1. Chapter 13 – Media Economics and the Global Marketplace While these slides were created using material from the above textbook, they are not official presentations from the publisher, Bedford/St. Martin’s. In addition, many slides may contain professor’s supplemental notes on various media topics.
2. “From monetary exchange perspective, the relationship of our mass media system to politics is highly functional. From a democratic perspective, the relationship of our mass media system to politics is highly dysfunctional.” -Media & Culture
3. In This Chapter… Collecting Money Consequences of Deregulation Cultural Imperialism Media Marketplace and Democracy
4. Collecting Money How do you contribute to the multi-BILLION dollar media game?????? You give your TIME and MONEY! Directly – by buying media products directly—books, magazines, DVDs, Internet or cable subscription, movie tickets, etc. Indirectly – by buying advertised products. Who Owns What? www.cjr.org/tools/owners Many forms of mass media—generaterevenue both directly and indirectly—like magazines or cable companies. They charge subscriptions and sell advertising.
5. Consequences of Deregulation Fewer government rules about ownership led to media companies’ consolidation and merger frenzy—leaving us with an oligopoly. This means fewer people in control of powerful media companies. Deregulation - relaxing government rules on how much “property” one company can own. Telecommunications Act of 1996 anyone? Time Warner Walt Disney News Corporation NBC Universal (General Electric Co.) Viacom
6. Deregulation = Media Mergers Disney bought ABC for $19 billion in 1995. Time Warner bought Turner Broadcasting for $7.5 billion in 1995. Time Warner merged with AOL—a $106 billion deal—in 2001 only to spin the company off by 2009. AT&T cable joined Comcast in 2001 in a $72 billion deal. AT&T would quickly leave the merger, selling its cable holdings to Comcast for $47 billion late in 2001. Comcast purchased a majority stake in NBC Universal in 2009
7. What Time Warner Owns (selected) • Warner Bros. Television Group – Warner Bros. Television – Warner Bros. Animation – The CW Network Movies • Warner Bros. Home Entertainment Group • Warner Bros. Pictures • Warner Bros. Pictures International • Warner Bros. Theatre Ventures – Cooking Light – Health – Southern Living Television/Cable • HBO – HBO – Cinemax • Turner Broadcasting System – Cartoon Network – CNN – HLN – TBS – TCM – TNT Books/Magazines • DC Comics • MAD Magazine • Time Inc. – Entertainment Weekly – Essence – InStyle – Money – People / People en Español – Real Simple – Sports Illustrated – Teen People – This Old House – Time • Southern Progress Corporation – Coastal Living
8. Cultural Imperialism “Unlike American automobiles, television sets, and machine tools, American cultural products—movies, TV programs, videos, records, cassettes, and CDs—are sweeping the globe.” - Richard J. Barnet and John Cavanagh, Global Dreams Cultural Imperialism: the phenomenon of American media, fashion, and food dominating the global market and shaping the cultures and identities of other nations. Why is our media so popular worldwide? The notion of freedom associated with innovation and rebellion in American culture has been embraced internationally. Our media exports have created a “global village” and promote consumerism worldwide.
9. Cultural Imperialism – Questions: Questions cultural imperialism raises: What small country can justify building a competing media system if American programming is cheap? How do people feel when they are bombarded with products they can’t afford to buy?
10. Media Marketplace and Democracy Politicians in Washington, D.C., regularly accept $$$$ from large media conglomerates. Those conglomerates are pushing for more deregulation and enables them to grow larger and be subjected to fewer civic rules. These media companies control much of the news operations in the world—why would they report on the issues of media ownership and control? Do you care who owns the media?
11. Final Thought: “The top management of the networks. . .has been trained in advertising, research, or show business. But by the nature of the corporate structure, they also make the final and crucial decisions having to do with news. . .Frequently they have neither the time nor the competence to do this.”—Edward R. Murrow
