Positives of Concentration
1) Decreases cost of producing content
For example, two years ago Summer, ABC merged its sports unit with the ESPN sports unit. They reduced the combined staff by 25%.
2) "Synergy" increases exposure of media to audiences
ESPN runs promotions on ABC, and ABC runs promotions on ESPN
1) Limits diversity of opinion and limits exposure to diverse content
For example, the top four radio station owners control 70% of all radio listenership
2) Limits sources of information
For example, in 1920, 700 of the largest cities had competing newspapers. Now, fewer than twenty cities have competition.
3) Reduces number of gatekeepers
For example, three companies own all the cable news networks
4) Eliminates any realistic feedback other than economic
5) Fixes prices at arbitrary levels
For example, Clear Channel has a 95% market share of concert tickets sold in the US. Concert ticket prices have risen 50% more than the price of CDs since 1996.
Go to the Readings and click on the four articles on Concentration of Ownership.