SMAD 101 Test 4 Media Owernship
Terms in this set (20)
Blended together and everyone gets the same. Malling of America
A market in which there are few buyers. Buyers not providers (Opposite of oligopoly)
Companies both produce and buy
Number of newspaper
1,772 in 1950. 1,438 today. Only morning papers left
Number of cities with competing newspapers
Number of cities that operate under joint operating agreements
Trend in music industry
LArgest firms are increasing shares
CBS/UPN, FOX own
Who bought NBC and Universal
Concentration within one industry
Print and broadcast chains
Own media properties and other non-media business
Cross media ownership: Own more than one type of media
Absorption into a single firm of several firms involved in the same level of production and sharing resources at that level
Practice where a single entity controls the entire process of a product, from the raw materials to distribution
Why media are hot commodities?
Profits margins for media companies 23%. Scare commodities. Many were family owned. Easier to buy than create. Deregulation of media communication
1996 Telecommunication Act
From 12 TV stations to 39. Allows cross-ownership. Encourages "bundling".
A law that let anyone enter any communications business and that let any communications business compete in any market against each other. The primary goal of the law was deregulation of the converging broadcasting and telecommunications markets.
Advantages pf Concentration
Large companies can do many things a smaller company cannot. (Keep up with technological changes, maintain an international press corp, training, higher wages, better working conditions for employees, invest in research and development).
Notable papers that are part of a chain
New York Times, La Times, Washington Post
Concerns of concentration
Loss of message pluralism (one newspaper, one voice). Concentration of information power (Does it remain objective?) Concentration of marketing power (Close off entry points for competition). Results oriented toward profit rather than quality. (Pandering to what is popular than what is necessary).