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Chapter 13 Media Economics


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Chapter 13 Media Economics

  1. 1. Chapter 13 – Media Economics and the Global Marketplace<br />While these slides were created using material from the above textbook, they are not official presentations from the publisher, Bedford/St. Martin’s. In addition, many slides may contain professor’s supplemental notes on various media topics.<br />
  2. 2. “From monetary exchange perspective, the relationship of our mass media system to politics is highly functional. From a democratic perspective, the relationship of our mass media system to politics is highly dysfunctional.”<br />-Media & Culture<br />
  3. 3. In This Chapter…<br />Collecting Money<br />Consequences of Deregulation<br />Cultural Imperialism<br />Media Marketplace and Democracy<br />
  4. 4. Collecting Money<br />How do you contribute to <br />the multi-BILLION dollar <br />media game??????<br />You give your TIME and<br />MONEY!<br />Directly – by buying media products directly—books, magazines, DVDs, Internet or cable subscription, movie tickets, etc.<br />Indirectly – by buying advertised products.<br />Who Owns What?<br /><br />Many forms of mass media—generaterevenue both directly and indirectly—like magazines or cable companies. They charge subscriptions and sell advertising.<br />
  5. 5. Consequences of Deregulation<br />Fewer government rules about ownership led to media companies’ consolidation and merger frenzy—leaving us with an oligopoly.<br />This means fewer people in control of powerful media companies.<br />Deregulation - relaxing government rules on how much “property” one company can own.<br />Telecommunications Act of 1996 anyone?<br />Time Warner<br />Walt Disney<br />News Corporation<br />NBC Universal (General Electric Co.)<br />Viacom<br />
  6. 6. Deregulation = Media Mergers<br />Disney bought ABC for $19 billion in 1995. <br />Time Warner bought Turner Broadcasting for $7.5 billion in 1995.<br />Time Warner merged with AOL—a $106 billion deal—in 2001 only to spin the company off by 2009.<br />AT&T cable joined Comcast in 2001 in a $72 billion deal.<br />AT&T would quickly leave the merger, selling its cable holdings to Comcast for $47 billion late in 2001.<br />Comcast purchased a majority stake in NBC Universal in 2009<br />
  7. 7. What Time Warner Owns (selected)<br />• Warner Bros. Television<br />Group<br />– Warner Bros. Television<br />– Warner Bros. Animation<br />– The CW Network<br />Movies<br />• Warner Bros. Home<br />Entertainment Group<br />• Warner Bros. Pictures<br />• Warner Bros. Pictures<br />International<br />• Warner Bros. Theatre<br />Ventures<br />– Cooking Light<br />– Health<br />– Southern Living<br />Television/Cable<br />• HBO<br />– HBO<br />– Cinemax<br />• Turner Broadcasting System<br />– Cartoon Network<br />– CNN<br />– HLN<br />– TBS<br />– TCM<br />– TNT<br />Books/Magazines<br />• DC Comics<br />• MAD Magazine<br />• Time Inc.<br />– Entertainment Weekly<br />– Essence<br />– InStyle<br />– Money<br />– People / People en Español<br />– Real Simple<br />– Sports Illustrated<br />– Teen People<br />– This Old House<br />– Time<br />• Southern Progress<br />Corporation<br />– Coastal Living<br />
  8. 8. Cultural Imperialism<br /> “Unlike American automobiles, television sets, and machine tools, American cultural products—movies, TV programs, videos, records, cassettes, and CDs—are sweeping the globe.”<br />- Richard J. Barnet and John Cavanagh, Global Dreams <br />Cultural Imperialism: the phenomenon of American media, fashion, and food dominating the global market and shaping the cultures and identities of other nations.<br />Why is our media so popular worldwide?<br /> The notion of freedom associated with innovation and rebellion in American culture has been embraced internationally.<br /> Our media exports have created a “global village” and promote consumerism worldwide.<br />
  9. 9. Cultural Imperialism – Questions:<br />Questions cultural imperialism raises:<br />What small country can justify building a competing media system if American programming is cheap?<br />How do people feel when they are bombarded with products they can’t afford to buy?<br />
  10. 10. Media Marketplace and Democracy<br />Politicians in Washington, D.C., regularly accept $$$$ from large media conglomerates.<br />Those conglomerates are pushing for more deregulation and enables them to grow larger and be subjected to fewer civic rules.<br />These media companies control much of the news operations in the world—why would they report on the issues of media ownership and control?<br />Do you care who <br />owns the media?<br />
  11. 11. Final Thought:<br />“The top management of the networks. . .has been trained in advertising, research, or show business. But by the nature of the corporate structure, they also make the final and crucial decisions having to do with news. . .Frequently they have neither the time nor the competence to do this.”—Edward R. Murrow<br />