media as businesses 1. business organization 2. implications?
TRANSCRIPT
Media as Businesses
1. Business organization
2. Implications?
Media business: video clips
Entertainment Tonight Xena, Warrior Princess Hollywood Squares MTV
Facts about media Concentration Increasing Concentration Most people unaware Media ownership no longer LOCAL
Ownership increasingly trans-national
Issues, Concerns Power of media moguls
“Tomorrow Never Dies”Elliott Carver
Hidden agendas, conflicts of interest
Media globalization Internet immune?
How real an issue today? Big media dominate US, world
AOL, Time Warner merger AOL: world’s #1 provider of
online services Time Warner: one of world’s
largest traditional media companies
AOL Time Warner Leader in every major
media sector 78.3m Internet visitors 21% US magazine revenues 19% U.S. cable subscribers 13% of box office sales 16% music sales
What does the merger mean? Faster Internet service Interactive TV Online music Movies online Advertising, e-commerce New media amalgams Cross promotion
Concerns about merger Huge company Potential to dominate U.S.
media markets Power to exclude rivals FTC consent decree: new
company to facilitate competition
Other conglomerates? NBC: RCA/GE CBS: Viacom ABC: Disney UPN: Viacom Fox: News Corp. WB: AOL Time Warner
Global media giants1. AOL Time Warner ($41b)2. Disney ($24.8b)3. Vivendi/Seagram ($16.6b)4. Viacom ($14.9b)5. Bertelsman($14.8)6. News Corp. (14.1b)7. Sony ($10.8b)8. NBC/GE ($7b)
Media conglomerates National, international companiesAOL Time Warner, Viacom, News Corp., Gannett, GE
Puget Sound media
Types of ownership Governmental ownership or
funding Employees work for govt. Revenues: taxes, fees Profit? + Capital, not
commercialized - Government
Types of ownership Private ownership,
individuals or groups Revenues: sales Profit required + Competition,
independence - Commercialization,
independence
U.S. media: characteristics
Pvt. ownership, minimal govt. control
Media businesses Profit orientation Revenue: Ads, subscription
Advertising revenues
Medium $/ad revenues
Daily newspapersTV
Magazines
Radio
U.S. media: characteristics News= industry standards Competitive environment Economies of scaleUnit costs drop in mass production Economic efficiency/vertical
integration
Why concentration? FCC rules Media very profitable Existing profits Attractive to sell U.S. tax laws Concentration savings Synergy
+ on Concentration Economies of scale More resources, potential for quality
More public service Greater independence Greater investment
- on Concentration Fewer voices Private agendas Public unaware Synergy of dubious public
value Loss of family companies No longer local
Rupert Murdoch Danger to democracy? News Corporation Criticisms: Politics China Content Goals
Media business: video clips
Entertainment TonightPromotion of Viacom companies: VH1 Xena, Warrior PrincessProduction ending; no vertical integration Hollywood SquaresPromotion of CBS show MTVPromotion of Viacom products (CD, book,
play, movie)