Media - Media Ownership Flashcards
How has ownership of the media changed?
- In 1983, 90% of American media was owned by 50 companies
- In 2011, that same amount of media was owned by 6 companies - Disney, CBS, NBC and others
- White men own over 65% of the media
- Pluralists argue that increasing media concentration is positive - follow a hegemonic / instrumentalist Marxist view with the idea of the market model approach
Bagidikan (2004) on new Media ownership
- If the USA’s media were owned by separate individuals there would be around 25,000 owners
- Bagdikian (1989) ‘Lords of the Global Village’ – even 25 years ago the concentration of media ownership meant that a handful of global media companies and moguls dominated the world’s mass media.
- This means they controlled every step in the information process, from creation of the product to all the various means by which modern technology delivers media messages to the public.
- in 1983, 50 companies controlled the vast majority of all news in the USA.
- However, by 1992, 22 companies owned and operated 90% of the mass media - controlling almost all of the USA’s newspapers, magazines, TV and radio stations, books, records, movies, videos etc.
Trends in media ownership in the UK
Who owns the UK Media?
- This report, published in March 2021, shows that just three companies (News UK, Daily Mail Group and Reach) dominate 90% of the national newspaper market (up from 71% in 2015)
What has made the change in media ownership possible? (1-5)
Conglomeration -
- One huge company owns a wide variety of products within the media and beyond; Virgin
Technological convergence -
- Combine different media technologies in one single device.
- Apple Products, Smart TVs
Concentration -
- Internet providers, social networking and content of digital media are increasingly being brought by the companies that document the old media
- Disneyfication
Conglomeration and diversification:
- Globalisation has opened up new international markets away from the origin country, particularly with new media such as smartphones and the internet
Synergy -
- Media transnationals using their diversity to package the same product in several different ways, increasing profits as a result e.g. a film and a soundtrack, or film adverts in newspapers - franchise
- Ghost, Twilight or Harry Potter
What has made the change in media ownership possible? (6-8)
Vertical integration -
- Refers to the increasing trend of media multinationals to control all levels of media production. Vertical integration therefore gives media multinationals greater economic control over their operating environment as they control production from beginning to end
- BBC, News Corp owns TV and film studios as well as the channels that show them
Horizontal integration -
- Bigger media companies often own a range of different types of media outlets, spreading economic rise as losses in one area are compensated by profits in the other
- News Corp owns Australian and British newspapers and also owns Harpercollins and a chunk of Sky TV
Global ownership / conglomeration -
- Become global and a small number of media companies transformed into transnational conglomerates that monopolise ownership of a diversity of media across dozens of countries.
- Media companies have taken advantage of the erosion of traditional boundaries surrounding media markets.
- Globalisation has opened up national markets and has created international competitions between media companies.
- News Corp
Lateral expansion - Lateral expansion occurs when firms diversify
4 features of media ownership concentration
4 distinct features:
- Ownership within a single medium e.g. Company owning several newspaper,
- Owners have an interest in a range of media such as newspapers, magazines, book publishing, the film industry,
- Ownership is international: owners have media interest in many different countries,
- Media conglomerates: companies that have a range of interest in a wide rage of interest in a wide variety of products besides the media. For example Virgin also has an airline, train company, soft drinks, mobiles phones etc
- Curran (2003) - British experience
Diversification of a media business case study
DMGT’s moves to higher margin digital:
- DMGT’s consumer national media division, now called DMG Media and including The Daily Mail, Mail on Sunday and Metro, have gone through the that familiar partial transition from print advertising to digital.
- The division has seen revenue decline by around 15 percent, operating profits have increased 20 percent. It’s the definition of doing more with less.
- DMG Media made £820 million in 2012, three percent higher than in 2011,while £150 million of that was from digital, a rise of 34 percent year on year.
- DMG is quite diverse, including healthy homes and jobs classifieds businesses, but Mail Online, which didn’t exist in 2007 and now makes £45 million a year, is a significant contributor.
Effects of the new media on traditional media
- Synergy - New Media supports and interacts with traditional media. Eg: Newspapers often refer readers to their website
- Decline - newspaper sales have declined dramatically in the past 20 years and there is a decline in viewing figures for TV news.
- Increase - Web traffic has increased, and all major TV channels, magazines and newspapers have websites.
- Convergence - There is a joining together of traditional and new media formats.
- Cheaper - more accessible for all
- Expansion of ‘live’ coverage - traditional forms are quickly outdated
- New media creates traditional media - Citizen journalism, bloggers etc are used for traditional media stories
- Criticism - challenge to mainstream views and reports
- Interactive - audience are able to feedback on traditional media stories via social media
Is media concentration a problem?
Doyle (2002)
- Concentration should be studied to ensure that media is diverse and a pluralist view is heard.
- Concentration of media ownership is dangerous as abuses of power can go unnoticed.
- Concentration of ownership is a threat to democracy.
6 ways ownership has concentrated:
1) Vertical integration
2) Horizontal integration
3) Lateral expansion
4) Synergy
5) Technological convergence
6) Global conglomeration
What do pluralists think of new media ownership?
Modern capitalist societies are democratic, as all interest groups are given a media platform with the most persuasive being voted into power. The mass media is therefore essential and impartial to the democratic ideal, as most people obtain their political knowledge from these sources
- Power in society is spread among a wide variety of interests groups and individuals with no single one having a monopoly of power.
- Media content is driven not by a dominant ideology or the political interests of owners, but by the fight for profit through high circulation and audience figures.
- Wide range of competing newspapers, magazines, television channels, websites and ideas, including those which challenge the dominant ideology.
- Control is in the hands of the consumer – they choose what to read and watch. Owners respond to the audience’s tastes and wishes as they are following the money.
- There is a lot of competition and variety in media content and this prevents owners from dominating the media.
- Regulators prevent owner dominance as well.
- Journalists have professional and editorial honesty and independence. They select a wide selection of views, using news values to maintain and satisfy their audience.
Pluralist view of the new media - media concentration is not an issue because of - The Market Model
- Free market and pursuit of profit will always have priority over media influence of political views - media owners compete in a free market to attract consumers, and so consumers hold sovereignty as they choose the success of products
- Market determines content and products, not the owner - Blackberry v Apple
- The global modern marketplace is segmented - variety of products for different markets and this diversity combats influence on mass audience - products are also tailored to specific groups, and this empowers the consumer
- Economic rationality - media products are expensive to produce, and so concentration maximises audience, reduces cost, and conglomerates and globalisation that have resulted simply attempt to expand this audience and profit
- Pluralists maintain processes of vertical and horizontal integration, lateral expansion and convergence look to reduce cost and expand profit
- Whale (1997) - media owners have global problems of trade and investment to worry about, not the details of influencing audiences politically
Pluralist view of the new media - media concentration is not an issue because of - The Democratic Mirror
- Range of products is diverse and all democratic views are catered for - if some have a greater media representation than others, it is not bias
- The media simply mirrors what the audience wants to see or considers important
- For example, political scrutiny - owners, editors and journalists are simply reporting what is of current public concern
Pluralist view of the new media - media concentration is not an issue because of - Public Service Broadcasting
- Media outlets controlled by the state are impartial, and the BBC is legally obligated to provide specific services of information, education, and entertainment for all audiences
- Reviews of the BBC have stated the importance of news impartiality in reporting - educational for all segments to help create informed political decisions, and pluralists see PSBs as impartial and objective media
- However, some suggest that PSBs are losing their aims as it loses audience to commercial TV, and this has created populist and commercialised BBC and ITV services ; some pluralists argue that this is a rational response that is good for audiences, as it results in more choice
Pluralist view of the new media - media concentration is not an issue because of - State control
- In some countries, governments do not allow owners to have too many or too different types of media to prevent dominance
- Many countries, like the US, have cross-ownership rules to prevent companies owning more than one media form in the same area
- Ofcom imposes requirements on the BBC and ITV by monitoring the quality of its media output and investigating complaints
- Pluralists argue that this combination of audience and regulators prevents media owners imposing biased content on the public
Pluralist view of the new media - media concentration is not an issue because of - Media professionalism
- State editors and journalists are professional to avoid comprising independence
- Journalists have too much integrity to be biased - media also has a strong trend of investigative journalism to target those in power e.g. Nixon Watergate Scandal in 1972
- UK newspapers have also uncovered high level corruption and forced resignations of politicians, and so the media consistently works for the people
Formal regulation of the media in the UK - The Law
- Restricts media freedom to report anything they choose in any way they like
- The laws of libel - forbid publication of false statements about a person that brings them into contempt, ridicule, dislike or hostility in society
- Official Secrets Act - criminal offence to report with authorisation any official government activity which the government defines to be an ‘official secret’
- Defence and Security Media Advisory Notices or DMSA Notices are issued by the government as requests to journalists not to report defence or counter-terrorist information which the government finds damaging to national security
- The Racial and Religious Hatred Act (2006) and Equality Act (2010) - forbids expression of opinions which encourage discrimination or hatred towards any group based on the religious beliefs or ethnicity
- Obscene Publications Act (1959) - forbids publication of anything a court considers to be obscene or indecent, and likely to deprave or corrupt persons who read, see or hear it
- Contempt of Court provision prevents the reporting, expression of opinions or publication of material about cases which are in the process of being dealt with in a court of law and which is likely to jeopardise or prejudice fair trial