Pros and Cons of Media Consolidation

This is a list of common arguments for and against media consolidation.

Arguments in Favor of the Corporate Media System

1) The lack of government control argument. Regardless of any problems that exist in a corporate media system, many people see it as superior to a system that is controlled by the government.

2) The "eyeball democracy" argument. Because the corporate media system is one that is primarily interested in profit, it is based upon ratings. If something is popular, it will remain in the media, but if it is not popular, it's gone. Because of this, consumers essentially get to vote for content with their eyeballs. If they watch it, it stays on the air. If they don't watch it, it goes away. Although consumers don't always get exactly what they want, that's how democracy works: majority rules.

3)The quality programming argument. Because people "vote with their eyeballs," quality media tends to stay in business, while poor quality media does not.

4)The synergy argument. Because media companies control so many related things, consumers can benefit through convenience. For example, thanks to media deregulation, a consumer can now purchase digital television, high speed Internet, and phone service from the same company, and pay a bundled price on one bill.

5)The media diversity argument. Because there are so many different outlets these days--thousands of television stations, radio stations, alternative newspapers, and, of course, the Internet-- it doesn't matter so much if most of the media are owned by a few. Plenty of opportunity is out there for everyone to have a voice.


Arguments Against the Corporate Media System

1)The "market censorship" argument. Because the corporate media system is primarily concerned about profit and ratings, controversial ideas often do not get much or any media coverage. This is true of ideas that are far to the left, far to the right, or otherwise outside of mainstream conventions. In effect, the market "censors" these ideas.

2)The poor quality argument. Corporate media can hinder quality programming because it squelches innovation-- especially on media that are expensive to produce, like television. Someone may have a great idea for a television show, but because it hasn't been tried before, it's considered too risky-- so the network makes yet another batch of reality shows and sexy doctor shows instead.

3)The conflict of interest argument. Ideally, the media are supposed to be gatekeepers who keep tabs on the powerful people in society and prevent them from abusing their power. However, the media themselves have become the powerful people-- so how can they be expected to keep tabs of the abuse of power, especially when abuses of power relate to corporations?

4)The monopoly argument. When markets are unregulated and companies have a monopoly or near-monopoly on services, consumers can lose out because of higher prices and poor service. When a company controls a huge portion of the media in a given market, that's a monopoly.


Read more: http://medialiteracy.suite101.com/article.cfm/media_consolidation_ownership#ixzz0NXJSOESP

Who's fault is it anyway?

When considering the cause of more power concentrating in fewer companies, we may look no further than the US government.

When consolidation gets to the extreme, it is a monopoly. Ludwig von Mises, the voice of free market economics, stated, “Almost all the monopolies that are assailed by public opinion and against which governments pretend to fight are government made.”

In other words, the moment that the government is given power over the economy, with power to make or break a business or industry, lobbyists magically appear. Many lobbyists want to influence government to pass laws that will give their company advantages over their existing competitors. Others want laws passed that will set high, strict standards to new businesses, thus reducing the birth of potential competitors into the market. Most companies, however, want to get in good with the government just to maintain their existence, that the almighty government doesn’t dictate a law and mangle their profits. The mere existence of sovereign government power in economics presents instability and danger to industry.

Because many think the fault for consolidation is in the media itself, they try to implore government to make laws against it. They try to restrict further growth of these giants. However, what about promoting growth of the little company that wants to get in? Restrictions can and should be lifted from new businesses from entering the market. Then we don’t have to punish and restrict business, but give it more life and freedom. This will naturally tackle the “problem” of consolidation and increase the amount of competitors.

The culprits of media concentration aren’t Big Media. They just do what is possible to survive and continue to grow and improve their business in challenging times. By taking government out of the economics equation, media business, including the little guys, will flourish.

Big media isn't all THAT bad...

Fewer corporations having larger influence can be scary. It seems that most people are against the increasing power of the media, but with further consideration, you can see the benefits of its concentration.

One of the concerns with media outlets merging is that “[h]ealthy, market-based competition is absent, leading to slower innovation and increased prices.” First of all, even though the diversity of ownership has decreased, competition still exists and is probably just as intense as before, if not more so. And while competition certainly is a catalyst for innovation, capital – and a lot of it – is essential to finance that innovation. Big Media have more “disposable” capital to invest in technology, which is a risk that smaller companies, even if they had access to it, wouldn’t be as inclined to risk.

Opponents also point out the unwillingness of media companies to report news that puts them (or its owners) in a bad light. Despite the fact that companies naturally wouldn’t report unflattering information about themselves or their owners, their competitors are more than eager to. The fact that we have knowledge, and not merely suspicions, of corporations that have hid information from the public indicates that it will somehow find its way to the public through an alternative means.

Even though there are less competitors, competition is still alive and intense. Although media don't report things that will make them look bad (and who does?), their competitors will.

Funny video about Rupert Murdoch

Big Media

How much do they really own?

On the website of Columbia Journalism Review, a magazine for journalists, they have Who Owns What, where you can pick any of the major media companies and see just how much they really do own. I knew that Time Warner owned a lot of stuff, but not that much! I personally counted over 100 magazine publications under their control. Other companies included are Bertelsmann, Gannett, Viacom, Walt Disney, and many other big name media. Check out the list of over 59 companies to see how much influence they have in our daily lives.