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Details Title: Chapter 2 - The Media Business Description: Chapter 2 review for JOUR101 midterm. Total Flash Cards: 42 Created: 10/07/2007 12:36:40	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term *Penny Press Definition inexpensive, widely circulated papers that became popular in the 19th century first American media to be supported primarily through advertising revenue newspapers printed for mass audiences Term *Vertical Integration Definition controlling all aspects of a media project including production, delivery to consumers in multiple formats, and the promotion of the product through other media controlling every aspect of the media from production to sending it out Term *Synergy Definition where the combined strength of two items i greater than the sum of their individual strenghts means that a large company can use the strengths of its various divisions to successfuly market its content a combination is greater than any individual part Term Local Cable Television Systems Definition the companies that provide cable television service directly to consumers' homes Term Broadband Networks Definition high-speed channels for transmitting mutlimedia content into the home via cable or wireless connections Term American Tradition of Private Ownership of Media Definition US has a long tradition of private ownership dating back to the 1640s, newspapers provided commentary and gossip that would appeal to members of a particular political group electronic media have always been privately owned today the broadcasting industry is primarily a private business in the U.S. but is regulated by government Term Growth of Big Media Definition massive changes have taken place in the media industry in the past 35 years changes in the way we communicate will transform the way we live six major companies control a majority of the media output in the US Term What 6 Companies Control a Majority of the US Media Industry? Definition Time Warner Disney Viacom Bertelsmann News Corporation General Electric (GE) Term Media Syngery Definition mergers are fairly straightforward toward consolidated ownership the combination of AOL and Time Warner gave the new company a huge pool of material - magazines to TV networks to online services Term Advantages of Synergy Definition owning multiple channels allows a company to repackage media content for different audiences having the 1st access to new movies raises ratings and brings more advertising revenue Term Examples of Synergy with the 6 Major Companies that Control the US Media Industry. Definition Disney - uses synergy to cross-market consumer products, theme parks, and media content News Corporation - their direct broadcast sattelite systems currently cover much of the globe, owning every step of the process and media properties around the world Viacom and CBS - two seperate corporations, two seperate stocks, ownership of the companies heavily overlap Bertelsmann - world's largets publisher of English language books but has entered in the music business and produces shows like "American Idol" GE - bought NBC and RCA in 1985 and being the number four rated network was a radical change called NBCU 2.0 Syngery Intiative Term Forces that Control the Mass Media Definition owners, advertisers, government, special interest groups, news sources, audiences Term Owners Definition have ultimate control over the content their newspapers, websites, or TV stations carry Term Advertisers Definition have a major influence on types of news and entertainment presented in the media can withdraw their advertising and have power over stories Term Government Definition influence how media companies operate and must review all mergers still places numerous controls on the broadcast industry Term Special Interest Groups Definition put pressure on the media either to avoid dealing with particular topics in what they consider to be offensive manner or what topics to stay away from altogether Term News Sources Definition people who provide stories those who are available to provide information or to be interviewed will determine what kinds of stories are reported Term Audiences Definition power comes from their willingness to read a particular book, etc. if the audience is not there, the media are not likely to carrying the programming Term Revenue Sources for the Media (2) Definition 1 - cost of inventory is minimal 2 - business over the entire country with a single store Term *Media Ownership Definition different in the US than in any other country not government owned but government regulated privately owned (cable is private) government can control obsence content and regulate broadcasts newspapers are unregulated - the government doesn't tell them what they can and can't do magazines are unregulated (minus obscenity and sending laws) Term *Telegraph > Radio > Television > Internet Definition all of these are based on a private business model and all based on profit (1844) Term Colonial News Definition very localized Term *Radio Definition connected the country could connect rural areas and large cities flourished in the 30s and 40s WWII - first war covered electronically (CBS was a leader in WWII radio) Term *Television Definition began in the 40s and early 50s NBC was 1st with a 15 minutes television newscast Term 1963 Definition CBS and NBC went to a 30 minute broadcast TV covered the assasination of JFK and the Vietnam War Term 1968 Definition CBS created "60 Minutes" Term 1968 Definition CBS created "60 Minutes" Term 1979 Definition ABC Nightline - late night news CSPAN, national news in unedited form Term 1980 Definition Ted Turner created CNN, 24-7 news Term 1978 Definition Larry King - national talk show all night "Good news, good business, big business" until 80s, all newspapers were local Term 1982 Definition USA Today, national newspaper 5 days a week transmitted by satelitte 1st and only national newspaper Term Technology Definition allowed newspapers to be national and was good business, markets expanded Term Media Consolodation Definition a few companies own multiple media outlets 1983 - 50 media companies Today - 6 major players Term Time Warner Definition #1 o $43.65 billion in sales o Started with Magazine (1922) o LIFE magazine (1936) o 1980s – joined a company (Warner) with a %media delivery system (HBO) o 1996 – purchased all of Ted Turner: CNN, WTBS, TNT, Cartoon Network, Turner Classic Movies o Merger with AOL (2001) o Time has been more adventurous going towards the internet Term Disney Definition #2 o $31.6 billion in revenue o Started with Walt Disney (1928) with Mickey Mouse o Major inventor of animation o First full length animated film (1937) o 1950s – started a daily TV show for children (Mickey Mouse Club), developed cereals, movies, characters, Sunday evening weekly program (Wonderful World of Disney), a them park o Disney theme parks around the world o Bought ABC, ESPN networks, magazines, radio, TV affiliates, and Disney channels, Touchstone, Buena Vista, Pixar, Miramax Term Newscorp Definition #3 o $25.3 billion in sales o Rupert Murdoch started newspapers (1964) in Australia and (1969) in Britain o 1977 bought New York Post o 1980s bought 20th Century FOX productions o 1996 created FOX News o Owns TV Guide, Myspace, Dow Jones News, and 1/3 of Direct TV o Sole (for $) 38.5% ownership of Direct TV to Liberty Media (for $550 million) Term Viacom/CBS Definition #4 o $25 billion in sales o 147 affiliated radio stations o Owns MTV, BET, CMT, Showtime, Paramount, DreamWorks, Simon and Schmuster Publishing Company o 39 TV stations in 27 different markets Term Bertelsman Definition #5 o $21.1 billion o Rooted in book publishing and music o Owns Random House, Double Bay, Dell, Valentine, Sony music, Arista, RCA, BMG, and Wimbden Hill o Germany/Europe based Term GE/NBC Definition #6 o Owns 911 of NBC broadcasting networks; 28 networks, Telemundo, CNBC, Bravo, MSNBC, SciFi, USA Network, Universal Term Other companies Definition • Other companies o Gannet – owns USA Today (7.3 million daily), newspapers in America o Clear Channel – owned 1200 radio stations in 2005 (both big and small) • Now selling many stations • Owns 800,000 outdoor billboards Term Hyper-localism Definition changed way of processing news, developing internet products, interactivity with readers Term State of media statistics Definition o People who go online for news; 92 million o Daily newspapers in 2006 dropped 3% in circulation, 4% in Sunday o Over the last 3 years, newspapers lost 6.3% of circulation and 8% in Sunday editions o Networks – a year of change lost 1 million viewers per year (25 years) o Ethnic press is growing o Audience for radio has stabilized • 90% get at least some news from radio o 8% of MP3 owners listen to news podcasts o 6% of news over phone o 18.5% of news on PDAs o audiences have major impact on content and delivery