Media Media ConglomeratesConglomerates

-Some nations can influence and control their media greatly. In addition, powerful

corporations also have enormous influence on mainstream media-

““We have no obligation to make We have no obligation to make history…history………We have no obligation to make We have no obligation to make art…art………We have no obligation to make a We have no obligation to make a statement…statement………To make money To make money isis our only objective.”our only objective.”

— — Michael Eisner, Michael Eisner, CEO, CEO,

The Walt Disney Co.The Walt Disney Co.

The Top Ten Media The Top Ten Media ConglomeratesConglomerates The Top Ten –The Top Ten – according to the latest polesaccording to the latest poles

– AOL Time Warner AOL Time Warner – Disney Disney – General ElectricGeneral Electric– News Corporation News Corporation – ViacomViacom– Vivendi Vivendi – Sony Sony – Bertelsmann Bertelsmann – AT&T AT&T – Liberty MediaLiberty Media

Going Global…Going Global…

Global conglomerates can at times have a Global conglomerates can at times have a progressive impact on culture progressive impact on culture – E.G. GOOGLE opening in china, it allowed the E.G. GOOGLE opening in china, it allowed the

Chinese access to the open internet which is Chinese access to the open internet which is different from the compartmentalized and different from the compartmentalized and extremely biased, government controlled mediaextremely biased, government controlled media

The global commercial-media system is radical in that The global commercial-media system is radical in that it will respect no tradition or customit will respect no tradition or custom

Milestones…Milestones…

1983

1987

1990

1997

Today

50

29

23

10

5

Number of

Year Leading Conglomerates

More Milestones…More Milestones…

In 1987 the biggest media merger in history In 1987 the biggest media merger in history was a $340 million dealwas a $340 million deal

By 2000 AOL Time Warner’s $350 billion By 2000 AOL Time Warner’s $350 billion merged corporation was more than 1,000 merged corporation was more than 1,000 times largertimes larger

-Most citizens get their views and -Most citizens get their views and understandings of the world around understandings of the world around them from the mainstream media- them from the mainstream media-

DisneyDisney

With the increasing size, owning the ABC news With the increasing size, owning the ABC news station, and enormous vertical integration, there station, and enormous vertical integration, there have been increasing criticisms of Disneyhave been increasing criticisms of Disney

From a business perspective, they have been From a business perspective, they have been very successful and implemented the most very successful and implemented the most “appropriate” strategies to expand and grow “appropriate” strategies to expand and grow

Newspapers GaloreNewspapers Galore

Defenders of narrowing control of the media Defenders of narrowing control of the media point to the large numbers of media outlets point to the large numbers of media outlets available to the populationavailable to the population– 1,700 daily papers 1,700 daily papers – 10,000 radio and television stations 10,000 radio and television stations – 11,000 magazines… and more11,000 magazines… and more

-There may be a large number of outlets giving the appearance of diversity, but a concern is that so many are owned by one of

the few media giants-

““With great power comes With great power comes great responsibility…”great responsibility…”

There is an argument to be made that only There is an argument to be made that only big media have power and influence to cover big media have power and influence to cover large institutions that dominate modern life large institutions that dominate modern life

But when big media is owned by big But when big media is owned by big business, there is less criticism of big business, there is less criticism of big business or political issues in big government business or political issues in big government

“… “… it’s a conspiracy …”it’s a conspiracy …”

Unfortunately, the large numbers deepen the Unfortunately, the large numbers deepen the problem of excessively concentrated controlproblem of excessively concentrated control

If the number of outlets is growing and If the number of outlets is growing and the number of owners declining, then each the number of owners declining, then each owner controls even more formidable owner controls even more formidable communications power communications power

““Small, independently owned papers routinely pull Small, independently owned papers routinely pull punches when covering local car dealers real estate, punches when covering local car dealers real estate,

and industry…and industry………Whatever its shortcomings and they are Whatever its shortcomings and they are

many…many………only big media possesses the means to only big media possesses the means to

consistently hold big business and big government consistently hold big business and big government accountable.”accountable.”

— — Dan Kennedy, Monopoly Money, Boston Phoenix, January 17, Dan Kennedy, Monopoly Money, Boston Phoenix, January 17, 20022002

The Quest for the InternetThe Quest for the Internet

The Internet is hailed as the new The Internet is hailed as the new communications medium taking over from communications medium taking over from television eventually television eventually

While there are currently enormous problems While there are currently enormous problems in the “digital divide” and while it is still in its in the “digital divide” and while it is still in its infancy, the Internet has allowed enormous infancy, the Internet has allowed enormous amounts of information to be exchanged and amounts of information to be exchanged and be made availablebe made available

““Welcome to the Twilight Welcome to the Twilight Zone…”Zone…”

Major web portals such as AOL look to “lock Major web portals such as AOL look to “lock in” their audience to their sites and products in” their audience to their sites and products to their customers to their customers

Furthermore, consolidations and media Furthermore, consolidations and media mergers such as that of AOL and Time mergers such as that of AOL and Time Warner, have skewed the “playing field” Warner, have skewed the “playing field”

The Times are ChangingThe Times are Changing

60 percent of all minutes spent online in the 60 percent of all minutes spent online in the US dwindled 87 percent, from 110 in March US dwindled 87 percent, from 110 in March 1999 to 14 in March 2001” due to successes 1999 to 14 in March 2001” due to successes in advertising and marketing as a key to in advertising and marketing as a key to overcome the barrier to online entry overcome the barrier to online entry

The Fantastic FourThe Fantastic Four

They further point out that within the 14 They further point out that within the 14 companies, it is heavily skewed towards the companies, it is heavily skewed towards the top four top four

Key factors driving media consolidation in Key factors driving media consolidation in this way include this way include – Mergers and acquisitions turning powerful Mergers and acquisitions turning powerful

companies into even more powerful media companies into even more powerful media behemothsbehemoths

The Mainstream RevolutionThe Mainstream Revolution

The rise in blogging and other forms of social The rise in blogging and other forms of social media on the Internet has enabled people to media on the Internet has enabled people to report more quickly about events report more quickly about events

Local people are able to upload personal Local people are able to upload personal videos from mobile phones faster than videos from mobile phones faster than mainstream journalists can reportmainstream journalists can report

Some journalists are concerned about their Some journalists are concerned about their profession’s future, the impact of “citizen profession’s future, the impact of “citizen journalism” is going to have on themjournalism” is going to have on them

Conclusion….. Conclusion….. CongratulationsCongratulations

Mainstream Media Conglomerates started Mainstream Media Conglomerates started forming and evolving as far back as 1983forming and evolving as far back as 1983

In less than twenty years what was 50 In less than twenty years what was 50 companies fighting and vying for power were companies fighting and vying for power were consolidated into 10consolidated into 10

Of those 10 the top three consist of 60% of the Of those 10 the top three consist of 60% of the marketmarket

You win a BRAND NEW You win a BRAND NEW RECIEPTRECIEPT

Major companies such as Disney and AOL Major companies such as Disney and AOL have slowly “bought out” and merged with have slowly “bought out” and merged with every major media company in the wayevery major media company in the way

Until blogging, allowed everyone with Until blogging, allowed everyone with Internet and a keyboard to post events as Internet and a keyboard to post events as they happenedthey happened

(You can claim reciept with next purchase of anything from any store at any time… good deal huh)