Mass Communication and Journalism: Foundations of Mass Communication Media - Ownership and Concentration Conglomerates Disney Comcast News Corp Monopoly Oligopoly Pluralism

What It Is

Media ownership and concentration refer to the phenomenon where a small number of companies or individuals control a significant portion of the media landscape. This can lead to a lack of diversity in viewpoints and perspectives, as well as a concentration of power in the hands of a few individuals or corporations. A notable example of media ownership concentration is the acquisition of 20th Century Fox by The Walt Disney Company in 2019, which further solidified Disney's position as a media conglomerate. This matters for media analysis and public communication because it can impact the types of stories that are told and the perspectives that are represented.

Key Terms & Concepts

• Conglomerate: A company that owns and operates multiple businesses in different industries, often including media companies. (Example: The Walt Disney Company owns Disney, ABC, ESPN, and Pixar.)
• Monopoly: A market structure in which a single company has complete control over the production and distribution of a good or service. (Example: AT&T's control over the US telephone market in the early 20th century.)
• Oligopoly: A market structure in which a small number of companies compete with each other, but there is no single dominant company. (Example: The US airline industry, where a few large companies compete with each other.)
• Pluralism: A media system in which multiple sources of information and viewpoints are available, allowing for a diverse range of perspectives. (Example: The US news media landscape, where multiple sources such as CNN, Fox News, and NPR provide different viewpoints.)
• Media Concentration: The degree to which a small number of companies or individuals control a significant portion of the media landscape. (Example: The concentration of media ownership in the hands of a few large corporations, such as Comcast and Disney.)
• Cross-Ownership: The practice of owning multiple media outlets, such as a newspaper and a television station, in the same market. (Example: The ownership of the Los Angeles Times and KCAL-TV by the same company.)
• Vertical Integration: The practice of owning multiple stages of production and distribution, such as a media company owning both the production and distribution of a film. (Example: The ownership of film studios and distribution companies by major media conglomerates.)
• Horizontal Integration: The practice of owning multiple companies in the same industry, such as a media company owning multiple television stations. (Example: The ownership of multiple television stations by a single company.)
• Media Deregulation: The relaxation of government regulations on the media industry, often leading to increased concentration of ownership. (Example: The Telecommunications Act of 1996, which relaxed regulations on media ownership.)
• Media Regulation: The laws and regulations that govern the media industry, often aimed at promoting diversity and preventing concentration of ownership. (Example: The Federal Communications Commission's (FCC) rules on media ownership.)
• Media Diversity: The presence of a diverse range of viewpoints and perspectives in the media. (Example: The diversity of viewpoints on a news website such as The Huffington Post.)
• Media Literacy: The ability to critically evaluate and understand the media, including its ownership and concentration. (Example: The ability to recognize bias in a news article.)
• Propaganda Model: A theory of media ownership and control, developed by Edward Herman and Noam Chomsky, which argues that the media serves the interests of the powerful. (Example: The book "Manufacturing Consent: The Political Economy of the Mass Media.")
• Gatekeeping: The process by which media outlets decide what stories to cover and how to present them, often influenced by ownership and concentration. (Example: The decision by a newspaper to cover a local story or not.)

Common Misunderstandings

• Misunderstanding: Media concentration is a necessary evil for the media industry to survive. Correction: Media concentration can lead to a lack of diversity in viewpoints and perspectives, and can be detrimental to the media industry and society as a whole. (Example: The concentration of media ownership in the hands of a few large corporations has led to a lack of diversity in viewpoints and perspectives in the US news media landscape.)
• Misunderstanding: Media regulation is unnecessary and stifles innovation. Correction: Media regulation is necessary to promote diversity and prevent concentration of ownership, and can actually promote innovation and competition in the media industry. (Example: The FCC's rules on media ownership have helped to promote diversity and prevent concentration of ownership in the US media industry.)
• Misunderstanding: Media conglomerates are always bad for the media industry. Correction: Media conglomerates can be beneficial for the media industry, but only if they promote diversity and prevent concentration of ownership. (Example: The Walt Disney Company has promoted diversity and prevented concentration of ownership in the media industry through its acquisition of 20th Century Fox.)

Quick Application / Identification

Scenario: A media company owns multiple television stations in the same market, including a news station and an entertainment station. What type of ownership is this an example of?

Answer: Cross-Ownership. This is an example of cross-ownership because the company owns multiple media outlets in the same market.

Explanation: Cross-ownership can lead to a lack of diversity in viewpoints and perspectives, as well as a concentration of power in the hands of a few individuals or corporations.

Scenario: A media company owns multiple stages of production and distribution, including a film studio and a distribution company. What type of ownership is this an example of?

Answer: Vertical Integration. This is an example of vertical integration because the company owns multiple stages of production and distribution.

Explanation: Vertical integration can lead to a concentration of power in the hands of a few individuals or corporations, and can limit competition in the media industry.

Scenario: A media company owns multiple companies in the same industry, including multiple television stations. What type of ownership is this an example of?

Answer: Horizontal Integration. This is an example of horizontal integration because the company owns multiple companies in the same industry.

Explanation: Horizontal integration can lead to a concentration of power in the hands of a few individuals or corporations, and can limit competition in the media industry.

Last-Minute Revision

• The Telecommunications Act of 1996 relaxed regulations on media ownership, leading to increased concentration of ownership.
• The Federal Communications Commission (FCC) regulates the media industry to promote diversity and prevent concentration of ownership.
• The Propaganda Model, developed by Edward Herman and Noam Chomsky, argues that the media serves the interests of the powerful.
• Media literacy is the ability to critically evaluate and understand the media, including its ownership and concentration.
• The concentration of media ownership in the hands of a few large corporations has led to a lack of diversity in viewpoints and perspectives in the US news media landscape.
• The Walt Disney Company has promoted diversity and prevented concentration of ownership in the media industry through its acquisition of 20th Century Fox.
• The FCC's rules on media ownership have helped to promote diversity and prevent concentration of ownership in the US media industry.
• Media conglomerates can be beneficial for the media industry, but only if they promote diversity and prevent concentration of ownership.
• The ability to recognize bias in a news article is an example of media literacy.
• The concentration of media ownership in the hands of a few large corporations can lead to a lack of diversity in viewpoints and perspectives.
• The FCC regulates the media industry to promote diversity and prevent concentration of ownership.
• The Propaganda Model argues that the media serves the interests of the powerful.
• Media literacy is the ability to critically evaluate and understand the media, including its ownership and concentration.
• The concentration of media ownership in the hands of a few large corporations has led to a lack of diversity in viewpoints and perspectives in the US news media landscape.