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ISU COM 160 - Business of Music
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COM 160 1st EditionLecture 2Outline of Past Lecture I. Mass CommunicationII. Who does mass communication appeal to?III. Culture and mass mediaIV. What effect does this have? Outline of Current LectureI. TermsII. Concentration of Ownership III. Acts: Communication Act of 1934 & Telecommunication Act of 1996IV. Video: Behind the business of pop music Current LectureI. Termsa. Media Omnipresenti. Understand media is an industryii. We consume more media now then ever before because it’s omnipresent and therefor is everywhere1. Internet, radio, tv etc. iii. There are consequences of omnipresent mediab. Reulationi. Control of media (through rules and procedures) 1. It’s in the publics interest 2. It can serve in markets interest tooc. Deregulation i. Removing/ loosening government restrictions II. Concentration of Ownership a. Aka media consolidation/media convergence  fewer individual or organizationscontrolb. Conglomeration of ownershipi. Ex used in class: Bare aspirin buys a media company because it looks profitableThese 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.1. This is hugely problematic; media creates our reality (voting, public policy), if a company like bare aspirin buys into the media, itcan impact our views2. Media is not like anything else- if a business/company has interest in buying into the media, they will gear it towards only wanting a profit, therefore it will be geared towards entertainment issues and lead to a lessening of investigative journalism and important issues. c. Concentration of ownership i. Couple companies own everything d. Conglomeration & Concentration of ownership leads to oligarchyi. Oligarchy1. Tons of companies funneled into one another e. Business insider and these six considerations i. URL: http://www.businessinsider.com/these-6-corporations-control-90-of-the-media-in-america-2012-6ii. 6 companies control media1. GE2. News corp. 3. DInsey4. Viacom5. Time Warner6. CBSiii. Public has illusion of choices iv. This is a monopoly of us markets v. News corp. is Murdoch’s- and it’s all over the world f. Why is it important?i. Media ownership generally close to complete state control over information is both direct and indirectIII. Actsa. Communication Act of 1934i. Radio before this act was failingii. With this act there was a promise to give time for education and religioniii. Ambiguous guidelines on indecency iv. FCC licenses required (can’t swear)v. All in all, radio was aimed for the common good. b. Telecommunication Act of 1996i. Proposed Goals:1. Produces competition- which is good2. Lower prices3. More jobs4. Diversity of opinion5. Helps economyii. What changed1. Lifts limit on how many radio stations 1 company can own2. Lifted amount of local tv stations 1 company can own and expanded the limit on audience it reaches3. This was a large act- those who voted on it didn’t actually read ita. Also, these companies are super filthy rich- is it possible that people were paid off to vote one-way? iii. The Next Day1. Huge media mergers2. Decreased jobs3. Decreased the economy4. Phone rates and cable rates increased (therefore is wasn’t cheaperfor the public like the proposed bill stated) 5. Lesser diversity IV. Video: Money for nothing: Behind the business of pop musica. (Sorry, I couldn’t find a solid link, you can rent it online though)b. Kanopy streaming companyc. Telecommunication Act makes it hard for indie artists to break out d. Corporationsi. Takes culture from people and sells it back to people ii. Musicians are 1 of many commodities iii. 5 conglomerates control 80% of music industry1. BMG2. Sony3. AOL Time Warner4. Vivendi5. Emiiv. Globalization of companiese. Talent and creation is no longer the focus- purely entertainmentf. Music isn’t unionized (therefore they receive know health benefits etc.) g. Gatekeeper Promotion (consolidation) i. Radio, tv& touring1. All controlled by record companiesii. If a musician wants to play at a certain venue—they have to go through a certain promoter which is linked to many specific companies therefore—we have a monopolyiii. The BeeGees with their hit “Stay Alive” 1. The song came out a month or two before the hit movie “SaturdayNight Fever” came on2. This made a cycle- the song came out which helped promote the movie- however when people saw the movie they wanted to have the album & song. iv. With Production and Marketing-marketing is now first1. Synergy- the artist can be the linking point between a product andthe consumer2. Use of psychological logic (I do not hate, nor am not a fan of Beyonce- however when I hear “Crazy in Love” I always think of Pepsi from when I was a youngin’ https://www.youtube.com/watch?v=eY0tRELIdJU in case you don’t know what I meanh. Telecommunication Act ’96 i. Three super corporations control radio1. SAMEa. Musicb. Orderc. Voicesd. Songsii. Where’s the variety? i. Media wants us to feel bad about ourselves therefore we will buy products that can make us feel betteri. Ex: Suzy listens to a certain musician who is also promoting a make-up product—Suzy realizes she wishes she was that skinny and her face has flaws—Suzy is not confident—Suzy buys things to help (clothes, make-up etc.) because she wants to be like this musician and uses her same


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ISU COM 160 - Business of Music

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