ACCESS

• Can anyone “own” information?

• Who has access to this information?

• What are the barriers to entry?

• What are the implications of media concentration?

• How has the Internet changed ownership?

• From the Digital Divide to the Participation Gap

“It’s not My Fetish, I swear”“Go Ahead, Waterboard Me”“Caught Wet and Half Naked”“Sir, don’t you realize the water in the mall fountains is only 2 feet deep…and the $250 you collected will cover only 2% of your court fees”“Learning from the past, right-wing terrorists come prepared for waterboarding”But your honor I’m wearing my best suit”

“That Johnny Potatoes sure shouldn’t have worn his bathing to court”“I get the feeling that I left my coffee on the roof”“21st Century Men in Black relying on old definition of illegal alien”“That’s smart, Eddie. The first place cops look is in the trunk.”“I feel like we forgot to do something Tony…”“At least I’m not wearing a Jets Jersey”

“Quick, what’s the score,…damn I can’t believe I missed that pass”“Why can’t I escape these bars?”“After that stint, I couldn’t sit down even if you had a barstool…”“Are you guys hiring?”“Most men drink to escape. I escape to drink.”“When the Warden finds out I’m gonna be in a HOLE lot of trouble”

Regulators vs. De-Regulators

&

MR. MEDIA

you

Mr. Media Grows

Mr. Media Grows

FOUNDATIONS OF THE EXPLORATION

• Who are the big Media Companies, and what are the implications of their growth?

• Do we (citizens) really have a voice? If so, what does it sound like?

Who is Mr. Media?

Can you name the 6 media conglomerates that own and operate over 75% of the mass media messages you see today?

World’s Largest Media companies (total revenue in 2008)

Company Revenue (in Billions)

• General Electric $183*• Walt Disney Co. $37.8• News Corporation $33• Time Warner $29.8• Viacom $14.6• CBS $14

* approx. 25 USbillion revenue from media ventures

Table 1: World’s Largest Media Companies

Source: FreePress Ownership Chart: http://www.freepress.net/resources/ownership

How Do they Grow?

• 1996 Congress passes Telecommunications Act.

• FCC continues to ease ownership regulations.

1. Merge & Acquire

Merger Media

Approximate number of daily newspapers in North America

1800

Approximate number of magazines in North America 11,000

Approximate number of radio stations in North America

11,000

Approximate number of television stations in North America

2,000

Approximate number of book publishers in North America

3,000

Number of companies owning a controlling interest in the media listed above in 1984

50

Number of companies owning a controlling interest in the media listed above in 1987

26

Number of companies owning a controlling interest in the media listed above in 1996

10

Number of companies owning a controlling interest in the media listed above in 2002

6

2. Synergy & Branding

Synergy

Definition: refers to the dynamic in which components of a company work together to produce benefits that would be impossible for a single, separately operated unit of the company

Branding

If a brand is associated with a quality or image that a consumer likes, the consumer tends to choose the branded version of a traditional product or to try a new product from the same brand

Branding

• Spin offs: ESPN2, ESPN News, ESPN Classic

• Publication: ESPN, the magazine

•Web site: espn.com

•Retail outlet: ESPN, the Store

•Sport-themed restaurant: The ESPN Zone

Owned by…

• Domestic markets are saturated with media products, so companies see international growth as key

• Media conglomerates are in effective positions to compete with – and dominate – local media in other countries

• By distributing existing media products to other countries, media companies can add revenue at little cost

Growth/Expansion Globally

3. Globalization

One product, that is adapted to be viewed in the following countries: …

GlobalizationIndia, Sri Lanka, Bangladesh, Nepal, Pakistan, Japan, Brunei, South Korea,

Philippines, Singapore, Taiwan, Thailand, Indonesia, Malaysia, Vietnam, Hong Kong, Papa New Guinea, Australia, New Zealand, Brazil, UK, Ireland, Austria, Germany, Switzerland, Belgium, France, Greece, Israel, Romania, 30 territories including: Russia, Middle East, Egypt, Faroe Islands, Liechtenstein, Malta, Moldova.

And…Sweden, Denmark, Norway, Finland, Italy, Bolivia, Caribbean, Central America, Colombia, Ecuador, Mexico, United States (select Hispanic markets) Venezuela, Argentina, Chile, Paraguay, Peru, Uruguay, Russia, many countries in Africa…and on and on and on: totaling MTV being tailored for viewing in:

164 Countries!

Cultural imperialism

4. DEREGULATION Markets and the General Electric

Conundrum…

World’s Largest Media companies (total revenue in 2005)

Company Revenue (in Billions)

1. General Electric $157.2*2. Time Warner $43.73. Walt Disney Co. $31.94. News Corporation $23.95. Bertelsmann $22.26. CBS $14.57. Viacom $9.8

* 14.7 USbillion revenue from media ventures

Table 1: World’s Largest Media Companies

Source: FreePress Ownership Chart: http://www.freepress.net/ownership/chart.php

General Electric owns these

And they also own

Military Production: Manufactures and maintains engines for the F-16 Fighter jet, Abrams tank, Apache helicopter, U2 Bomber, Unmanned Combat Air Vehicle (UCAV), A-10 aircraft, and numerous military equipment including planes, helicopters, tanks, and more.

GE COMMERCIAL FINANCE GE HEALTHCARE GE ADVANCED MATERIALS GE INFRASTRUCTURE

GE CONSUMER & INDUSTRIAL GE INSURANCE

GE MONEY GE TRANSPORTATIONGE ENERGY

What are the ethical implications of GE’s portfolio of companies?

• Is there autonomy across their sectors of business?

• Can they maintain neutrality with their portfolio?

• How do their holdings help them produce information?

Markets vs. the Public Sphere

A comparison of models

The Market Model

“society’s needs can best be met through a relatively unregulated process of exchange based on the dynamics of supply and demand. This model treats the media like all other goods and services” (15).

“media” Markets promote _______________?

• Efficiency

• Responsiveness

• Flexibility

• innovation

Types of Competition

A. Homogenized Monopoly

B. Diverse Monopoly

C. Homogenized Competition

D. Diverse Competition

….Oligopoly

The Public Sphere

“media are more than simply profit-making components of large conglomerates. Instead, they are our primary information sources and storytellers” (20).

Jurgen Habermas

[his] “model posits an open mass media system that is widely accessible. It argues that information should circulate freely, without government intervention to restrict the flow of ideas…fundamentally the public sphere views people as citizens rather than consumers. Furthermore it contends media should serve these citizens rather than “target” potential consumers” (20).

For the Public Sphere:

• Markets are undemocratic

• Markets reproduce inequality

• Markets are amoral

• Markets do not necessarily meet social needs

• Markets do not necessarily meet democratic needs

Are the media different than Other Industries?

Why markets may not work in this model….

• Advertising and the Media – a “dual product” market…

• Civic resources – media are the bridge to democracy and education…how can they be products?

• Legal – Media enjoys special legal protection (1st Amendment: “congress shall make no law … abridging the freedom of speech, or of the press”)

“Profit seeking and public service are not either/or propositions. Instead, the civic responsibilities of media have historically been met within the framework of commercial business…[in the 80s] that delicate balance shifted even further in favor of pursuing greater profits over concern of public service” (31).

What is the Public Interest?

Market – Whatever the public is interested in

Sphere – Media responsibility to….

a. Promote diversity (Avoid homogenity)

b. Provide Substance (w/out Elitism)

“The media’s role in facilitating democracy and encouraging citizenship has always been in tension with its status as a profit making industry…” (38)

Which side do you fall on?

What do we need to make media serve us in reliably,

independently and credibly?