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Who paysforjournalism chapter4(5)
- 1. Who Pays forJournalism? Principles of News Professor Neil Foote Chapter 4, Principles of American Journalism
- 2. What is the“business of journalism”? • Uphold our democracy? • Protect the First Amendment? • News? • Advertising? • Distribution? • Technology? • Access? 2
- 3. Media’s Evolution The OldDays Web 1.0 Web 2.0 3
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- 5. New York TimesFront Page: 1982 USA Today – First Edition 1982 “The Nation’s Newspaper” 5
- 6. USA Today: TheReaction “In 1981, when we announced it, most critics said we were crazy. They wrote our obit before we were born. “In 1982, after we published Vo. 1, No. 1 on September 15, 1982, many said we had aborted on the launchpad. “The whole idea was simply too big and too bold for the newspaper establishment club and the journalism critics to accept.” -- Al Neuharth, the late founder, USA Today & Gannett Corporation Chair.(p. 106, Confessions of a SOB) 6
- 7. USA Today: TheReaction cont. • “A national newspaper so informative and entertaining and enjoyable that it would grab millions of readers, including many of the television generation who were then nonreaders.” -- Al Neuharth, the late founder, USA Today & Gannett Corporation Chair (p. 107, Confessions of a SOB.) 7
- 8. USA Today: TheReaction cont. • “A newspaper so differ, so advance in design and appearance and content that it would pull the rest of the industry into the twenty-first century, albeit kicking and screaming. •“We’ll reinvent the newspaper.” -- Al Neuharth, the late founder, USA Today & Gannett Corporation Chair (p. 107, Confessions of a SOB.) 8
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- 10. Radio’s First Newscast 1920– Radio staff of the Detroit News: 10 Source: http://www.wired.com/thisdayintech/2010/08/0831first-radio-news-broadcast/
- 11. Radio “Goes Commercial” Westinghouse,Pitts burgh, PA: In 1922, 30 radio stations were in operation in the United States, and 100,000 consumer radios were sold. Just a year later, 556 stations were on the air and half-a-million receivers were sold. 1920 The Joseph Horne department store in Pittsburgh advertises ready-made radio receivers that can pick up a local broadcast station. Source: http://www.wired.com/science/discoveries/news/2008/09/dayintech_0929 11
- 12. 60 Years ofTV News NBC News • http://www.youtube.com/watch?v=mFvTr GDTCYU 12
- 13. CBS / WalterCronkite Sept. 2, 1963 – Half-Hour News https://www.youtube.com/watch?v=UYR8w 7Xzxxs 13
- 14. CNN’s First Broadcast •June 1st, 1980: http://www.youtube.com/watch?v=dqDopY5dMD8 14
- 15. Number of Yearsto Reach a 50 Percent Penetration of U.S. Households Technology / Medium Years Newspapers 100+ Telephone 70 Phonograph 55 Cable Television 39 Personal Computer 19 Color Television 15 Radio 9 Broadband Internet 9 Internet 7 Tablets 7 Source: Part 1, The Changing Media Landscape, p. 54, “Converging Media” 15
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- 18. What’s Going On? Insatiabledesire for information • Anytime, anywhere on any device Changes in Lifestyles • Time-shifting Exponential growth in technology • Methods of distribution • Devices – Smartphones, tablets Content Creation Everywhere/Everybody • Blogs, Facebook, Twitter 18
- 19. What is ‘media’? •MassMedia: • Sending and receiving messages on a massive scale • NEWS Media • Sending and receiving NEWS 19
- 20. Theoretical Framework • Characteristicsof media economy • Ownership: Who Owns What • Structure 20
- 21. Ownership Patterns • Publiclytraded companies: • Disney, Viacom, Comcast, Gannet, New York Times, Belo Corporation • Privately held • Journal Register, New York Daily News, Boston Globe, • Public-Private • NPR, BBC • Government Owned • Voice of America 21
- 22. Key issues • Contrastof market and public sphere models • Assumptions • Advantages of market model • Economies of scale • Horizontal and vertical integration • Critique of market model by public sphere model • Concentration of ownership • Dual-product model 22
- 23. Market Model Public Sphere Howare media conceptualized? Private companies selling products Public resources serving the public What is the primary purpose of the media? Generate profits for owners and stockholders Promote active citizenship via information, education and social integration How are audiences addressed? As consumer As citizens What are the media encouraging people to do? Enjoy themselves, vie ads and buy products Learn about their world and be active citizens What is the public interest? Whatever is popular Diverse, substantive and innovative content, even if not always popular 23
- 24. Market Model Public Sphere Whatis role of diversity Innovation can be a and innovation? threat to profitable, standardized formulas. Diversity can be a strategy for reaching niche markets. Innovation is central to engaging citizens. Diversity is central to media’s mission of representing the range of the public’s views and tastes. How is regulation perceived? Useful tool in protecting the public interest Mostly seen as interfering with market processes. To whom are media Owners and ultimately accountable? shareholders The public and government representatives How is success measured? Serving the public interest Profits Source: David Croteau and William Hoynes, The Business of Media: Corporate and the Public Interest, Pine Forge Press, 2001, p. 37. 24
- 25. Structure of MediaMarkets • Daniel C. Hallin and Paolo Mancini: “Comparing Media Systems: Three Models of media and Politics” • Development of the “mass press” • The rate of newspaper circulation. How much is the circulation the newspaper. • Newspaper-readership relationship. It defines what the ratio of mass or elite audience is. 25
- 26. Structure of MediaMarkets • Relative importance of newspapers and television as sources of news • Ratio of local, regional, and national newspapers • Regional or linguistic segmentation of media markets 26
- 27. Contrasts to consider •Ownership • Commercial versus Noncommercial • Orientation • Market versus Public • Primary Goal • Profit versus Service 27
- 28. Commercial ownership Not ownedby government • Operate as for-profit business • Owners can be individuals, families or stockholders • Media monopolies evolve to media oligopoly • 28
- 29. Media Oligopoly • Amarketplace in which media ownership and diversity are severely limited and the actions of any single media group substantially affect its competitors, including determining the content and price of media products for both consumers and advertisers. Source: Chapter 2, Media Literacy in the Digital Age, p. 51, Converging Media 29
- 30. Market Driven v.Public Market • Unregulated supply and demand • Unregulated ownership • Media like all other products • Consumer is key Public • Supply and demand can’t meet all needs • Government has a role • Media not like all other products • Citizen is key 30
- 31. Driving the Changes ECONOMY Declining Profit Margins TECHNOLOGY ADVERTISERS AUDIENCE Riseof Digital Media Increased Options Changing Behaviors 31
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- 33. Market advantages Promote: • • • • Efficiency Responsiveness Flexibility Innovation Markets candeliver media like any other product 33
- 34. Market structures characterized by: •Number of owners • Product diversity • Barriers to entry • Vertical and horizontal integration • Concentration of ownership 34
- 35. How does itoffer those advantages? • Economies of scale • Horizontal integration • Vertical integration 35
- 36. Horizontal Integration • Whena single large media corporation owns a number of different kinds of media products or outlets. • E.g. The Hearst Corporation 36
- 37. Vertical Integration • Whena media corporation owns companies involved in different phases of the media production process – creating media products, distributing them, showing them. • E.g Comcast 37
- 38. Examples: Economies ofScale • Hearst Corporation • Horizontal Integration • 15 newspapers, 20 magazines (300 int’l editions, including Cosmo, ELLE, Seventeen, Car and Driver), 29 television stations http://www.cjr.org/resources/?c=hearst 38
- 39. Examples: Economies ofScale • Comcast • Vertical integration: TV, Cable, Internet, Programming • 22.0 million video customers, 19.4 million high-speed Internet customers, and 10.0 million voice customers • NBC Universal, Telemundo • Weather Channel, Bravo, SyFy, USA, Golf Channel, NBC Sports, E! Online • http://www.cjr.org/resources/?c=comcast 39
- 40. Examples: Economies ofScale • Disney Corporation • Horizontal and vertical integration • ABC, ESPN, Disney World, Disneyland, Disney Cruise Buena Vista Pictures, Lucas Film, Radio Disney, Local radio stations • http://www.cjr.org/resources/?c=disney 40
- 41. Examples: Economies ofScale • Gannett Corporation • Concentration of ownership • 82 daily newspapers, including USA Today • 200 weekly publications • 23 Television stations • Numerous websites • http://www.cjr.org/resources/?c=gannett 41
- 42. Examples: Economies ofScale • Clear Channel • Concentration of ownership • Reaches 243 million monthly listeners via radio • 150 cities through 850 owned radio stations in the U.S., as well as more than 140 stations in New Zealand and Australia • http://www.cjr.org/resources/?c=clearcha nnel 42
- 43. Competition • Without it,no incentive to… • improve product • keep prices attractive • Innovate • Consolidation has thwarted innovation, fueled complacency • Allowed more noble, agile smaller players into the marketplace 43
- 44. Media consolidation • What’sits impact? • Let’s listen to Sen. Maria Cantrell ask questions of Thomas Wheeler, nominee for chair, Federal Communications Commission • https://www.youtube.com/watch?v=p8Af KrGgcLs 44
- 45. Government regulation • Governmentintervention (regulation) can serve the market where competition is lacking. • Fueled growth, standardization; • All digital signals in 2009, fueling HD TV • FCC: Federal Communications Commission • FTC: Federal Trade Commission 45
- 46. Public sphere model •News media a social space for public dialogue, which needs: • Free-flowing, public interest information • Citizen participation • Diversity of ideas and voices Markets are limited in their ability to provide those things. 46
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- 48. Why is themarket limited? • Markets can be undemocratic • $1 = 1 vote • Unequal access to marketplace • Amoral • Bad content often cheap as well as popular • Markets don’t necessarily meet social needs • Market success may or may not = political or cultural success 48
- 49. People treated as consumers not citizens Produce economic,n ot civic, benefit s “Toaster with pictures” Market logic: Media as Product 49
- 50. From the publicperspective: • Market OK for media consumers, not so much for media citizens • Media are resources for citizenship, not just entertainment • Media have unique role in democracy, recognized in US legal protections 50
- 51. Dual-product model Media content Audience Advertisers Media: •“Selling” programming to your viewers • “Selling” viewers’ attention to advertisers 51
- 52. Summary: Conflicting logics • • • • Market Privatecompanies selling products Purpose is to generate profits The public interest is whatever is popular Accountable to owners • • • • Public Public resources serving the public Purpose is to promote citizenship The public interest is good content, even if unpopular Accountable to the public 52
- 53. Media Ownership: TheTrilogy • Competition • Localism • Diversity (of voices, ownership) 53
- 54. Adapt or Die OldSchool • Display ads • Classified ads • Auto • Real Estate • Jobs • • • • • • Subscriptions Suburban sections Inserts Coupons Direct mail Special Sections New School • • • • • • • • • • • Paywalls Nonprofit Hyperlocal Banner ads Cost Per Click Cost Per Action Search Events E-books Mobile Tablet 54
- 55. YOUR QUESTION OFTHE DAY: • Some say profits and good journalism are constantly in conflict. Given the economic problems of traditional media today, consolidation has become a solution for survival. • Is consolidation of media good or bad for media? • What impact does advertising you see in today’s news coverage? Programming? 55
- 56. The Media WhoOwns What 56 Source: http://www.pbs.org/wgbh/pages/frontline/shows/cool/giants/
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Editor's Notes
- #36 Going to the websites of media conglomerates helps illustrate this. You could use screenshots of Gannett Corp and Clear Channel (economies of scale and concentration of ownership), Comcast (vertical integration), Hearst (horizontal integration), Disney (both horizontal and vertical) etc. A complete listing of “who owns what” can be found on the Columbia Journalism Review website, cjr.org.
- #50 The “toaster with pictures” is a reference to a famous quote by former FCC Chairman Mark Fowler who was arguing that, because television is no more than an appliance, a “toaster with pictures,” it didn’t need to be regulated. The idea is that media are like any other product. This is in direct contrast to the public sphere approach.