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A 300-level lecture on media economics as part of a course on media and social change.
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Mass Media
Production perspective:
•Media are the result of social processes of production that occur within an institutional framework.
Mass Media
Production perspective:
Media Ownership
Concentration and conglomeration:
Media Ownership
Indy or ‘mass’ media?•Different imprints under the same umbrella label:
e.g. Random House: Vintage/Anchor Books, Double Day, Golden Books, Bantam Dell, etc…
Media Ownership
Who own the media?•There are wildly contrasting opinions.
Media Ownership
Trending towards a…
Media OwnershipConglomeration:•Media become part of larger corporations in diverse areas
Media OwnershipVertical integration:•One owner acquires all aspects of the production and distribution of a certain media product.
Media OwnershipVertical integration:•Google AdWords:
Google search engine AND network of AdSense affiliate websites AND advertising agency.Advertisers buy US$28 billion/year ads directly from Google through the AdWords Platform.
•Does vertical integration benefit the consumer?
Media OwnershipHorizontal integration:•One company buys different kinds of media, concentrating ownership across different types of media, e.g. AOL (watch the ‘AOL media’ video)
Media OwnershipHorizontal and vertical integration are generally combined:
Consequences of Conglomeration
The creation of media products that can best be exploited by other sections of the
conglomerate is prioritised.
Angels and Demons official Travel Tour
Consequences of Conglomeration
Profitable news•Focus on entertainment•MBAs as editors
Consequences of Conglomeration
Mega newspapers•Drawing on corporate advertisers•But is profitability the correct measure forcreating quality news?
Consequences of Conglomeration
Ideology:•What positions are included and excluded?•The corporate voice:
CapitalismThe stock market
Consequences of Conglomeration
Political power:•Media owners as politicians
Silvio BerlusconiRupert Murdoch
Consequences of Conglomeration
Joint-operating agreements:•Shared facilities between media:
e.g. Seattle Times & Seattle Post Intelligencere.g. Nokia & WinPho7
Consequences of Conglomeration
•Examining diversity in content (Entman 1989)
Vertical diversityRange of actors mentionedRange of disagreement found
Horizontal diversityDifferences in content between media
Consequences of Conglomeration
Entman’s results:•Content similar across ownership
Narrow range of actorsSmaller disagreement
No diversity at all!
Profit Motive
The news:•Decreased numbers of journalists•Joint ownership agreements•More wire service reports•Preplanned events•Reduced rural coverage
Profit Motive
The news:•Video News Releases (VNRs)
Video version of a traditional news release
VNR TV
Profit Motive
The news:•A decrease in long-term investigative reporting…
Profit Motive
The news:•Decreased levels and depth ofanalysis
Profit Motive
The news:•Continual use of the same (often elite) sources
Profit Motive
The Possible ramifications:•The focus shifts to marketing•Similarity between news outlets
Profit Motive
Possible ramifications:•Reduced understanding of international affairs•Increased interest in ‘scandal’
Profit Motive
Possible ramifications:•Increase in fabrications?
e.g. Blair e.g. Glass
Profit Motive
Possible ramifications:•Increase in sensationalism
Profit motive
Advertising’s historical influence:•Removal of the radical press•‘objectivity’ stemmed from the shift from partisan presses to corporate advertising-supported news
Profit Motive
Advertising’s influence:•Provides both incentives and constraints on content:
•40% of journalists report self-censorship•Chrysler reviews potentially damaging stories
•See also previous link to video about journalists an Monsanto
•Reporting to higher-income classes
Consequences of concentration
Modern music:•Industry-wide consolidation•Internet theft•Artistic draught
Profit Motive
Inside Prime Time (Gitlin 2000)•Programming decisions driven by profit
•Most shows fail•The few hits carry all else
Profit Motive
Inside Prime Time (Gitlin 2000)•Logic of safety, no controversy
•Repeat, repeat, repeat, ad infinitum…
Profit Motive
Inside Prime Time (Gitlin 2000)•Lower costs
•Newsmagazines and reality TV
Profit Motive
Advertising impact•The product sold is the AUDIENCE•The audiences are seen as CONSUMERS
Profit Motive
Advertising sold in places not seen before•Roughly one third of a typical movie contains product placements
Modern Advertising
Product placement•A long-used practice, but increasing in efficiency and omnipresence
Profit Motive
Co-sponsorship = ultimate•Does sponsorship influence content?
Profit Motive
Is advertising and product placement effective? e.g.‘Sideways’
•Pinot Noir sales up 22%•Blackstone Pinot Noir up 150%•Tourism to California wine region up 30%
Profit Motive
But is it really effective?•More people smoke on screen than in real life
Profit Motive
The success of Apple™
Profit Motive
The success of Apple™
Profit Motive
The success of Apple™
Profit Motive
The success of Apple™
Profit Motive
The success of Apple™
Profit Motive
Unregulated product placement•Some advocate the use of subtitles to alter audiences to paid appearances
Profit Motive
Unregulated product placement•Some advocate the insertion of a slide at the beginning of the film
Profit Motive
The brand is interwoven into the plot
Profit Motive
Hollywood argues that the use of real brands is important to maintain realism•‘Without them, the films look fake’
Profit Motive
Advertisements in places not seen before•Book deals
•e.g. The Bulgari Connection
Profit Motive
Advertisements in places not seen before•The classroom
•e.g. Channel One
Profit Motive
Advertising’s influence•Broadcasting or mass communication to narrowcasting
Profit Motive
Music•Music videos as advertising•Video direction not artistic but commercial
Profit Motive
Advertising influence•Gated communities
•Speak only to those you want to•See only what you want to see•Hear only what you want to hear
Profit Motive
Advertising influence•All communication looks like a sales pitch
Profit Motive
Advertising influence•Dispersed and omnipresent