Media in America

Media UseMedia Use

Next year, Americans are projected to spend more than 9 1/2 hours a day with the media, though hours spent doing two things at once, such as watching TV and using the Internet, are counted twice

Americans spend an average of 4 1/2 hours a day watching TV

Media UseMedia Use

1,555 hours watching television, up from 1,467 in 2000. The estimate includes 678 hours watching broadcast TV and 877 watching cable and satellite.

974 hours listening to the radio, up from 942 in 2000.

95 hours using the Internet, up from 104.

175 hours reading daily newspapers, down from 201.

122 hours reading magazines, down from 135.

106 hours reading books, down an hour.

86 hours playing video games, up from 64.

American Mass Media TrendsAmerican Mass Media Trends

Technological InnovationTechnological Innovation

Governmental DeregulationGovernmental Deregulation

Corporate ConglomerationCorporate Conglomeration

Mass Media in AmericaMass Media in America

Market Based SystemMarket Based System More Flexible/Reacts more quicklyMore Flexible/Reacts more quickly

Seeks cost efficienciesSeeks cost efficiencies

InnovativeInnovative

Big BusinessBig Business


New Forms of Mass MediaNew Forms of Mass Media1900s:1900s: Mass Circulation Newspapers (Penny Press)Mass Circulation Newspapers (Penny Press)

1930s:1930s: RadioRadio

1950s:1950s: TelevisionTelevision

1980s:1980s: VCR, Video TapesVCR, Video Tapes

1980s:1980s: Cable, SatelliteCable, Satellite

1990s: Internet1990s: Internet

2000s: Digital broadcasting2000s: Digital broadcasting


Competition Fragments Audiences:Competition Fragments Audiences:

Television: Dominant 3 networks face competition from new Television: Dominant 3 networks face competition from new networks, satellite stations, cable, videonetworks, satellite stations, cable, video

Radio: First faces competition from TV, then cable and Radio: First faces competition from TV, then cable and internetinternet

Newpapers: Competition from radio, then TV, then Newpapers: Competition from radio, then TV, then satellite/cable, then internetsatellite/cable, then internet

DeregulationDeregulation

U.S. Government Regulation of Media: Very U.S. Government Regulation of Media: Very

LimitedLimited No government ownership of domestic mediaNo government ownership of domestic media

11stst Amendment to the Constitution : Very Strong Protection of Press Amendment to the Constitution : Very Strong Protection of Press

Freedom/Free SpeechFreedom/Free Speech

Prior Restraint Very Rare: Prior Restraint Very Rare: NYT v. U.S.NYT v. U.S. (1971) (1971)

Libel Laws Lenient on Press: Libel Laws Lenient on Press: New York Times v. SullivanNew York Times v. Sullivan (1964): must (1964): must

show reckless disregard for the truthshow reckless disregard for the truth

Example: 1998 case of Oprah Winfrey v. Texas cattle ranchersExample: 1998 case of Oprah Winfrey v. Texas cattle ranchers


Media regulations in the early 20th Media regulations in the early 20th century in the U.S.century in the U.S.

FCC was established to regulate broadcasting FCC was established to regulate broadcasting because of the ideas of airwaves being owned by the because of the ideas of airwaves being owned by the public and limited bandwidthpublic and limited bandwidth

Anti-trust lawsAnti-trust laws


New technologies mean more choices (at least New technologies mean more choices (at least apparently so)apparently so)

• The proliferation of channels and outlets – Cable TV, The proliferation of channels and outlets – Cable TV, satellite TV, Internet, etc.satellite TV, Internet, etc.

• The traditional argument for government regulation The traditional argument for government regulation seems to be obsolete – channel capacity is no longer seems to be obsolete – channel capacity is no longer that limitedthat limited

Technological convergenceTechnological convergence• A single box is now carrying all kinds of services and A single box is now carrying all kinds of services and

contentscontents• Sharing of inputs – economy of scopeSharing of inputs – economy of scope• Posing problems for old regulatory regimesPosing problems for old regulatory regimes

DeregulationDeregulation Early changesEarly changes

• Fairness Doctrine was abolished in 1987Fairness Doctrine was abolished in 1987• The syn-fin rule was lifted in 1993The syn-fin rule was lifted in 1993• Policies limiting ownership of radio and TV stations Policies limiting ownership of radio and TV stations

were relaxed in the 1980swere relaxed in the 1980s• Enforcement was more relaxedEnforcement was more relaxed

A self-perpetuating cycleA self-perpetuating cycle• These changes produced bigger and bigger These changes produced bigger and bigger

companiescompanies• Bigger companies have bigger lobbying powerBigger companies have bigger lobbying power• More deregulationMore deregulation

Deregulation: Deregulation: The 1996 The 1996 Telecommunications ActTelecommunications Act

New York Times: “40 million dollars’ worth of lobbying bought New York Times: “40 million dollars’ worth of lobbying bought telecommunications companies a piece of Senate legislation telecommunications companies a piece of Senate legislation they could relish. But consumers have less to celebrate.”they could relish. But consumers have less to celebrate.”

Deregulation of TelevisionDeregulation of Television

Previous rulesPrevious rules New rulesNew rules1. Up to 12 TV stations nationwide1. Up to 12 TV stations nationwide 1. No limit on no. of TV stations1. No limit on no. of TV stations2. Stations reaching up to 25% of 2. Stations reaching up to 25% of 2. Station reaching up to 35% 2. Station reaching up to 35% US TV households US TV households of US TV householdsof US TV households3. Only one station in a market3. Only one station in a market 3. called for review; in 1999, 3. called for review; in 1999,

FCC announced that multiple FCC announced that multiple station ownership in a single station ownership in a single market is allowed subject to market is allowed subject to conditionsconditions

Deregulation: Deregulation: The 1996 The 1996 Telecommunications ActTelecommunications Act

Deregulation of RadioDeregulation of Radio

Previous rulesPrevious rules New rules New rules

1.1. Up to 20 FM and 20 AM stations Up to 20 FM and 20 AM stations 1. No limit on station 1. No limit on station

NationwideNationwide ownership ownership

2. No more than two AM and2. No more than two AM and 2. ownership adjusted by 2. ownership adjusted by two FM stations in a market two FM stations in a market market size market size

3. Stations capturing up to 25%3. Stations capturing up to 25% 3. stations capturing up to 3. stations capturing up to of Market share in the local radio of Market share in the local radio 50% of market share 50% of market share marketmarket

Deregulation: Recent ActionsDeregulation: Recent Actions

FCC in the 21FCC in the 21stst Century Century

Michael Powell appointed to FCC by Clinton in Michael Powell appointed to FCC by Clinton in 1997.1997.

Appointed chair by Bush in 2001.Appointed chair by Bush in 2001. Began largest relaxation of ownership rules in 30 Began largest relaxation of ownership rules in 30

years years


FCC in the 21FCC in the 21stst Century Century

Strongly opposes government regulation until the Strongly opposes government regulation until the 2004 Superbowl2004 Superbowl

Adopts a new drive against indecency on the airAdopts a new drive against indecency on the air Begins campaign of heavy fines against stations Begins campaign of heavy fines against stations

breaching FCC rulesbreaching FCC rules Fines: 2000 - $48,000Fines: 2000 - $48,000 2004: $7.7 million 2004: $7.7 million

Deregulation: Recent ActionsDeregulation: Recent Actions Superbowl 2004: most watched television event of the yearSuperbowl 2004: most watched television event of the year Cost of 30 second ad in 2002: $2.5 millionCost of 30 second ad in 2002: $2.5 million

Janet Jackson’s ‘Wardrobe Failure’Janet Jackson’s ‘Wardrobe Failure’


Viacom fined $550,000 for the Superbowl broadcastViacom fined $550,000 for the Superbowl broadcast

House and Senate encouraging during election yearHouse and Senate encouraging during election year

Masterpiece Theater cuts language from Prime Suspect for PBS Masterpiece Theater cuts language from Prime Suspect for PBS broadcastsbroadcasts

Some ABC stations refuse to show Saving Private Ryan around Veteran’s Some ABC stations refuse to show Saving Private Ryan around Veteran’s DayDay

Radio Stations cutting songs from playlists such as Elton John’s ‘The Radio Stations cutting songs from playlists such as Elton John’s ‘The Bitch is Back’ and the Rolling Stones’ ‘Bitch’Bitch is Back’ and the Rolling Stones’ ‘Bitch’

Howard Stern fined 1.5 million for sexual discussionsHoward Stern fined 1.5 million for sexual discussions

Bono of U2 cited for using the ‘f’ word when receiving an awardBono of U2 cited for using the ‘f’ word when receiving an award


2006 2006 FCC proposes record $3.9 million for FCC proposes record $3.9 million for an episode of the CBS an episode of the CBS

crime drama "Without a Trace" that aired in December 2004, crime drama "Without a Trace" that aired in December 2004, citing a graphic depiction of "teenage boys and girls citing a graphic depiction of "teenage boys and girls participating in a sexual orgy." participating in a sexual orgy."

CBS takes case to federal appeals court to set aside the CBS takes case to federal appeals court to set aside the $550,000 fine by the Federal Communications Commission. $550,000 fine by the Federal Communications Commission. The network argued the fine was “unconstitutional, contrary to The network argued the fine was “unconstitutional, contrary to the Communications Act and FCC rules and generally the Communications Act and FCC rules and generally arbitrary, capricious and contrary to law.”arbitrary, capricious and contrary to law.”

Media Conglomeration: Media Conglomeration: Number of Corporations Number of Corporations Dominating Mass MediaDominating Mass Media

19831983 50 Companies50 Companies 19871987 29 Companies29 Companies 19901990 23 Companies23 Companies 19971997 10 Companies10 Companies 20002000 6 (3 foreign owned)6 (3 foreign owned)

Largest Media Mergers (dollars)Largest Media Mergers (dollars)

19831983340 million340 million

1997199719 billion when ABC merged with 19 billion when ABC merged with DisneyDisney

20002000350 billion when Time-Warner 350 billion when Time-Warner merged with AOLmerged with AOL

Newspaper ChainsNewspaper Chains

Very ProfitableVery Profitable Chains buy up locally owned papers for huge pricesChains buy up locally owned papers for huge prices Tax laws favor chains over family ownershipTax laws favor chains over family ownership

NameName CirculationCirculation Number of PapersNumber of PapersGannettGannett 5.5 million5.5 million 82 papers82 papersKnight-RidderKnight-Ridder 3.6 million3.6 million 27 papers27 papersNewhouseNewhouse 2.9 million2.9 million 26 papers26 papersTribuneTribune 5.2 million5.2 million 30 papers30 papersDow JonesDow Jones 2.4 million2.4 million 8 papers8 papersNew York TimesNew York Times 1.7 million1.7 million 26 papers26 papers

Media Merger EffectsMedia Merger EffectsEffects of Media Mergers:Effects of Media Mergers:

Pro:Pro: Economies of scaleEconomies of scaleMore resources More resources More efficient productionMore efficient production

Anti:Anti: Narrow the range of optionsNarrow the range of optionsHomogenize contentHomogenize contentErode democratic controlErode democratic control

Media Merger EffectsMedia Merger Effects

Economies of scaleExample: Cable, Internet services

More resources:Example: Film Studios

More efficient productionExample: News, Radio

Time-Warner/AOL MergerTime-Warner/AOL Merger

Mutual Needs: AOL needs high speed/cable (Time-Warner is a cable company). Time-Warner has little internet presence.1. Faster internet service

2. Interactive TV

3. Online music

4. Distribution of movies (over internet)

5. Advertising/E-commerce

6. Blue skies development

7. Cross promotion

8. News on internet (CNN)


Reduce Choice:Monopoly power of suppliersExample: Cable companies

Homogenize Content:Example: Radio

Democratically unaccountable:Example: Political Interference


Trivialization and sensationalism The largest common denominator The trend towards infotainment Light content and the buying mood Reality TV Scandal and soft news What is quality content? Elitism?


Declining localism Availability of local media products is affected

by the presence of global media giants? Development of local media industry is

affected by the presence of global media giants?

What happens when local media organizations are owned by foreign capital?

OJ Dominates the TVOJ Dominates the TV

Top News Stories Top News Stories

Network TV Network TV Sept. 16 - 21, 2007 Sept. 16 - 21, 2007 Rank Story Percent of NewsRank Story Percent of News

1 1 O.J. Simpson O.J. Simpson 15% 15% 2 2 2008 Campaign 2008 Campaign 993 3 US EconomyUS Economy 884 4 Events in Iraq Events in Iraq 775 5 Jena 6Jena 6 556 6 Iraq Policy Debate Iraq Policy Debate 557 7 Iraq HomefrontIraq Homefront 558 8 Attorney General Nominee Attorney General Nominee 339 9 Norman Hsu Fundraising Scandal Norman Hsu Fundraising Scandal 2210 10 Iran Iran 2 2

OJ does not appear in printOJ does not appear in print


NewspapersNewspapers Rank Rank Story Percent of Newshole Story Percent of Newshole

1 1 Events in Iraq Events in Iraq 14% 14% 2 2 2008 Campaign 2008 Campaign 993 3 Attorney General Nominee Attorney General Nominee 774 4 Health Care Health Care 7 7 55 US Economy US Economy 776 6 Norman Hsu Fundraising ScandalNorman Hsu Fundraising Scandal 557 7 Iran Iran 558 8 Iraq Policy Debate Iraq Policy Debate 339 9 Jena 6 Jena 6 3310 10 O.J. Simpson O.J. Simpson 22


Modest Interest in O.J. Simpson Arrest Modest Interest in O.J. Simpson Arrest


Ideological biases Pro-business, pro-capitalism

Conservative

Class biases in the news media

The Liberal Media Establishment?

Ideological BiasIdeological Bias

2003: Dixie Chicks banned from Cumulus Media and Clear Channel (262 and 1,225 stations) when Natalie Maines, lead singer, says “we’re ashamed the president of the United States is from Texas” in London concert


2004: Disney refuses to release Michael Moore’s documentary Fahrenheit 9/11


Rupert Murdoch

Fox News: Fair and Balanced?

Media in America

Documents

Transcript of Media in America