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I NTERNATIONAL B ACHELOR C OMMUNICATION AND M EDIA

I NTERNATIONAL B ACHELOR C OMMUNICATION AND M EDIA. CH3028 Media Processes & Influences Media Production Rhythma Kapoor Seminar 2. CONTENTS. Production perspective to media Media concentration and conglomeration Profit-driven logics of media production Effects of advertising

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I NTERNATIONAL B ACHELOR C OMMUNICATION AND M EDIA

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  1. INTERNATIONAL BACHELOR COMMUNICATION ANDMEDIA CH3028 Media Processes & Influences Media Production Rhythma Kapoor Seminar 2

  2. CONTENTS Production perspective to media Media concentration and conglomeration Profit-driven logics of media production Effects of advertising Political factors Media Regulation Debate Regulation of Ownership Regulation of Content and Distribution Informal Pressure

  3. A Production Perspective on Media Economic Perspective • Study of media production within the economic constraints • Media products are a result of social and economic processes

  4. Economic factors - Trends in Ownership Concentration of ownership What does it mean? How was it possible? Which are the ‘big four’? What are effects and consequences? 2. Integration vertical and horizontal

  5. Concentration of ownership

  6. Changing Patterns of Ownership • Concentration of Ownership • Today, only a handful of firms dominate the mass media industry • Magazines • Newspapers • Movies • Book publishing • Music • Online services

  7. Number of Firms that Dominated the US Mass Media

  8. Media Ownership- USA 2012

  9. Changing Patterns of Ownership The BIG FOUR (USA): • Time Warner / • The Walt Disney Company / • Viacom / • News Corporation / Europe: Bertelsmann AG So, what does this imply? “This gives each of the five corporations and their leaders more communication power than was exercised by any despot or dictatorship in history” (Bagdikian 2004: 3)

  10. Bertelsmann (TV/radio stations) • 53 TV channels and 29 Radio stations in 10 (European) countries   • Its TV channels reach around 170 million viewers in Europe

  11. Bertelsmann (TV content production) • produces and sells 9,200 hours of TV programming per year across 58 countries • more than 300 programmes on air or in production worldwide

  12. How does ownership take place? through regulation/legislation through mergers, acquisitions through conglomeration & integration

  13. Media Conglomeration & Integration • Conglomeration: • Media companies have become part of much larger businesses. • -multinational • -diverse business areas • Integration: • -horizontal • -vertical

  14. Conglomeration Firms become involved in a variety of diverse business activities.

  15. Vertical Integration Cross-industry ownership, or the degree a single firm owns its upstream suppliers and its downstream buyers. Here one firm engages in different aspects of the process,from production to distribution. Example: a firm hires an artist, records them, distributes them on stations they own and features them in clubs they own.

  16. Vertical Integration Journalists Newspaper Business Editors Paper Mill and printers Distributors Integrate all aspects of mediaproduction and distribution. Top-down control

  17. Horizontal Integration Consolidation of many firms that handle the same part of a production process. When a firm buys out other firms doing the same thing, it is seeking horizontal integration. It seeks to increase its share of the market. Most anti-trust laws are aimed at horizontal monopoly. Example: When MTV’s Viacom buys other cable channels, magazines, and other distributing means it is seeking horizontal integration in distributing.

  18. Horizontal Integration across the media Time Warner Time, People, Enter. Weekly Warner Bros Pictures Warner Music Group Online Services Cable Networks Moviefone

  19. Consequences of Conglomeration and Integration • Integration and Self-Promotion • increase of products suitable for cross-promotion, self-promotion • difficult for small companies to compete • Synergy • Cost minimization • Profit maximization • Impact of Conglomeration • “Hollywoodization” of news

  20. Consequences (contd.) • Media Control and Political Power • Concentrated media ownership often leads to political power • Media outlets may promote specific political agenda of the owner • Media barons can easily become influential politicians • Media Owners’ Influences on Media Contents • FOX TV & political coverage

  21. Consequences (In)direct political consequences promoting a political agenda political resource excluding certain ideas to avoid controversy corporate voice Example 1: GE refused to let NBC report on GE corruption in the nuclear industry. Example 2: Big Media has yet to cover the Iraq invasion from anything but a moderate or a right- wing perspective.

  22. Consequences (contd.) • Media Ownership and Content Diversity • The Homogenization Hypothesis • Media owned by a few lead to products that lack diversity.

  23. Mass Media for Profits • Prime-Time Profits • Logic of Safety and Profits • Economic considerations lead to similar programs across networks • Cost minimization logics lead to proliferation of a certain type of programs • Effects on News Media • Scaled-back international news coverage • Entertainment-oriented news

  24. Impact of Advertising • Growing Advertising Influences • Product placement • Product integration • Branded entertainment

  25. The Impact of Advertising Advertising as a key source of revenue example: product placement

  26. Consequences of Advertising commodification of the audience adaptation of content Corporate voice Cross/ self promotion

  27. Media and regulation

  28. The Public Interest and Regulation Debate • Media deregulation approach • Free market principle • Deregulation is actually “selective” regulation • Media regulation approach • Public interest principle • Regulations in international perspective • United States is typically more “deregulation” oriented • In many European countries, media are public owned

  29. The Issue of De-Regulation Big Media claims that de-regulation brings freedom and diversity to the market. In fact, it has done the opposite. This is because de-regulation has allowed large corporations to concentrate, eliminating smaller media outlets. This brings monopoly and oligopoly, which violate the public interest.

  30. The Telecommunications Act (1996) Milestone media regulation • Easing of restrictions through deregulation • Changed limits on the number of media outlets a single company can own • Increased concentration of ownership • Criticism: May be detrimental to free flow of ideas

  31. Regulating Ownership of Programming Federal Communications Commission oversees: TV (cabel and satelite) Radio Broadband Internet broadband, mobile networks, wireless networks.

  32. Regulating Content: 4 Dimensions Diversity Morality National Interest Accuracy

  33. Regulating for Diversity Regulations asking media companies to provide diverse perspectives Regulation on programming, media-access

  34. Regulating for Morality • Concerns for sex and violence in media • Obscene vs. Indecent materials • Obscene material is illegal • Indecent material is legal, but limited • Controversies in definitions • 3-pronged test to determine obscenity

  35. Regulating for Accuracy Protect the public against fraudulent or deceptive advertising Regulating ads for potentially dangerous products

  36. Regulating Content Diversity: regulation on programming, media-access Morality: self-regulation, censorship National Interest: press pool, pr Accuracy: laws on advertising time devoted to ads and infomercials

  37. Regulating for National Interest • Government control on press coverage of war • Vietnam war case • The press pool system (aka Embedded journalism) • Government controls and manages the flow of information • Government control resulting from terrorism • USA PATRIOT Act • Increased the ability of law enforcement agencies to search email and telephone communications

  38. Industry Self-Regulation Industry self-regulations to avoid external control • Motion Picture Association of America (MPAA) ratings system (1968) • G • PG • PG-13 • R • NC-17

  39. Net Neutrality • A recent media technology regulation issue • One of the most important and controversial media policy issues • Preserving open access to the Internet and a level playing field for all websites • Often hard to implement the true ideal of net neutrality in reality

  40. Regulating content on Internet AT&T the largest mobile network provider in the US, with more than 100 million users. - has blocked for its iPhone/iPad users access to video calling App FaceTime (costs of app 0,89 €) - to still use the App, users first have to subscribe for the expensive service (having unlimited minute bundle, costs annually extra 1000$ annually)

  41. Freedom of Press

  42. Influence from Nongovernment Sources • Political role played by other actors • Directly influencing the media • Prompting government to act on media • Players in the debates over the media • Media critics and think tanks • Citizen activists • Media advocacy organizations

  43. Conclusion Economic and Political factors are (partly) interdependent have an impact on form and content differ per medium

  44. Next Week Seminar 3 –Media Ideology Readings: Croteau& Hoynes Chapter 5 (pp.153-184) Hirschorn,M. (2007)

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