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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 |
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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 |
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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 |
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| Local Cable Television Systems |
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| the companies that provide cable television service directly to consumers' homes |
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| high-speed channels for transmitting mutlimedia content into the home via cable or wireless connections |
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| American Tradition of Private Ownership of Media |
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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 |
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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 |
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| What 6 Companies Control a Majority of the US Media Industry? |
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Time Warner
Disney
Viacom
Bertelsmann
News Corporation
General Electric (GE) |
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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 |
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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 |
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| Examples of Synergy with the 6 Major Companies that Control the US Media Industry. |
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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 |
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| Forces that Control the Mass Media |
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| owners, advertisers, government, special interest groups, news sources, audiences |
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| have ultimate control over the content their newspapers, websites, or TV stations carry |
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have a major influence on types of news and entertainment presented in the media
can withdraw their advertising and have power over stories |
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influence how media companies operate and must review all mergers
still places numerous controls on the broadcast industry |
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| 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 |
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people who provide stories
those who are available to provide information or to be interviewed will determine what kinds of stories are reported |
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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 |
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| Revenue Sources for the Media (2) |
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1 - cost of inventory is minimal
2 - business over the entire country with a single store |
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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) |
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| *Telegraph > Radio > Television > Internet |
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| all of these are based on a private business model and all based on profit (1844) |
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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) |
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began in the 40s and early 50s
NBC was 1st with a 15 minutes television newscast |
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CBS and NBC went to a 30 minute broadcast
TV covered the assasination of JFK and the Vietnam War |
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ABC Nightline - late night news
CSPAN, national news in unedited form |
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| Ted Turner created CNN, 24-7 news |
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Larry King - national talk show all night
"Good news, good business, big business"
until 80s, all newspapers were local |
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USA Today, national newspaper 5 days a week transmitted by satelitte
1st and only national newspaper |
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| allowed newspapers to be national and was good business, markets expanded |
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a few companies own multiple media outlets
1983 - 50 media companies
Today - 6 major players |
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#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 |
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#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 |
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#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) |
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#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 |
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#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 |
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#6
o Owns 911 of NBC broadcasting networks; 28 networks, Telemundo, CNBC, Bravo, MSNBC, SciFi, USA Network, Universal |
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• 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 |
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| changed way of processing news, developing internet products, interactivity with readers |
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| State of media statistics |
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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 |
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