CMNS 130 REVIEW. Concentration The communication business tends ‘naturally’ to concentration The...
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Transcript of CMNS 130 REVIEW. Concentration The communication business tends ‘naturally’ to concentration The...
CMNS 130
REVIEWREVIEW
CMNS 130
ConcentrationConcentration The communication business tends The communication business tends
‘naturally’ to concentration‘naturally’ to concentration Effort to become bigger: control larger marketsEffort to become bigger: control larger markets Cross media ownership: mergers and Cross media ownership: mergers and
acquisitionsacquisitions Ie. Concentration of firmsIe. Concentration of firms But also Concentration of..But also Concentration of..
ProductsProducts Media formatsMedia formats MarketsMarkets
CMNS 130
Trends to Concentration of Trends to Concentration of Media Ownership in CanadaMedia Ownership in Canada
Before WW1: 138 dailies with Before WW1: 138 dailies with different ownersdifferent owners
By 1992: only 18 independents By 1992: only 18 independents remaining– now even fewerremaining– now even fewer
Mostly owned by CanWest-Global who Mostly owned by CanWest-Global who bought Hollinger…42% of dailiesbought Hollinger…42% of dailies
Hollinger takeover of Southam in Hollinger takeover of Southam in 1995 was appealed by Council of 1995 was appealed by Council of Canadians but failed in lower courts.Canadians but failed in lower courts.
CMNS 130
Canadian Media Canadian Media Concentration of OConcentration of O
Bell Canada EnterprisesBell Canada Enterprises- February 2000 bought CTV for 2.3 bFebruary 2000 bought CTV for 2.3 b- Acquired Globe and MailAcquired Globe and Mail- Also own Expressvu: satelliteAlso own Expressvu: satellite- Also own Telco in Ont/QuebecAlso own Telco in Ont/Quebec- Owns Sympatico: Canada’s largest internet Owns Sympatico: Canada’s largest internet
portalportal
CMNS 130
Canadian Concentration of Canadian Concentration of OO
- CanwestCanwest ( Global) bought Southam Inc 2000 ( Global) bought Southam Inc 2000- Now owns most of the National PostNow owns most of the National Post- Over 12 markets the major papers and major Over 12 markets the major papers and major
TV stations ( eg: Canwest owns Sun, Province TV stations ( eg: Canwest owns Sun, Province and Tony Parsons)and Tony Parsons)
- QuebecorQuebecor owns TVA Videotron owns TVA Videotron- RogersRogers owns Maclean Hunter mags owns Maclean Hunter mags- Electronic players buy out the printElectronic players buy out the print- Made in Canada media moguls: Conrad Black, Made in Canada media moguls: Conrad Black,
Thompson, Seagrams/Vivendi now MNCs Thompson, Seagrams/Vivendi now MNCs ( most sales off shore)( most sales off shore)
CMNS 130
Advantages to ConcentrationAdvantages to Concentration
Vertical integrationVertical integration When one company controls all of its production, When one company controls all of its production,
distribution and salesdistribution and sales Time Warner can show Warner movie on HBO, promote Time Warner can show Warner movie on HBO, promote
it on AOL, then sell it to its cable franchises later in it on AOL, then sell it to its cable franchises later in distribution chain ( second and third windows on distribution chain ( second and third windows on release)release)
Or, Sony acquires software for the hardware companies Or, Sony acquires software for the hardware companies ( See Lorimer and Gasher “Vertical Integration Today” p ( See Lorimer and Gasher “Vertical Integration Today” p 184)184)
Horizontal integrationHorizontal integration Disney sells products across different media ( theatre, Disney sells products across different media ( theatre,
ABC etc) or forms marketing alliances: MacDonaldsABC etc) or forms marketing alliances: MacDonalds
CMNS 130
DisadvantagesDisadvantages Debt structureDebt structure Inertia or incompatible structuresInertia or incompatible structures Inability to effect the ‘grand design’Inability to effect the ‘grand design’ An “eternal Peter Pan industry”: An “eternal Peter Pan industry”: Economist’sEconomist’s thesis of failing to live up to responsibilitiesthesis of failing to live up to responsibilities Abuse of market power: risk of block booking, Abuse of market power: risk of block booking,
windowing as a form of price discrimination- tied windowing as a form of price discrimination- tied selling or other anti-competitive practicesselling or other anti-competitive practices
CMNS 130
Conglomerate Defense Conglomerate Defense Only size can offset risk: aggregate Only size can offset risk: aggregate
economies of scale to afford economies of scale to afford stars/innovationstars/innovation
Retaliatory market behavior will ‘trim Retaliatory market behavior will ‘trim the sails’ of aggrandizing companies: the sails’ of aggrandizing companies: Murdoch bought Fox, then 20Murdoch bought Fox, then 20thth Century Fox, then other studios Century Fox, then other studios ganged up by signing with rivalsganged up by signing with rivals
‘‘self righting’: no conglomerate can self righting’: no conglomerate can tell subsidiaries what to buytell subsidiaries what to buy
No harmful intentNo harmful intent
CMNS 130
LORDS AND THE LORDS AND THE LIBERALSLIBERALS
Structural Political EconomyStructural Political Economy A study of interlocking elites:A study of interlocking elites:
Political and media elitesPolitical and media elites Corporate and media elitesCorporate and media elites
A study of elite influence, censorship A study of elite influence, censorship and control over news manufactureand control over news manufacture
CMNS 130
Market Concentration TestMarket Concentration Test- Measured by subs, or audiences reached by Measured by subs, or audiences reached by
ownership groupownership group- Assessed by decision about effective competition Assessed by decision about effective competition
( between TV and news outlets)( between TV and news outlets)- Now over 60% of Canadians receive their Now over 60% of Canadians receive their
newspaper from the same co as one of their TV newspaper from the same co as one of their TV stationsstations
- Fall out: Quebecor takeover followed by Cuts, and Fall out: Quebecor takeover followed by Cuts, and CanWest takeover followed by cuts of 1/3 news CanWest takeover followed by cuts of 1/3 news
staff at the Post, and closure of websitesstaff at the Post, and closure of websites
CMNS 130
Basis for Public Policy Basis for Public Policy ConcernConcern
Impact on channels for editorial diversity Impact on channels for editorial diversity ( Vancouver: Sun,Province and BCTV, the ( Vancouver: Sun,Province and BCTV, the most viewed news source in Lower Mainland most viewed news source in Lower Mainland all owned by Izzy Asper)all owned by Izzy Asper)
Concern that Daily Newspapers have Concern that Daily Newspapers have become bland: unlikely to disturb the status become bland: unlikely to disturb the status quo due to market pressuresquo due to market pressures
After takeovers there are layoffs, in search After takeovers there are layoffs, in search to reduce costs, and shrink reportageto reduce costs, and shrink reportage
Rural areas without news bureaus, Rural areas without news bureaus, replicating centre periphery dominancereplicating centre periphery dominance
CMNS 130
The Criticisms of Commercial Ownership and The Criticisms of Commercial Ownership and ControlControl
Examples: Ben Bagdikian “Lords of the Examples: Ben Bagdikian “Lords of the Global Village’– Mosco, Schiller, Murdoch, Global Village’– Mosco, Schiller, Murdoch, Clement, Hannigan, Babe, Mansell other Clement, Hannigan, Babe, Mansell other authorsauthors
Look at the interlocks and interpenetration Look at the interlocks and interpenetration of media and corporate or state elites: 40 to of media and corporate or state elites: 40 to 60% overlap on Boards and other networks 60% overlap on Boards and other networks of powerof power
Social and structural interlocks between Social and structural interlocks between powerful economic and media and political powerful economic and media and political eliteselites
CMNS 130
Criticisms from an O & C Criticisms from an O & C perspective perspective
Assume either direct economic censorship Assume either direct economic censorship or indirect censorship through ideological or indirect censorship through ideological limits on the manufacture of news– either limits on the manufacture of news– either through reinforcing professional norms, through reinforcing professional norms, organizational cultures, or other systemic organizational cultures, or other systemic controlscontrols
Point to instrumental examples of economic Point to instrumental examples of economic censorship: GE is the US’ largest weapons censorship: GE is the US’ largest weapons manufacturer but NBC has pulled stories on manufacturer but NBC has pulled stories on arms trade ( Anderson: 26) or focuses solely arms trade ( Anderson: 26) or focuses solely on Saddam Hussein’s ‘weapons of mass on Saddam Hussein’s ‘weapons of mass destruction’, not asking what is the US role destruction’, not asking what is the US role in build up of arms, norin build up of arms, nor what the military what the military industrial complex gains when Bush pushes industrial complex gains when Bush pushes to warto war
CMNS 130
Critical StudiesCritical Studies
Like Like Project Censored, or Project Censored, or NewswatchNewswatch
Look for the stories which do NOT Look for the stories which do NOT make the news:make the news:
The biggest power of the press is to The biggest power of the press is to ignoreignore Examples:Examples:
Environmental impacts of the OlympicsEnvironmental impacts of the Olympics Problems with salmon farmingProblems with salmon farming Weaknesses of the Access to Information ActWeaknesses of the Access to Information Act
CMNS 130
The Myth of Consumer The Myth of Consumer SovereigntySovereignty
Consumers can refuse to buy, Consumers can refuse to buy, but cannot directly control the but cannot directly control the cultural products availablecultural products available
CMNS 130
Myth of Public Media Myth of Public Media TransparencyTransparency
webs of relationships: public information on webs of relationships: public information on these private consortia is weakthese private consortia is weak
There is no ‘access to information act’ There is no ‘access to information act’ which controls the private sector boardroom which controls the private sector boardroom
Even if a Even if a No legal protections for journalists or No legal protections for journalists or
creators against economic censorshipcreators against economic censorship Journalists are gagged:Journalists are gagged:
In an MA study ( Ian Ross) of NDP and press, BC In an MA study ( Ian Ross) of NDP and press, BC journalists afraid to express an opinionjournalists afraid to express an opinion
Cannot protest coverage ( eg. Mad Cow Disease Cannot protest coverage ( eg. Mad Cow Disease scare)scare)
Some professional unions ( eg CEP) wonder if it is Some professional unions ( eg CEP) wonder if it is necessary to pass status of the journalists necessary to pass status of the journalists legislation in Canadalegislation in Canada
CMNS 130
The Corporate Propaganda The Corporate Propaganda ModelModel
Not crude conspiracy theoryNot crude conspiracy theory Instead, argues, like Noam Chomsky, Instead, argues, like Noam Chomsky,
that the media delimit the bounds of that the media delimit the bounds of expression, exclude dissent from expression, exclude dissent from entrenched, official positions, serving entrenched, official positions, serving the interlocking interests of state and the interlocking interests of state and corporate powercorporate power
Media reflect and entrench the status Media reflect and entrench the status quoquo
CMNS 130
News Watch Canada: Hackett, Gutstein and News Watch Canada: Hackett, Gutstein and ZhaoZhao
Top 30 stories in Project Top 30 stories in Project Censored focus on reluctance of Censored focus on reluctance of media to cover business media to cover business misconductmisconduct
In US: complicity of business In US: complicity of business press in Enron and other press in Enron and other scandalsscandals
CMNS 130
Studies on the Economic Effects of Studies on the Economic Effects of ConcentrationConcentration
Ad rates rise ( proven after takeover of Ad rates rise ( proven after takeover of Tribune by Southam in 1980)Tribune by Southam in 1980)
Positive: economies of scalePositive: economies of scale Negative: loss of local control, job lossNegative: loss of local control, job loss Kent Commission (1980): proposed limiting Kent Commission (1980): proposed limiting
ceiling on Chain growth, ordering ceiling on Chain growth, ordering divestiture, exempting papers from taxes, divestiture, exempting papers from taxes, shield laws for editors in chief, press riths shield laws for editors in chief, press riths panel in the Human Rights Commissionpanel in the Human Rights Commission
All rejected except Press Councils All rejected except Press Councils
CMNS 130
Cases of Direct Owner Cases of Direct Owner Censorship Hard to FindCensorship Hard to Find
Irving: New Brunswick Oil SpillIrving: New Brunswick Oil Spill Winnipeg Free Press: owner Winnipeg Free Press: owner
directed papers to attack the directed papers to attack the Income Tax Act in 1965Income Tax Act in 1965
Analysis of systemic/ideological Analysis of systemic/ideological factors growingfactors growing
See Lorimer and Gasher: What See Lorimer and Gasher: What Won’t You Do? Pages 112-113.Won’t You Do? Pages 112-113.
CMNS 130
Content EffectsContent Effects
Before and after study of front page, editorial, Before and after study of front page, editorial, features,sources of content,areas of interest, features,sources of content,areas of interest, revealed changes in Windsor Star ( Winter revealed changes in Windsor Star ( Winter study)study)
Evaluation of whether these changes are Evaluation of whether these changes are positive or negative depends on one’s positive or negative depends on one’s ideological position.ideological position.
But increasing commodification of the news, in But increasing commodification of the news, in search for profitssearch for profits
Emergence of ‘lifestyle’, tabloid news, blurring Emergence of ‘lifestyle’, tabloid news, blurring ‘reality’genres‘reality’genres
More wire imports from AP/etc. globally. Less More wire imports from AP/etc. globally. Less local coveragelocal coverage
Reduced editorial pagesReduced editorial pages
CMNS 130
Partisan EffectsPartisan Effects Some owners write editorials Some owners write editorials
( Asper: Shawinigate)( Asper: Shawinigate) Editorial Pages sometimes come Editorial Pages sometimes come
out for partiesout for parties But, study of elections does But, study of elections does notnot
suggest a consistent pattern suggest a consistent pattern concluding that these patterns concluding that these patterns of editorial support swing votesof editorial support swing votes
CMNS 130
Commercial ReductionismCommercial Reductionism See Lorimer and Gasher text, pp. 116-118See Lorimer and Gasher text, pp. 116-118 Sometimes called the Lowest Common Sometimes called the Lowest Common
Denominator of taste effect: need to Denominator of taste effect: need to maximize audiences and profits, drive to maximize audiences and profits, drive to ‘dumb down’ news and current affairs, ‘dumb down’ news and current affairs, slant to violence and sex as non-verbal, slant to violence and sex as non-verbal, universal global formulae entertainment universal global formulae entertainment with high export valuewith high export value
Also called LOP– least objectionable Also called LOP– least objectionable program ( see Grossberg et al, p 112)program ( see Grossberg et al, p 112)
CMNS 130
Global versus National Global versus National TensionsTensions
Trends to concentration are now globalTrends to concentration are now global ‘‘six’ large multinational mega companiessix’ large multinational mega companies Sole defense against international Sole defense against international
agglomeration: foreign investment rulesagglomeration: foreign investment rules Now Canadian owners are arguing they Now Canadian owners are arguing they
want access to more foreign capital: want want access to more foreign capital: want to make more investments abroadto make more investments abroad
Currently under review by SenateCurrently under review by Senate
CMNS 130
History of Economic History of Economic OrganizationOrganization
Until 1980 predominantly within Until 1980 predominantly within National BordersNational Borders
Most countries had local ownership Most countries had local ownership rules ( no more than 20 % foreign rules ( no more than 20 % foreign media control, and indigenous media control, and indigenous boards, reporting if publicly traded boards, reporting if publicly traded companies)companies)
Entertainment markets begin to Entertainment markets begin to globalize through film, videogames globalize through film, videogames and TV series: increasing trade in all and TV series: increasing trade in all media sectorsmedia sectors
CMNS 130
MultiNational GiantsMultiNational Giants
1.1. AOL Time WarnerAOL Time Warner: larger than the : larger than the GDP of most countries ( US $29 b)GDP of most countries ( US $29 b)
2.2. Disney Disney ( US $ 17 b)( US $ 17 b)3.3. Bertelsmann ( German)Bertelsmann ( German)4.4. Sony ( Japan)Sony ( Japan)5.5. ViacomViacom ( US) ( US)6.6. Fox(Australia)Fox(Australia)7.7. ThomsonThomson8.8. GE/NBCGE/NBC9.9. AT&T and LibertyAT&T and Liberty
CMNS 130
TradeTrade Growth in world trade in last 20 years has Growth in world trade in last 20 years has
been 7 times the average growth of GNP been 7 times the average growth of GNP Canada’s Open Economy among the most Canada’s Open Economy among the most
trade dependent of the G-8trade dependent of the G-8 30% of GNP derived from exports30% of GNP derived from exports Most of the trade still in resources but for new Most of the trade still in resources but for new
exporters: Northern Telecom, Spar, Telcosexporters: Northern Telecom, Spar, Telcos Canada has a persistently high deficit in tech Canada has a persistently high deficit in tech
trade deficit, and high trade deficit in media trade deficit, and high trade deficit in media hardware and softwarehardware and software
CMNS 130
US dominance of World US dominance of World TradeTrade
Controls 75% of world trade in Controls 75% of world trade in audio visual mediaaudio visual media
If look at top ad agencies, If look at top ad agencies, takeovers of American MNCs, see takeovers of American MNCs, see growing foreign (non American) growing foreign (non American) share share
Still a dominant market power: Still a dominant market power: after defense, entertainment is after defense, entertainment is the US biggest exportthe US biggest export
CMNS 130
Ways to Measure Trade Ways to Measure Trade DominanceDominance
Share of Domestic Markets Share of Domestic Markets ( individual nation basis)( individual nation basis)
Share of total world tradeShare of total world trade
CMNS 130
US Share of Canadian US Share of Canadian Domestic MarketDomestic Market
80% of books and magazines 80% of books and magazines consumed in Canada are consumed in Canada are AmericanAmerican
66% of viewing time to English 66% of viewing time to English TV is to USTV is to US
97% of movies are US97% of movies are US Comparison: less than 2% of US Comparison: less than 2% of US
TV is foreignTV is foreign
CMNS 130
US Share of World TradeUS Share of World Trade Estimated in Burnett, Estimated in Burnett, Global Global
JukeboxJukebox, 1995:, 1995: Broadcast and cable 75%Broadcast and cable 75% Film: 55%Film: 55% Video/sound recordings:55%Video/sound recordings:55% Books: 35% Books: 35%
(caution: difficulty of source checking)(caution: difficulty of source checking)
CMNS 130
Why the DominanceWhy the Dominance US products can recover up to 80% of their costs in US products can recover up to 80% of their costs in
their home market due to size of their market and their home market due to size of their market and consumer preference for US made mediaconsumer preference for US made media
Thus can afford to sell abroad more cheaplyThus can afford to sell abroad more cheaply Costs of foreign licensing of US product are between Costs of foreign licensing of US product are between
1/6 to 1/101/6 to 1/10thth the cost of original production the cost of original production thus there are strong incentives to buy US fare and thus there are strong incentives to buy US fare and
repackage it to maximize profitsrepackage it to maximize profits There is a huge large market advantage ( and small There is a huge large market advantage ( and small
market disadvantage) in the ‘block buster’ media market disadvantage) in the ‘block buster’ media and entertainment marketand entertainment market
CMNS 130
Conclusion: Conclusion: As the number of corporate owners drops, more As the number of corporate owners drops, more
content is controlled by fewer companies. Oligopoly content is controlled by fewer companies. Oligopoly describes this condition.describes this condition. Journalists find themselves in a conflict of interest Journalists find themselves in a conflict of interest
situation in reporting on the malfeasance of their situation in reporting on the malfeasance of their ownersowners
Societies debate whether the media are public or Societies debate whether the media are public or private goods every generation– Ideological private goods every generation– Ideological pendulums shiftspendulums shifts Should governments regulate competition? How?Should governments regulate competition? How?
States are concerned about world market States are concerned about world market dominance of US—call for fair trade not free tradedominance of US—call for fair trade not free trade
An International Movement led by Canada now is An International Movement led by Canada now is trying to protect smaller countries against trying to protect smaller countries against overwhelming US global dominanceoverwhelming US global dominance
CMNS 130
Other SourcesOther Sources Jim Winter, Jim Winter, Democracy’s Oxygen,Democracy’s Oxygen,
19951995 Ben Bagdikian, “Lords of the Ben Bagdikian, “Lords of the
Global Village”Global Village” Robert McChesney, Robert McChesney, Global MediaGlobal Media Lorimer and Gasher, pp. 203-Lorimer and Gasher, pp. 203-
218;222-232218;222-232
CMNS 130
Study Guide: State, Media Politics and MarketStudy Guide: State, Media Politics and Market
What are the major questions posed by What are the major questions posed by capitalist organization of the media?capitalist organization of the media?
How does capitalism relate to ideology, and How does capitalism relate to ideology, and what are the accepted roles of the state?what are the accepted roles of the state?
CMNS 130
Other Major QuestionsOther Major Questions
Why do people take for granted that the media Why do people take for granted that the media should operate within and as a part of the should operate within and as a part of the capitalist economy?capitalist economy?
How does the organization of the media as How does the organization of the media as private, profit making ventures influence the kind private, profit making ventures influence the kind and quality of media available to audiences/ and quality of media available to audiences/ consumers/citizens?consumers/citizens?