Media in a commercial system ch 10 Media are businesses they seek profit first need to stay profitable How do they make their money Directly selling content to consumers apple 30 of every individual s thing they sell directly buying content movies songs on iTunes mags Indirectly selling consumer s attention to advertisers ads selling our attention to people who want to sell us things ads on CBS ads on FB product placement Advertising is major revenue source for the whole system A LOT of money involved in media system Big media conglomerates 2014 revenues Comcast NBCUniversal 68 8 B owns nbc why they make money largest cable provider in the us 40 to americans trying to buy times warner Disney ABC 48 8 B disney ed extreme disney profit of 8 billion why too many women and not enough shows to appeal to guys disney for boys disney extreme for men Time Warner HBO CNN TNT 27 4 B second largest cable provider turner network broadcasting time warner warner brothers television important player in tv shows owned time inc three different magazines print companies not making as much money as they used to spin off print properties as a sep company synergy Promotion and sale of different versions of a media product across the various subsidiaries of a media conglomerate 21st Century Fox FOX 31 8 B owned by rupert Murdoch own fox news networks tv and news properties outbid cbs for rights to pay for football shows targeted at mainstream white families News Corp WSJ 8 5 B sep news company inherited small newspaper chain and turned into profitable enterprise own wall street journal changed citizenship so he could buy tv stations and buy fox network most expensive newspaper why bc businessmen working on wall street need the news now its part of their job needs to be fast come out right when they need it National Amusements theatres privately held company have no idea how much they own sumner redstone don t have to tell fcc how much they made FCC Federal Communications commision an independent government agency that regulates interstate and international communications by radio and television and wire and cable and satellite FTC federal trade commission promote competition antitrust acts prevent monopolies from having too much power owns theater chains owned Viacom MTV 13 7 B CBS Corp 13 8 B heavily influenced by owner Gannett USA Today 6 0 B largest newspaper chains in country made more money this year than last year newspaper business isn t what it used to be iHeartMedia Clear Channel 6 3 B largest owner of radio stations cumulus second largest ap listen to radio through your phone own lots of radio stations one of major media orgs to force cell phone maker to put fm chi on phone to listen to radio instead of pandora Google 66 B why is this a media company own youtube google plus do advertising sell other people s content legitimately a media company Apple 182 8 B last year According to their annual reports download and pay for music through itunes legally movies rent movies parks and resorts Disneyland everything planner logistical california Disney World florida Disney resorts in Tokyo Paris Shanghai Hong Kong Aulani Hawaii resort cruise land island in the bahamas horns that sound like disney music Film Studios that they bought Walt Disney Studios Pixar started as a special effects company developing computer graphics for movies sold it to steve jobs he sold it to them for 7 billion Touchstone what would be the advantage to have diff movie studios especially doesn t say owned by disney disneys brand family friendly produce film for more adult minded violent films that don t fit disney brand released under touchstone pictures Marvel comics studios products music movies Media Networks disney ESPN 8 saw possibility of popular brand 8 diff espn channels ABC caps cities abc 8 ABC locals ABC Family Disney Channels Radio Disney ESPN Radio Disney Interactive social gaming site for preteens games playing diff disney games Club Penguin Epic Mickey Consumer Products branded stuff all disney products broadway massive c onglomerate that tries to entertain us in many ways Ownership why all the fuss if you own too many things does that give you too much power Freedom of the press is for the man who owns one A J Liebling you can have freedom to say what u want as long as you have the ability to get what you want to other people Purpose of ownership restrictions short answer question for test 1 To ensure a diversity of voices in the Marketplace of Ideas a multiple diff points of view in the media b if all pple n companies had same perspective lose out on other ways sing sit solutions i very few tv and radio stations owned by people of color ceos news directors men ii more likely to have diff views out there if have diff kinds of people iii media conglomerates all for profit only give us what we think making those decisions will be profitable for them 2 3 localism encourage local ownership of media competition cheaper prices for audiences whose stories don t you see very much in mainstream media gays offeding audiences and advertisers ellen degeneres came out on show pulled her from it from a business point of view why wouldn t they decide to have a show about asians bc its a small minority don t have a lot of political standpoint native americans Communications Act of 1934 rules for radio and tv for broadcast in the U S Defined airwaves as scarce public resource can be regulated bc airwaves are a scarce resource no one owns electromagnetic spectrum public resource not enough frequencies to all have radio stations opening for regulation ensure public resource used for private entities that benefits all of us ex local tv station in virginia ran story during 6 pm newscast inappropriate context porn in the news story bc of this law During Regulatory Era 1934 1996 Restrictions on number of stations owned max 7 stations only one per dma Restrictions on cross ownership TV newspaper tv station and newspaper in cross ownership of multiple media businesses by a person or market the same market corporation early radio stations started by before this rule growing tv station couldn t buy the newspapers in same place Ban on duopolies when own two stations or 2 networks in the same town Monopoly or oligopoly Antitrust laws designed to prevent one monopolies one company that dominates production and distribution in a particular industry industry former not latter oligopoly when industry dominated by just a handful of companies