1) Concentration of Ownership

2) Globalization

3) Audience Fragmentation

1) Concentration of Ownership

Mergers, acquisitions, and buy outs have reduced the number of media companies.

Click this link to open an interactive web page showing just how much media is controlled by just six companies. Ownership Chart: The Big Six

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

Negatives

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.