Tag: ownership

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

The pluralist view of the media

Pluralists argue that power in democratic, free market societies is spread out among diverse competing interest groups, and not concentrated in the hands of a minority economic elite, as Marxists suggests. According to pluralists, no one group has a monopoly on power. Their view of the media reflects their view of power in society more generally.

Pluralism media sociology.png

Media content driven by profit

Pluralists argue that in democratic, free market economies different media companies must compete for customers, and so they must provide the kind of content those customers want in order to make a profit and survive. If a company fails to provide the kind of news and entertainment that people need and want, customers will simply stop buying their media products and go elsewhere, forcing that company out of business.

It follows that control over media content ultimately lies with consumers, not the owners of media, because the owners need to adapt their content to fit the demands of the consumers.

Media owners primarily want to make money and so they would rather adapt their media content to be more diverse and keep money coming in, rather than use their media channels to publish their own narrower subjective views and opinions.

Media content thus doesn’t reflect the biased, one sided views of media owners, it reflects the diverse opinions of the general public who ultimately pay for that media content. The public (being diverse!) generally don’t want one-sided, biased media!

Consumers determine content

From the pluralist perspective audiences are active rather than passive and not easily manipulated. They are free to select, reject and re-interpret a wide range of media content, and they increasingly take advantage of new technologies and new media to produce their own content.

It is thus ultimately the consumers of media/ the wider audience who determine media content rather than the media owners.

Journalists not controlled by owners

Finally, pluralists point out that on a purely practical level media owners of large global corporations cannot personally determine the content of all their media products, there are too many products and too many global-level management issues to keep them occupied. Thus producers, editors and journalists have considerable freedom to shape media content, free from the control of the big bosses.

Criticisms of Pluralism

  1. Ultimately it is still owners who have the power the hire and fire journalists and they do have the power to select high level editors who have similar views to themselves, which may subtly influence the media agenda.
  2. It still requires a lot of money to establish a large media company, and ownership remains very concentrated. There is relatively little journalism which is both independent and widely consumed.
  3. Owners, editors and most journalists share an upper middle-class background and a conservative worldview.
  4. The pressure to maintain profits has led to narrowing of media content – more towards uncritical, sensationalist entertainment and less likely to be critical and independent.