corporate Diversification ( )
Media Consolidation (1984-present)

16. “In early debates [over the legitimacy of oligopolies in media] the political ideas of democracy became closely allied with the economic structures of capitalism. As one media historian has noted of the period, “by implicitly defining democracy in terms of equal access to consumer products, political and business leaders created the appearance of running a fair society in which everyone had equal access to power.”

17. How does the consolidation of media ownership affect you?
Do more consumer choices mean that we hear from more voices and perspectives?
What types of perspectives, sounds and images are NOT represented by the media oligopolies?