media as businesses 1. business organization 2. implications?
TRANSCRIPT
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Media as Businesses
1. Business organization
2. Implications?
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Media business: video clips
Entertainment Tonight Xena, Warrior Princess Hollywood Squares MTV
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Facts about media Concentration Increasing Concentration Most people unaware Media ownership no longer LOCAL
Ownership increasingly trans-national
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Issues, Concerns Power of media moguls
“Tomorrow Never Dies”Elliott Carver
Hidden agendas, conflicts of interest
Media globalization Internet immune?
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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
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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
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What does the merger mean? Faster Internet service Interactive TV Online music Movies online Advertising, e-commerce New media amalgams Cross promotion
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Concerns about merger Huge company Potential to dominate U.S.
media markets Power to exclude rivals FTC consent decree: new
company to facilitate competition
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Other conglomerates? NBC: RCA/GE CBS: Viacom ABC: Disney UPN: Viacom Fox: News Corp. WB: AOL Time Warner
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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)
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Media conglomerates National, international companiesAOL Time Warner, Viacom, News Corp., Gannett, GE
Puget Sound media
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Types of ownership Governmental ownership or
funding Employees work for govt. Revenues: taxes, fees Profit? + Capital, not
commercialized - Government
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Types of ownership Private ownership,
individuals or groups Revenues: sales Profit required + Competition,
independence - Commercialization,
independence
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U.S. media: characteristics
Pvt. ownership, minimal govt. control
Media businesses Profit orientation Revenue: Ads, subscription
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Advertising revenues
Medium $/ad revenues
Daily newspapersTV
Magazines
Radio
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U.S. media: characteristics News= industry standards Competitive environment Economies of scaleUnit costs drop in mass production Economic efficiency/vertical
integration
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Why concentration? FCC rules Media very profitable Existing profits Attractive to sell U.S. tax laws Concentration savings Synergy
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+ on Concentration Economies of scale More resources, potential for quality
More public service Greater independence Greater investment
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- on Concentration Fewer voices Private agendas Public unaware Synergy of dubious public
value Loss of family companies No longer local
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Rupert Murdoch Danger to democracy? News Corporation Criticisms: Politics China Content Goals
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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)