What is concentration of media ownership?

Concentration of media ownership is the trend towards fewer individuals and/ or companies owning a higher proportion of the media.

Increasing concentration of ownership has long been a concern of sociologists. For example, In 2004 Bagdikian pointed out the following trend towards increasing ownership of the media:

  • In 1983, 50 corporations controlled the majority of news media in the USA
  • By 1992, 22 companies owned and operated 90% of the mass media

By 2014, United States media ownership was concentrated mainly in the hands of six companies: Comcast, Disney, 21st Century Fox/ News Corporation, Time Warner and Viacom

In the United Kingdom in 2017 10 companies received 70% of the revenue generated by all media companies, and 40 companies received 92% of all of the revenue (source: Deloitte media metrics, 2017).

 

The following were the three largest media companies by revenue in the UK in 2017

 

How do we measure concentration of ownership of media? 

Looking at revenue share as the above examples do is only one way of measuring concentration of ownership, however, there are several other ways concentration may be occurring which are not measured simply by looking at how revenue is distributed.

Below I outline several different ways in which media ownership can become more concentrated 

Vertical Integration

Where one company owns all of the stages of production of media products – for example a company owning a film production studio, and the cinema where the film is shown.

Horizontal integration

Where one company diversifies to own more types of media – e.g. when a film production company also gets into book publishing.

Lateral expansion or diversification

When media companies branch out into non media areas – e.g. Virgin Media getting into trains and insurance.

Global Conglomeration

Where companies in one country buy up companies in other countries. News Corp, for example, owns media outlets in several different countries.

Synergy

Where a media product is sold in several different forms – often as a form of marketing. For example, a company produces a film for cinema, then a DVD, a T.V. spin off series, a sound track for download, maybe a cartoon strip and some action figures too.

Technological convergence

Where traditional media companies link with IT companies to make sure their media products are available across several different devices.

Final thoughts 

Intuitively it seems likely that there is increasing concentration of ownership, especially with the rise of Facebook, Google, Amazon and Apple, but at the same time it is difficult to say for certain given the complexity of the concept of concentration of ownership

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