MC 101 1nd Edition Lecture 4 Outline of Last Lecture 1. American Soldier Study2. Studies into the effects of TV3. Critical Cultural Model 4. Types of Media Effectsa. Message Effects b. Medium Effects c. Ownership Effectsd. Active Audience Effects 5. Theories of Media and Society a. Functional Analysisb. Agenda Settingc. Uses and Gratificationsd. Social Learninge. Spiral of Silence f. Media Logicg. Cultivation Analysis6. Mean World Syndrome7. Media and Political BiasOutline of Current Lecture 1. Transforming the Media World 2. Private Ownership 3. Growth of International News 4. Big Media 5. Big Players 6. Disney 7. News Corps8. Time Warner 9. Viacom/CBS10. Bertelsmann11. The New Players a. Comcast/NBC Universal b. Google c. Apple 12. Other Major Players These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.13. Who Controls the Media 14. Long Tail v. Short Tail Current LectureChapter 3 – Media Business Transforming the Media World - Steve Jobs: Computer, NeXT, Return to Apple, iPod, Recording iTunes, Pixar form Lucas, Disney Buy, iPhone o Voted out of apple o Created NeXTo Went back to apple o Went into really innovative stuffo Bought Pixar and Disney - Robert Johnson: BET, sell to Viacom o Bought BET o Sold it to Viacom o Focused on black audience - Ted Turner: CNN, WTBS, TNT, Turner Classic Movies, Cartoon Network, sell to Time Warner oPrivate Ownership - 1683: First printing press in North American colonies - 1690: First newspaper punished in colonies- 1830s: Penny Press begins - 1840s: William Randolf Heart, Joseph Pulitzer- 1920s: David Sarnoff NBC, CBS William PalevGrowth of National News IMPORTANT MAGAZINES - Magazines: First national medium late 1800s - Radio Networks: 1920s David Sarnoff NBC Red and Blueo Develops network model where he makes arrangement with emerging stations o He’s got entertainment, and everything right in new york, and content o Makes connections with states all over US o Network operations - TV Networks: Early news, half-hour evening news 1963 o Wasn’t till 1963 when people could do a whole national half-hour news segment - CSPAN 1979; CNN 1980- Concentrated ownership; good selectionBig Media IMPORTANT INTERNET ACCESS 90%- Consumers have more media choices than ever before - 2011: Cable available to 95% of homes (today about 75% use it); 24% have satellite; 90% have access to internet at home, 85% in US have mobile phone o Cable transformed the world - The number of companies providing those choices has declinedBig Players - 1983: 50 companies control more than half od media - 1987: Shrink to 29 companies - 2004: 5 control majority of media - Disney, News Corporation, Time Warner, Viacom/CBS, Bertelsmann- Also: Comcast: Buy buy 51% of NBC Universal from GEo What does Comcast do: distribute/middle men o Have arrangement with different channels, like lifetime- Google: 96% of revenues form advertising: 3rd largest based on income o Not traditional media o Started as search engine - Apple: Superior hardware; distribution iTunes Disney IMPORTANT - 2010 Sales: $38.1 billion- Major player in broadcast TV, cable, movies, theme parks; synergy and convergence - Home of Mickey Mouse, Pixar, Marvel Entertainment & Lucasfilm; ABC, ESPNo Owns ABC and ESPN- Pioneer in new media distribution; Steve Jobs was largest single stockholder/member of BOD News Corporations ELEMENTS OF NEWS CORPS- Fiscal year 2010 Sales: $33.4 billion - Major player worldwide in all media - Home of fox news, wall street journal, fox broadcasting, British tabloids; 20th century Fox - Controlled by Rupert Murdoch and family - News of the World phone hacking scandal killed paper, hurt News Corp - Vertical integration, synergy, multiplatform - In process of splitting into 2 companiesTime Warner - 2010 Sales: $26.9 billion/down $20 billion in 2008- But went from $13.4 billion loss in 2008 to $2.6 billion profit in 2010- Improved profitability by selling off AOL and Time Warner Cable - Purchase Turner 1996- Major Player in film, television, cable, publishing, and online content - Home of Scooby Doo, Harry Potter, Batman - Bigger isn’t always better: Time Warner/AOLViacom/CBS- Combined 2010 Sales: $23 billion - Major players in broadcast television, cable, movies- Home of MTV networks (MTV, VH2, Nick) - CBS owned Viacom; then Viacom owned CBS; now separate companies for financial reasons Bertelsmann IMPORTANT - 2009 Sales: $22 billion- Major player in publishing; also magazines and European broadcasting - 90% RTL Group; Music Group - Home of American Idol and Idol programs globally - Privately held German company The New Players- Comcast/NBC Universal - Google - Apple Comcast/NBC Universal IMPORTANT - Comcast had 2010 sales of $37.9 billion, on par with Disney - Major player in cable services, cable networks, movies, broadcast TV- NBC Universal’s biggest value is for cable channels Google - 2010 revenue of 29.3 billion; falls between News Corp and Time Warner in sales- Big service in search, major source of revenue is highly targeted online advertising; AdWords; AdSenseo Companies buy words - Automated aggressor of news Apple - 2010 revenue of $65 billion o 25 billion from mobile phone (iPhones)o 8.2 billion from iPodso 4.9 billion from music and video saleso 4.9 billion from first year sales of iPad- Redefines how we consume and use media Other Major Players - Gannett Co. Inc.: Largest newspaper publisher- Clear channel communications, Inc.: Larger radio station owner Who Controls the Media? IMPORTANT - Owners: strong control; Disney, Depp - Advertisers: influence; tobacco co- Government: china and Murdoch, BBC- Special Interest Groups: Danish cartoons - News Sources: GQ: Hillary and Bill- Audiences: Audience test, tune in Media Econ: Long Tail Media vs. Big Media (Short Head Media) - Long Tail o Portion of a distribution curve where a limited number of people are interested in buying a lot of different products- Short Head o Portion of a distribution curve where a large number of people are interested in buying alimited number of products Characteristics of the Long Tail: 6 Principles- High number of goods; more niche goods than hits- Low cost of reaching markets - Ease of finding niche products Long Tail Vs. Short Head IMPORTANT - WalMart: 4,500 CDs: 200 make 90% of sales - Rhapsody: 13 million o 25,000-100,000 best seller songs at least 250 a month; 25% of saleso