The big business of media the growth of media monopolies by alan desantis
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The Big Business of Media: The Growth of Media Monopolies By Alan DeSantis. Conglomerations, Buyouts, & Mergers. Prior to 1960 , hundreds of independent, family owned companies produced mass media for the nation Anti-trust laws prohibited these companies from owning too much

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The big business of media the growth of media monopolies by alan desantis

The Big Business of Media:The Growth of Media MonopoliesBy Alan DeSantis


Conglomerations buyouts mergers

Conglomerations, Buyouts, & Mergers

  • Prior to 1960, hundreds of independent, family owned companies produced mass media for the nation

    • Anti-trust laws prohibited these companies from owning too much

    • Everyone knew the danger of giving too much power to too few

  • By 1980, it was down to 50

  • In 2002, 7 firms control American media

    • And there are more and more anti-trust laws being overturned everyday


The big 7 and the men that run them

The Big 7 (and the MEN that run them)

  • The Big American 4

    • 1) AOL-Time/Warner—Steve Case

    • 2) News Corp—Rupert Murdoch

    • 3) Disney—Michael Eisner

    • 4) Viacom—Sumner Redstone

  • The Big International 3

    • 5) Sony (Japan)—Sir Howard Stringer

    • 6) Bertelsmann (German)—Thomas Middelhoff

    • 7) V-Universal (French)—Jean-Marie Messier


How did this happen

How did this happen?

  • Question: What happened to Anti-Trust Laws?

  • Answer: The systematic repeal of laws & policies to protect the public from big business and media monopolies

  • Not surprisingly, the Media Industry is a top lobbying contributor to politicians


The big american 4

The Big American4


Viacom

Viacom

  • National TV: CBS(purchased for 36 Billion), MTV, UPN(new emerging network),Nickelodeon, Showtime, CMT, TNN, VH1, BET (2.3 billion)

  • Affiliates (#2): 38 Stations in the Biggest Markets!

  • Radio: CBS (21 FM/18 AM), Infinity181 FM(H. Stern), Westwood

  • Film: Paramount Pictures (#2)

  • Video: Blockbuster Video (# 1)

  • Publishing: Simon & Schuster (#1), Scribners

  • Cinema: United Cinemas International (joint w/ U.V.) (big 3)

  • Internet: New Alliance with AOL, Jobs.com, Medscape Marketwatch.com, SportsLine, Wrenchead.com, StoreRunner

  • Others: 7 theme parks (including part Universal Studios)


Disney capital cities

Disney/Capital Cities

  • TV: ABC, ESPN (all), A & E, Lifetime, History Channels (w/ GE), SoapNet, E! (w/ ATT), Fox Family Channel (5.3 Billion)

  • Affiliates (#5): 24.5% of U.S. households

  • ABC Radio: 42 Stations reaching 13 Million

  • Motion Pictures (#3):Touchstone, Buena Vista, Walt Disney, Miramax

  • Internet: Go Network, Disney, ESPN, ABC News, Toysmart, infoseek, NASCAR.com, NFL.com, NBA.com

  • Entertainment:Theme Parks (creates 30% of revenue)in FL, CA, Paris, Tokyo, Hong Kong (with MGM),Mighty Ducks, Cal. Angels, Cruise Line, ESPN Zones

  • Others: Crude Petroleum, Natural Gas, Berkshire Hathaway Inc (insurance), State Farm, and 700 Disney retail stores


New corp aka fox

New Corp. (AKA Fox)

  • Reaches 3 billion people--2/3 of world

  • TV: 22 Different Channels (most in US) including Fox (#3), fx, Fox Sports, Fox News, and Fox Sports (specialized focal areas); Fox Production--#1 (selling show to other networks)

  • Affiliates (#1): 32 in Biggest Cities

  • Satellites: DirecTV (#1 in America), Europe, US, Asia, & Latin America

  • Movies: 20th Century (#1)

  • Newspapers (#3): 132--London Times, NY Post, The Sun (UK)

  • Magazines (#2): TV Guide (#1) and 24 Others

  • Books: Harper Collins (#5)

  • Internet: Healtheon/Web MD (1 billion $)

  • Sports: Los Angels Dodgers (#2), 20% of NY Knicks & Rangers, 40% of LA Kings, 10% of Lakers


Aol time warner turner 1

AOL-Time-Warner-Turner #1

  • Cable Entertainment: WB, Sega, E!, CNN, HBO, Comedy Central, Cinemax, TBS, Cartoon Network, WB(new emerging network)

  • Cable Companies (the pipes): Time Warner Cable w/ 13 million customers (2nd Largest)

  • Books: Time-Life Publishing (# 2), BOMC

  • Studios: Warner Brothers, Castle Rock, MGM, New Line Cinema (total #1)

  • Vault (#1): 6,000 Films, 25,000 TV Programs, Cartoons!

  • Music (#2): Warner/Chappel, Atlantic, Elecktra, Reprise, (new)= EMI, Capitol, Virgin, Columbia House (50% w/ Sony)

  • Programming: ER, Friends, Buffy, Sopranos, etc.


Aol time warner turner

AOL-Time-Warner-Turner

  • Mags (#1): Time, Fortune, Life, SI, People, Money

  • Others: PrimeStar, Six Flags, Atari, Hasbro, DC Comics, Braves, Hawks, Retail Stores, Hanna-Barbera, 1,000 oversea theaters, 100 cable and TV stations outside US

  • Internet (#1): AOL w/ 20 million customers (a new user every 3.5 seconds),Netscape, Compuserve, MovieFone, Instant Messenger--Worth about 200 Billion

  • Joint Ventures: Hughes Electronics, 3 Com, Kodak, General Motors, Hewlett-Packard


The strange 5th big brother in the game general electric

The Strange 5th Big Brother in the Game:General Electric


General electric 1 forbes for overall holdings

General Electric (#1 Forbes for Overall Holdings)

  • Entertainment: NBC, CNBC, Bravo, AMC, History Channel, Independent Film, Prime, Prism, Romance Classics, MS-NBC(joint venture with Gates), Paxson Network, Much Music

  • Affiliates (#1): 13 NBC, 72 Paxson Stations

  • Industrial: Transportation, Nuclear Reactors, Satellites, Long Distance, Motors, Plastics, Medical Services, Lighting, Insurance, Aircraft

  • Can you say, “Conflict of Interest!”


The big international 3

The Big International3


Vivendi universal french

Vivendi Universal (French)

  • Music (28% of market: #1):A&M, Decca, Geffen, Interscope, Island, Def Jam, MCA, Mercury, Motown, Universal, Verve

  • Education Publishing (#2): Houghton Mifflin

  • Filmed EntertainmentUniversal Pictures(#3), Home Video, TV & Network Groups

  • TV:

    • Universal TV: 25,000 TV episodes to over 180 countries

    • Canal+ TV : Europe’s #1 pay-TV & #2 TV catalog

  • Havas Publishing: 60 publishing houses (80 Mill books and 40 Mill CD ROMs per year)

  • Recreation: Universal Studios in Orlando, Japan, Hollywood, Barcelona, Beijing

  • Stores: Universal Studio Stores, Spencer Gifts


Sony japan

Sony (Japan)

  • Electronics: Media technology (#1 in home entertainment)

  • Music: CBS, Columbia(50% with T-W), Sony, & Epic Records (#3)

  • TV: Cinemax Latin, E! Latin, HBO (Ole, Brazil, Asia, Poland), Showtime Austrailia

  • Movies: Columbia Pictures, Tri-Star, & Sony Pictures

  • Theaters: SonyTheaters & Loews Cineplex (#1), IMAX Theaters

  • Games: 25% of video game market (#1), Playstation (#1)


Bertelsmann german

Bertelsmann(German)

  • Work force: 44,000 workers in 25 countries

  • TV: 19 European TV (#1 internationally)

  • Radio: 23 Radio(#1 internationally)

  • Magazines: Family Circle, Fitness, McCall’s, Parents, plus 100 international magazines (#1)

  • Books: Bantam, Random House, Dell, Doubleday, Knopf, Barnesandnoble.com (joint venture)

    • 169 books on NYT best-sellers list; 22 books at #1

  • Music: RCA, Arista Music, Windham Hill, & BMG

  • Computers: 50% of AOL Europe, Germany, France and Lycos Europe

  • *New Deal with Napster (50 million)


What the breakdown looks like

What the Breakdown Looks Like:

  • 3 publishers have most of the nation’s book sales

    • Viacom, T-W, Bertelsmann

  • 2 major companies own most magazine sales

    • T-W, News Corp

  • 4 major companies own most music sales

    • Universal, Sony, T-W, Bertelsmann

  • 5 companies have most of the TV audience

    • Disney, T-W, GE, Viacom, News Corp

  • 6 major studios produce most movies

    • Disney, Viacom, News Corp, T-W, Universal, Sony

  • 5 companies own most of the local affiliates

    • News Corp,Viacom,GE,Disney, T-W

  • 5 companies own the major TV news stations

    • Disney, T-W, GE, Viacom, News Corp


More bad news the myth of internet diversification

More Bad News:The Myth of Internet Diversification

  • Don’t think the internet is giving us a freer and more open market for greater choices

  • Over 50% of all the internet hits come from only 4 sites:

    • AOL Time Warner

    • Microsoft

    • Lycos

    • Yahoo

  • With Viacom, New Corp(Fox), & Disney also on the top-ten list


More bad news who s in bed with whom

More Bad News:Who’s in Bed with Whom?

  • Time Warner AOL

    • Viacom, Sony, ATT, Microsoft, News Corp, Bertelsmann (AOL Europe), Disney, Newhouse

  • NBC/GE

    • Walt Disney, ATT (3 different ventures), Dow Jones, Hearst, Rainbow Media (Knicks, Rangers, Romance, Bravo, Independent Film, MuchMusic), Paul Allen (Micro Soft)

  • Viacom

    • Universal/Seagram (A&M Records, Island Def Jam, Motown, Universal Pictures and Studios), Time Warner, Liberty Media (ATT)


Who s in bed with whom

Who’s in Bed with Whom?

  • AT&T (24 Million Cable Customers #1)

    • News Corp & GE (PrimeStar ), New Corp (20% of Fox News), Time Warner (10% of company), GE (10% of company), Rainbow Media

  • News Corp

    • ATT, Rainbow, Time Warner, New York Times, Rainbow Media, Newhouse


So what s the problem

So What’s The Problem?

  • 1) No true competition in the industry

    • Competition pushes business to be better and more diverse (See what others are not doing, and do it better)

      • Reach audiences that are being forgotten; Be more innovative; Become cheaper; Supply better service; Give us less commercials; Produce better and smarter shows

    • With joint ventures, however, there are not 8 separate corporations battling each other for quality. There are 8 inter-locked corporations that depend on each other’s mutual success

    • In reality, do we have one big Monolith?


So what s the problem1

So What’s The Problem?

  • 2) A closed system

    • When there were hundreds of small companies, it took far less money & influence to “start up” a new business and to be competitive

      • For example, how can small businesses compete with Walmart, Krogers, Gap, Walden Books, or McDonalds?

    • The last 60 years has produced virtually no new players

      • Spielberg & Microsoft’s Dreamworks

      • And even they are getting beat up

    • How do smaller, independent individuals compete with Billion $ Corporations?


So what s the problem2

So What’s The Problem?

  • 3) Media has lost its adversarial/protective role

    • The news has been traditionally a watchdog for the American public (make sure the bad guys get caught)

      • They made sure Big Business and Government are clean

    • They have become:

      • 1) The biggest of Big Businesses with major holdings in nuclear energy, weapons, chemicals, overseas labor, insurance, computers, health care, etc

      • 2) Lobbying and campaign partners with Washington

        • The richest one-quarter of 1 % of Americans (this would include the big 8) make 80% of campaign contributions

    • They Control:Today, Meet the Press, Dateline, 20/20, Prime Time, Good Morning America, Nightline, CNN, Headline News, CNNfn, 60 Minutes, Morning News, Face the Nation, 48 Hours, and Rather/Jennings/Brokaw Nightly News

    • Think about all the stories you’ll never hear about!


So what s the problem3

So What’s The Problem?

  • 4) Profit is now the only criteria for success

    • Before the business of media, people were dedicated to “truth” and “responsible journalism”

      • Like education, there was not a lot of money in the job

    • Today we have businesses dedicated to profit

      • The Big 8 traded on NYSE and NASDAQ

    • A) News agencies focus on entertainment value

      • What sells (sex, violence, and graphic photography)

    • B) Bold, creative shows/approaches are discouraged

      • Want the biggest share possible (think about today’s movies)

    • C) Expensive shows/stories are not cost effective

      • Give them the cheap stuff--No more “Watergate Investigations”


So what s the problem4

So What’s The Problem?

  • 5) 8 CEOs control the nation’s thoughts

    • If you control the media you control the minds of the people (Hitler knew it)

    • The media is the most effective teacher there is!

    • Media have the power to:

    • A) Keep us in the dark by not reporting certain issues

      • NBC’s Nuclear Power, Viacom’s Advertising, News Corp’s Labor Practices, or the Big 8’s hold on the market!!

    • B) Tell us who to love or hate

      • Love: White, rich, beautiful, thin, materialists

      • Hate: Other cultures, minorities, Southerners, poor, uneducated

    • C) Influence elections through favorable coverage

      • The big-business candidate


Possible solutions

Possible Solutions

  • 1) Enforce 1934 FCC Guidelines

    • When the FCC was formed, companies who wanted to use “public airwaves” had to supply a public service

      • Then 40% of time (on radio) was commercial free aimed at “public service” & education

    • If not, their license would be revoked

    • By 1970, all such control was lost

      • “Saturday Morning Ghetto” & “Budweiser PSAs”


Possible solutions1

Possible Solutions

  • 2) Break up the media monopolies (anti-trust laws)

    • A company can only own one of any medium

    • The rest must be sold off (reverse the damage)

    • This would give many smaller firms and individuals an opportunity to participate

  • 3) Have the Government and/or the Media Giants subsidize viable non-profit media

    • This would give us many more “public stations” to:

      • 1) serve the public interest

      • 2) aid democracy

      • 3) further education

    • Their goal would be edification, not profit!


Possible solutions2

Possible Solutions

  • 4) Implement campaign finance reform

    • The richest one-quarter of 1 % of Americans (this would include the big 8) make 80% of campaign contributions

    • This guarantees Washington’s alliance with the rich

      • And your powerlessness in politics since you don’t give

    • With this level of influence, the Big 8 (and other rich corporations) guarantee that THEIR best interests will be served

      • Favorable tax laws, overturned Anti-Trust laws, etc.

    • Question: Do our Representatives vote in our best interest or in the interest of their million $ contributors?

      • Remember, a successful campaign costs 4 to 10 Million $


Possible solutions3

Possible Solutions

  • 5) Use your vote

    • Vote for local and national candidates that support putting media back in the hands of the people

  • 6) Get politically & socially involved

    • www.commoncause.org

    • www.mediareform.net

    • www.moveon.org

  • 7) Express your anger/frustration to your representatives

    • FCC, 445, 12th St. Washington, DC 20554

    • [email protected]

    • [email protected]

  • 8) Do Nothing

    • Let the Giants alone!


The big business of media

Is This What Our Country Has Become?


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