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1 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
J200: Journalism and Mass Communications - Week III
2 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
J200: Journalism and Mass Communications - Week II & III
Functions of the Media General Systems Theory Production / Distribution Controlling Influences Ethical Considerations
3 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Process of MassComm
Source
“Encodes”
MessageChannel
Receiver “decodes” message
Feedback
4 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
In all mass media industries, organizations carry out four primary activities:
Production Distribution Exhibition Finance
5 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Key Questions to Analyze the Communications Process 1. Who were the senders of the message? The
receivers?
2. With what symbols was the message encoded? What are the advantages and disadvantages of using these symbols?
3. Through what channel was the message sent, and by what technology or means?
- What are the advantages and disadvantages of the channel and technology?
1.- What are common sources of noise or static?
6 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Key Questions to Analyze the Communications Process
4. What were the motivations of the principal actors? Why did they enter into the communication process?
5. What was the nature of the message, the content of the news, i.e. what was considered newsworthy? By whom?
6. What were the principal effects of the message on the sender? On the receiver?
7 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Key Questions to Analyze the Communications Process7. How was society affected by this type
of message? Whose interests were helped? Were any group or class’s interests harmed?
8. Were there any important exogenous variables (outside influences) on the communication process (such as the social or political context — including censorship, licensing or other regulation).
8 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
An analysis matrix:
Type/Variable
Prod. Distrib. Exhibition Finance
BooksNewspprsMagazinesRadioTVetc.
9 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
An analysis matrix:
Type/Variable
Prod. Distrib. Exhibition FinanceGov't.Regs
BooksNewspprsMagazinesRadioTVetc.
10 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Brief introduction to General Systems Theory Attributes of a system….
Composed of variables, i.e. elements that can be defined, or described, separately. Sub-variables. Tree-to-branch-to-leaf-to-cell
There are relationships between variables Horizontal relationships Vertical (i.e. hierarchical) relationships
11 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Brief introduction to GST
A system has boundaries Conceptual Legal: corporate, jurisdiction Geographic Cultural
A system has goals, self-defined or with a definition imposed by an observer/researcher Make money Provide for group security, happiness,
procreation
12 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
A newspaper as a system
Editorial
Production
Circulation
Advertising
“Backoffice”
13 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
A newspaper as a system
Editorial
Local News
Int’l News Business Sports
14 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
A newspaper variables and sub-systems
Editorial
Local News
Int’l News Business Sports
High SchoolCollegeProfessional
15 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Online enterprise Dynamic system model
16 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Example of Media Concentration
The Powerful 20 (c. 2001)
17 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
The Big One: AOL Time Warner
January 10, 2000 America Online and Time Warner announce a merger in a stock swap valued at $350 billion.
October 11, 2000 The European Commission clears the merger but makes Time Warner drop its plans for merger with EMI, the U.K.-based music group.
18 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
The Big One: AOL Time Warner
December 14, 2000 The Federal Trade Commission approves the merger.
January 11, 2001 The Federal Communications Commission approves the merger with conditions to maintain competition on Time Warner's high-speed cable lines. AOL's shares have fallen by 35 percent since the merger was announced from $160 billion to around $105 billion.
When AOL "merged" with Time Warner it was valued at $164 billion -- largest such transaction in history.
Gerald Levin, the chairman and CEO of Time Warner, was so besotted with the "synergies" the combined companies would produce that he sold out Time Warner's incomparable assets to Steve Case, the chairman and CEO of AOL.http://www.redherring.com/columns/2002/friday/lastword071902.html
19 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
The Big One: AOL Time Warner
January 16, 2001 Allan Sloan comments in The Washington Post: "So this isn't a merger. It's a takeover by the incredibly prescient — or incredibly lucky — people at American Online. In return for shares that, absent this deal, would probably be trading at roughly the level of whale droppings, AOL gets to own some of the most valuable media properties on the face of the planet."
Chairman, Steve Case; CEO, Gerald Levin Employees: 79,000 Revenues: $31.8 billion
20 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
AOL Time Warner TODAYPosted on Mon, Jan. 13, 2003
AOL Time Warner's Steve Case to resignLISA SINGHANIA -Associated Press
NEW YORK - Blamed by shareholders for AOL Time Warner's sharp fall in fortunes, Steve Case said he will step down as chairman of the conglomerate he helped create - a marriage of old and new media first hailed as revolutionary but now struggling for a future.
Case's departure means the company's leadership will be without any of the key architects of the blockbuster merger of America Online and Time Warner in 2001. The company said Sunday he would step down in May.
-- January 12, 2003
“Since January of 2001 when the merger closed, AOL Time Warner's stock price has gone from about $47.23 to close at $14.88 at the end of trading Friday, a drop of just under 70 percent.”
21 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
AOL Time Warner Not long ago
July 18, 2002
AOL COO Stepping Down By Thor Olavsrud
AOL Time Warner (Quote, Company Info) Thursday confirmed that Chief Operating Officer Robert Pittman, who is also serving as interim chief of the America Online division, will leave the company and that a management shake-up is in the works.
22 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
AOL Time Warner
Sept. 19, 2003
Trapped in a troubled marriage, AOL Time Warner decided yesterday to return to its maiden name, dropping its first three letters.
The company will now be called Time Warner, an attempt to erase a big reminder of the excesses of the Internet era, America Online's acquisition of Time Warner for shares priced at the peak of the boom. [NYTimeshttp://www.nytimes.com/2003/09/19/business/media/19AOL.html ]
23 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
These activities involve resources and power Resources:
The symbolic and material components a system needs to carry out its tasks.
Power: The use of resources by one system in order to gain compliance by another system.
24 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Power role
Power roles Resource-controlling relationships Taken on mostly by systems
Producer Power Role Creates material for release to public Competition over niches
25 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Power Role
Exhibitor Power Role Exhibition is the activity of presenting
mass media materials to audiences for viewing or purchase
Finance can involve two power roles Investor Client
26 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
The Client Power Role
Organizations pay for product that exists
Advertisers -- the main support system
But others exist as well
27 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Investor Power Role
Broadly speaking, a company has two ways to get money in anticipation of production Take out loans, and… Encourage investments in the company
Many media firms are public companies -- that is, their stocks are available on the open market.
28 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Other ways to get financing
Venture capitalists Stock offerings IPO -- Initial Public Offerings
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Media financing
Large majority of U.S. media are in commercial hands Q: Does that make for better or
worse media content?
That doesn’t mean government is out of the picture+
30 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Government regulation
Can or do government regulations influence the kinds of businesses firms can enter Broadcasting? Cable? Direct mail?
Wireless? I-o-P publications? Can or do government regulations
also influence kinds of materials producers can create and show to audiences? Bomb-making? Pornography? Untrue
advertising?
31 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Controlling Influences: Government
Authority Power Role Certain businesses, such as radio
broadcasting, television broadcasting and cable TV, have government (all levels) regulations directed just at them.
Licensing Copyright
FCC and Powell http://www.washingtonpost.com/ac2/wp-dyn/A3541-2003Jan2?language=printer
32 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Controlling Influences: Government
Obscenity Q: Can the police come to your home and
take out an obscene video that you have rented? The Tin Drum case
http://archive.aclu.org/issues/freespeech/tindrum.html
33 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Controlling Influences: Government
Libel Is an Internet Service Provider libel for
libelous notes that it sends?
The case of Lunney v. Prodigyhttp://legal.web.aol.com/decisions/dldefam/lunney.html
34 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Controlling Influences: Ethics
What determines media ethics? Individuals Corporate culture Corporate “standards” Audience pressures Professional organizations
35 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Audience Size Continuum
Targeted deliveryExpensive
Indiscriminate targetCheap
Mass audience
Audience of one
Groups of varying size
36 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Rock carving
BooksMagazines
Media Speed Continuum
Slowest between encoding-receipt-feedback
Fastest between encoding-receipt-
feedback
Newspapers
Radio
TV
I-net
37 J200 - Week © J.T.Johnson 1999-2003___________________________Spring 2004
Rock carving
BooksMagazines
Media Content Longevity Continuum
Long degree of permanence
Short (traditionally)
degree of permanence
Newspapers
Radio
TV
InternetInternet