COMS305: Media and Economics

Mass Media

Production perspective:

•Media are the result of social processes of production that occur within an institutional framework.

Mass Media

Production perspective:

Media Ownership

Concentration and conglomeration:

Media Ownership

Indy or ‘mass’ media?•Different imprints under the same umbrella label:

e.g. Random House: Vintage/Anchor Books, Double Day, Golden Books, Bantam Dell, etc…

Media Ownership

Who own the media?•There are wildly contrasting opinions.

Media Ownership

Trending towards a…

Media OwnershipConglomeration:•Media become part of larger corporations in diverse areas

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Media OwnershipVertical integration:•One owner acquires all aspects of the production and distribution of a certain media product.

Media OwnershipVertical integration:•Google AdWords:

Google search engine AND network of AdSense affiliate websites AND advertising agency.Advertisers buy US$28 billion/year ads directly from Google through the AdWords Platform.

•Does vertical integration benefit the consumer?

Media OwnershipHorizontal integration:•One company buys different kinds of media, concentrating ownership across different types of media, e.g. AOL (watch the ‘AOL media’ video)

Media OwnershipHorizontal and vertical integration are generally combined:

Consequences of Conglomeration

The creation of media products that can best be exploited by other sections of the

conglomerate is prioritised.

Angels and Demons official Travel Tour

Consequences of Conglomeration

The Happy Meal™

Consequences of Conglomeration

Profitable news•Focus on entertainment•MBAs as editors

Consequences of Conglomeration

Mega newspapers•Drawing on corporate advertisers•But is profitability the correct measure forcreating quality news?

Consequences of Conglomeration

Ideology:•What positions are included and excluded?•The corporate voice:

CapitalismThe stock market

Consequences of Conglomeration

Political power:•Media owners as politicians

Silvio BerlusconiRupert Murdoch

Consequences of Conglomeration

Joint-operating agreements:•Shared facilities between media:

e.g. Seattle Times & Seattle Post Intelligencere.g. Nokia & WinPho7

Consequences of Conglomeration

•Examining diversity in content (Entman 1989)

Vertical diversityRange of actors mentionedRange of disagreement found

Horizontal diversityDifferences in content between media

Consequences of Conglomeration

Entman’s results:•Content similar across ownership

Narrow range of actorsSmaller disagreement

No diversity at all!

Profit Motive

The news:•Decreased numbers of journalists•Joint ownership agreements•More wire service reports•Preplanned events•Reduced rural coverage

Profit Motive

The news:•Video News Releases (VNRs)

Video version of a traditional news release

VNR TV

Profit Motive

The news:•A decrease in long-term investigative reporting…

Profit Motive

The news:•Decreased levels and depth ofanalysis

Profit Motive

The news:•Continual use of the same (often elite) sources

Profit Motive

The Possible ramifications:•The focus shifts to marketing•Similarity between news outlets

Profit Motive

Possible ramifications:•Reduced understanding of international affairs•Increased interest in ‘scandal’

Profit Motive

Possible ramifications:•Increase in fabrications?

e.g. Blair e.g. Glass

Profit Motive

Possible ramifications:•Increase in sensationalism

Profit motive

Advertising’s historical influence:•Removal of the radical press•‘objectivity’ stemmed from the shift from partisan presses to corporate advertising-supported news

Profit Motive

Advertising’s influence:•Provides both incentives and constraints on content:

•40% of journalists report self-censorship•Chrysler reviews potentially damaging stories

•See also previous link to video about journalists an Monsanto

•Reporting to higher-income classes

Consequences of concentration

Modern music:•Industry-wide consolidation•Internet theft•Artistic draught

Profit Motive

Inside Prime Time (Gitlin 2000)•Programming decisions driven by profit

•Most shows fail•The few hits carry all else

Profit Motive

Inside Prime Time (Gitlin 2000)•Logic of safety, no controversy

•Repeat, repeat, repeat, ad infinitum…

Profit Motive

Inside Prime Time (Gitlin 2000)•Lower costs

•Newsmagazines and reality TV

Profit Motive

Advertising impact•The product sold is the AUDIENCE•The audiences are seen as CONSUMERS

Profit Motive

Advertising sold in places not seen before•Roughly one third of a typical movie contains product placements

Modern Advertising

Product placement•A long-used practice, but increasing in efficiency and omnipresence

Profit Motive

Co-sponsorship = ultimate•Does sponsorship influence content?

Profit Motive

Is advertising and product placement effective? e.g.‘Sideways’

•Pinot Noir sales up 22%•Blackstone Pinot Noir up 150%•Tourism to California wine region up 30%

Profit Motive

But is it really effective?•More people smoke on screen than in real life

Profit Motive

The success of Apple™

Profit Motive

The success of Apple™

Profit Motive

The success of Apple™

Profit Motive

The success of Apple™

Profit Motive

The success of Apple™

Profit Motive

Unregulated product placement•Some advocate the use of subtitles to alter audiences to paid appearances

Profit Motive

Unregulated product placement•Some advocate the insertion of a slide at the beginning of the film

Profit Motive

The brand is interwoven into the plot

Profit Motive

Hollywood argues that the use of real brands is important to maintain realism•‘Without them, the films look fake’

Profit Motive

Advertisements in places not seen before•Book deals

•e.g. The Bulgari Connection

Profit Motive

Advertisements in places not seen before•The classroom

•e.g. Channel One

Profit Motive

Advertising’s influence•Broadcasting or mass communication to narrowcasting

Profit Motive

Music•Music videos as advertising•Video direction not artistic but commercial

Profit Motive

Advertising influence•Gated communities

•Speak only to those you want to•See only what you want to see•Hear only what you want to hear

Profit Motive

Advertising influence•All communication looks like a sales pitch

Profit Motive

Advertising influence•Dispersed and omnipresent