🤐Media Criticism Unit 12 – Media Ownership: Corporate Influence on Content

Key Concepts

• Media ownership concentration refers to a small number of corporations controlling a large portion of the media landscape
• Vertical integration occurs when a company owns multiple stages of the production and distribution process (content creation, distribution networks, and outlets)
• Horizontal integration happens when a company acquires or merges with other companies in the same industry to expand market share (acquiring competing media outlets)
• Conglomeration is the formation of large, diversified corporations that own a wide range of media properties across various industries (film studios, television networks, publishing houses, and theme parks)
• Deregulation involves the removal or reduction of government regulations on media ownership, allowing for increased consolidation
• Media pluralism refers to the diversity of media ownership, ensuring a variety of voices and perspectives in the public sphere
• Gatekeeping is the process by which media organizations control the flow of information, deciding what content is disseminated to the public

Historical Context

• The Telecommunications Act of 1996 significantly deregulated media ownership in the United States, paving the way for increased consolidation
• The act removed cross-ownership restrictions, allowing companies to own multiple media outlets (television stations and newspapers) in the same market
• Mergers and acquisitions accelerated in the late 1990s and early 2000s, leading to the formation of large media conglomerates (AOL-Time Warner merger in 2000)
• The Federal Communications Commission (FCC) has historically been responsible for regulating media ownership to promote diversity and competition
  • The FCC's role has been contested, with some arguing for stricter regulations and others advocating for a more hands-off approach
• Globalization has played a significant role in the expansion of media conglomerates, as companies seek to enter new markets and acquire international properties
• Technological advancements, such as the rise of the internet and digital media, have disrupted traditional media ownership models and created new challenges for regulation

Major Media Conglomerates

• Comcast is one of the largest media conglomerates, owning NBCUniversal (television networks, film studio, and theme parks) and Xfinity (cable and internet services)
• The Walt Disney Company owns a vast portfolio of media properties, including ABC, ESPN, Pixar, Marvel Studios, and Lucasfilm
  • In 2019, Disney acquired 21st Century Fox, further expanding its media empire
• ViacomCBS was formed through the re-merger of Viacom and CBS in 2019, combining assets such as Paramount Pictures, CBS, MTV, and Nickelodeon
• AT&T's WarnerMedia owns HBO, CNN, Warner Bros., and DC Entertainment
  • In 2021, AT&T announced plans to spin off WarnerMedia and merge it with Discovery, Inc. to create a new standalone company
• Sony Corporation has a significant presence in the media industry through Sony Pictures Entertainment (film and television production) and Sony Music Entertainment
• News Corporation, founded by Rupert Murdoch, owns various media outlets, including Fox News, The Wall Street Journal, and HarperCollins Publishers

Ownership Models

• Private ownership is when a media company is owned by individuals or private entities, often through stocks or shares
  • This model allows for more flexibility in decision-making but may be subject to the influence of majority shareholders
• Public ownership involves media organizations that are owned and operated by the government or state-funded institutions (BBC in the United Kingdom)
  • Public ownership aims to provide a public service and ensure a diversity of voices, but concerns arise about potential government influence
• Non-profit ownership is when media outlets are owned and operated by non-profit organizations, often with a focus on public interest journalism (ProPublica)
• Employee-owned media companies are owned and controlled by their employees through stock ownership plans or cooperatives
  • This model aims to prioritize journalistic integrity and employee welfare over profit maximization
• Publicly-traded companies are owned by shareholders and traded on stock exchanges, subjecting them to market pressures and shareholder expectations (The New York Times Company)
• Joint ventures involve partnerships between multiple media companies to share resources, expertise, and financial risks (Hulu, originally a joint venture between NBC Universal, Fox, and Disney)

Impact on Content Creation

• Corporate ownership can influence editorial decisions, potentially leading to self-censorship or the promotion of content that aligns with the parent company's interests
  • Journalists may feel pressured to avoid stories that could harm the financial interests of their corporate owners
• Consolidation can lead to a homogenization of content, as media outlets under the same ownership may share resources and prioritize cost-cutting measures
• Conglomerates with diverse holdings may prioritize cross-promotion and synergy, influencing the content created and distributed across their various media properties (Disney promoting Marvel films across its television networks and theme parks)
• Ownership concentration can limit the diversity of voices and perspectives in the media, as a few powerful companies control the majority of the content consumed by the public
• Corporate ownership may prioritize profitability over public interest, leading to a focus on sensationalized or entertainment-oriented content rather than in-depth journalism
• Media ownership can shape the framing and agenda-setting of news coverage, influencing public opinion and political discourse
• Independent media outlets often struggle to compete with large conglomerates, which have greater resources and market power to promote their content

Regulatory Framework

• The Federal Communications Commission (FCC) is the primary regulatory body for media ownership in the United States
  • The FCC sets rules and guidelines for media ownership, including limits on the number of stations a single entity can own in a given market
• The Telecommunications Act of 1996 significantly deregulated media ownership, removing cross-ownership restrictions and allowing for increased consolidation
• The FCC's media ownership rules have been subject to legal challenges and revisions over the years, with debates over the appropriate level of regulation
• Antitrust laws, enforced by the Department of Justice and the Federal Trade Commission, aim to prevent anti-competitive practices and excessive market power in the media industry
• The Fairness Doctrine, which required broadcasters to present contrasting viewpoints on controversial issues, was eliminated by the FCC in 1987, leading to the rise of more partisan media outlets
• Net neutrality regulations, which prohibited internet service providers from discriminating against or favoring certain online content, were repealed by the FCC in 2017, raising concerns about corporate influence over internet access
• International regulatory frameworks vary, with some countries having stricter ownership regulations (Canada's foreign ownership restrictions) and others having more lenient policies

Case Studies

• The Sinclair Broadcast Group's proposed acquisition of Tribune Media in 2017 raised concerns about media consolidation and the potential for biased news coverage
  • Sinclair, known for its conservative leanings, would have reached 72% of American households through the merger
  • The deal ultimately fell through due to regulatory hurdles and public opposition
• The AT&T-Time Warner merger in 2018 faced antitrust scrutiny, with the Department of Justice arguing that the vertical integration would harm competition and lead to higher prices for consumers
  • The merger was eventually approved, with the court ruling that the government failed to prove its case
• The News Corporation phone-hacking scandal in the United Kingdom exposed unethical practices and the close ties between media owners and political leaders
  • The scandal led to the closure of the News of the World tabloid and increased public scrutiny of media ownership concentration
• The Comcast-NBCUniversal merger in 2011 raised concerns about vertical integration and the potential for Comcast to favor its own content over competitors
  • The merger was approved with conditions, including requirements for Comcast to provide fair access to its distribution networks for rival content providers
• The Walt Disney Company's acquisition of 21st Century Fox in 2019 further consolidated Disney's market power in the entertainment industry
  • The deal faced regulatory scrutiny but was ultimately approved, with Disney agreeing to divest certain assets (regional sports networks) to address antitrust concerns

Current Trends and Future Outlook

• The rise of digital platforms and streaming services has disrupted traditional media ownership models, with companies like Netflix and Amazon investing heavily in original content production
  • These platforms have global reach and are not subject to the same ownership regulations as traditional media outlets
• The increasing importance of data and targeted advertising has led to the emergence of new media conglomerates, such as Google and Facebook, which dominate the digital advertising market
• The COVID-19 pandemic has accelerated the shift towards digital media consumption, putting further pressure on traditional media companies to adapt and innovate
• The growing concern over misinformation and fake news has highlighted the need for responsible media ownership and the importance of journalistic integrity
• Calls for increased diversity and representation in media ownership and content creation have gained momentum, with initiatives to support minority-owned media outlets and promote inclusive storytelling
• The future of media ownership regulation remains uncertain, with ongoing debates over the appropriate balance between fostering competition and allowing for innovation and economies of scale
• The globalization of media ownership is likely to continue, with conglomerates seeking to expand their reach and influence across borders
• The increasing convergence of media, technology, and telecommunications industries may lead to new forms of consolidation and partnerships, blurring the lines between traditional media ownership categories