COM 160 Lecture 2 Outline of Last Lecture II. Connect Questions from chapter 1III. Connect Assignment notes from chapter 1IV. Chapter 1A. Mass CommunicationB. Large and Diverse Audiences C. Describing CommunicationD. Vocab wordsOutline of Current Lecture I. Media EconomicsA. Telecommunications Act of 1996a. Goalsb. Outcomec. ConsequencesII. Media Industries are in turmoilIII. Chapter 2 vocabCurrent LectureI. Media Economicsa. Media is omnipresentb. Regulation = Control of mediai. Can serve market interestsc. Deregulation = Removing/loosening government restrictionsd. Telecommunications Act of 1996i. People that voted never read the billThese 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.ii. Goals:1. Produce competitiona. Lower prices for consumersi. $333 billion in long distance / $32 billion in local phone rates / $78 billion cableb. Diversity of opinionc. More jobs  1.4 milliond. Help economy  $2 trillioniii. How’d it go? 1. Bad2. Made without consulting and/or informing the public3. Special interest group lobbying and corporate donations issues4. Made with 1.5 hours of discussiona. Congress was railroaded  No one read it5. Couldn’t foresee dramatic changes and advances in the industryiv. What changed? 1. Lifted the limit on how many radio stations on company could own from 4 to 82. Lifted the number of local TV stations any one corporation could own, and expanded the limit on audience reach from 25% to 35% reachv. Consequences?1. HUGE media mergers and increased concentration 2. Less diversity3. Higher prices4. TV consequencesa. Network televisioni. Less than 6 companies control 75% of prime-time viewingb. Cable TVi. Deregulated cable rates increased pricesii. 90% of top 50 cable stations are owned by broadcast networks.5. Radio Consequencesa. Led to media mergers, conglomerations, and monopoliesb. Did not increase competition; dramatically shrunk iti. Issues with diverse voices in radioii. Issues with community safetyc. Minority ownership declined 14% d. Significantly reduced local ownershipi. Can’t compete with huge corporationsII. Media industries are in turmoil (Because technology has provided new ways to deliver content)o Ex: Newspapers can now be read online via laptop, computer, iPad, Tablet, etc.Vocab- Day-and-Date-Release = Simultaneously releasing a movie to the public in some combination of theater, video-on-demand, DVD, and download- Platform = Means of delivering a specific piece of media content.- Movie attendance in 2011 dropped 4.5% from 2010- Video Game industry declined 8% between 2010 and 2011- Newspaper circulation has dropped every year since 1998o Sharpest declines in young people (under 30)- 152 magazine titles disappeared in 2011- Media consumption is at an all-time high- Children 8-18 years old spend more than 10 hours and 45 minutes a day with media content.- Media-Multitasking = Simultaneously consuming many different kinds of media- Americans receive 11.8 hours of information- Convergence = The erosion of traditional distinctions among media- Conglomeration = The increase in the ownership of media outlets by larger, non-media companies- Number of foreign reporters in Washington has grown 10 times over the last 20 years- Concentration and conglomeration are inevitable and necessary.- Economies-of-Scale:o Bigger can sometimes be better- Conglomeration argument: Revenues from a conglomerate’s non-media enterprises can be used to support quality work by its media companies.- Oligopoly = A concentration of media industries into an even smaller number of