the media and economic pressures ryan brundrett/cody graham/christopher renner/jennifer wells/mary...
TRANSCRIPT
The Media and Economic PressuresEconomic Pressures and Social
RESPONSIBILIT Y
Ryan Brundrett/Cody Graham/Christopher Renner/Jennifer Wells/Mary Werick
QUOTEWORTHYmedia buzz
I wonder if the media is incapable of covering itself. Theykeep Americans in the dark on this issue.FCC Commissioner Jonathan S. Adelstein, in Lane, Terry. "Copps Flirts With Releasing Media Ownership Draft to Public." Communications Daily, May 12, 2003
The gathering of more and more outlets under
clearly can be an impediment to a fr ee and independent press. Former CBS News anchorman Walter Cronkite, in Yang, Catherine. "The FCC's Loner is No Longer
So Lonely." BusinessWeek, March 24, 2003.
The profit motive is not only fundamental to our ability to reward
shareholders and pay employees; it’s fundamental to excellent journalism. Far from corrupting the craft, profits
enhance it. Expansion drives diversity and diversity protects and strengthens our craft. --Lachlan Murdoch, son of media mogul Rupert Murdoch.
ETHICSby Louis Alvin Day
The profit motive and competition are the economic mainstays of western democracies.
When economic considerations become the motivating agent for why one does something, then ethical questions arise, especially when the commercial interests are allowed to dominate the social obligations of the media.
The issues then is how to balance economic pressures against individual or institutional duties to others.
PRESSURESin the economy
Financial Supportersinvestors,
advertisers, clients, subscribers and customers.
the competitionThe
the public
OVERVIEWfor today
We will look at economic pressures from the following points of view.
Concentration of media ownershipMass media and marketingThe role of advertising
Product PlacementGroup discussions
Conclusion
Report on findings
Challenges of cyberspace
MEDIAconsolidation
HISTORYIn 1953, 50 corporations controlled a vast majority of all news media in the US
Ben Bagdikian was called an “alarmist” for pointing this out in his book, The Media Monopoly
In his 4th edition published in 1992, he wrote “In the US, fewer than two dozen of these extraordinary creatures own and operate 90% of the mass media”- controlling almost all of America’s newspapers, magazines, TV and radio stations,books, records, movies, videos, wire services and photoagencies.
Bagdikian predicted then that eventually this number would fall to about half
a dozen companies. This was greeted with great skepticism at the time.
When the 6th edition of The Media Monopoly was published in 2000, the number had fallen to six. Since then, there have been more mergers and the scope has expanded to include new media like the internet market.
WHO OWNS THE MEDIA
http://www.youtube.com/watch?v=MfRXaORNSK8
The job of media’s new corporate bosses is to maximize The job of media’s new corporate bosses is to maximize profit for shareholders, not to provide greater choice and profit for shareholders, not to provide greater choice and diversity for consumers.diversity for consumers.
http://www.freepress.net/ownership/chart/main
http://dialogic.blogspot.com/2009/01/rich-media-poor-democracy-researching.html
Congress overturned the FCC’s 2007 media consolidation Congress overturned the FCC’s 2007 media consolidation ruling.ruling.
In 2004, Bagdikian's revised and expanded book, In 2004, Bagdikian's revised and expanded book, The New Media Monopoly,The New Media Monopoly, shows that only 5 huge corporations -- Time Warner, Disney, Murdoch's News shows that only 5 huge corporations -- Time Warner, Disney, Murdoch's News Corporation, Bertelsmann of Germany, and Viacom (formerly CBS) -- now Corporation, Bertelsmann of Germany, and Viacom (formerly CBS) -- now control most of the media industry in the U.S. General Electric's NBC is a control most of the media industry in the U.S. General Electric's NBC is a close sixth.close sixth.
F.A.I.R. Media Consolidationhttp://www.youtube.com/watch?v=OFqKCRl0Un0
Taken from: Outfoxed: Rupert Murdoch's War on Journalism. Media analyst for FAIR Peter Hart discusses the effect of media consolidation on journalism. http://www.outfoxed.org/
Fairness and Accuracy in Reporting www.fair.org
Publishes Extra - magazine
Produces CounterSpin CounterSpin (30-minute weekly podcast)(30-minute weekly podcast)
WHO IS LEFT OUTThe state of female and minority ownership in the
broadcast sector is even more shocking compared to other industries. While female and minority ownership has advanced in other sectors since the late 1990s, it has gotten worse in the broadcast industry.
Women owned 28% of all non farm businesses in 2002, but currently owns less than 6% of commercial broadcast TV stations.
Minorities owned 18% of all non farm business in 2002, but
currently own approximately 3% of commercial broadcast television stations.
Source: Source: Out of the Picture 2007: Minority & Female TV Station Ownership in the United StatesOut of the Picture 2007: Minority & Female TV Station Ownership in the United States
There has been no improvement in the level of minority broadcast TV ownership since 1998, even as the total universe of stations has increased by approximately 13%
At the same time, there has been a marked decrease in the total number of black or African American owned stations- dropping nearly 70% since 1998. In numbers,
in 2007 only 14 of the 45 African American owned stations in 1998 remained.
1998 FCC Cross OwnershipPromethus Radio Project v. FCC
Was heard and adjudicated by the US Third Circuit Court of Appeals in 2003 and 2004
The majority ruled 2-1 to throw out the FCC’s attempt to raise the limits of cross-ownership of media
The court ruled that a “diversity index” used by the FCC to weigh cross-ownership (of radio, TV, and newspapers) employed several irrational assumptions and inconsistencies
TV Newspaper Cross OwnershipMark Cooper (2007) in reference to the Promethus Radio Project Concludes:
TV and newspapers are the two most important sources of local news and information by far
The ban on such mergers was the longest standing of the rules that the FCC is considering
Source: Source: The Case Against Media Consolidation: Evidence on concentration, localism and diversity. The Case Against Media Consolidation: Evidence on concentration, localism and diversity. Mark Cooper, Ed. (2007). Donald McGannon Center for Communicaiton Research, Fordham Mark Cooper, Ed. (2007). Donald McGannon Center for Communicaiton Research, Fordham University.University.
The FCC proposed the most radical change in this rule-
allowing newspaper- TV combinations in virtually every city in America
In rejecting the FCC’s cross-media limits, the Court devoted a great deal of attention to the FCC’s faulty reasoning and
flawed analysis of media markets
Cooper shows that mergers between newspapers and TV
stations in the same market pose a grave threat to democratic discourse
In antitrust terms, these mergers result in increases in market concentration that raise significant competitive concerns and are likely to create or enhance market power.
In terms of the Communications Act and First Amendment jurisprudence, the newspaper-TV combinations that result dominate the local market raising concerns about undue
economic concentration and inordinate influence over public opinion.
THE ALLIANCE OFmass media
According to Day…
[As applied to the media, the marketing concept holds that all departments, including news,
must contribute to the financial well-being of the organization.]
Naturally, New stations want to maximize their profits and using the news avenue is a the way to do it.
One Major fundamental objective of any newspaper, magazine, broadcast station, movie studio, or cable system is profit.
One Major fundamental objective of any newspaper, magazine, broadcast station, movie studio, or cable system is profit.
TODAYDue to the mass decline in circulation and profits of newspapers, they have been driven to marketing for aid… to reclaim their audience appeal
The wall that once separated editorial from advertising has crumbled
Editors are sitting down with marketing and advertisers to strategize for revenue.
Among the editors’ responsibilities is the development of ad-driven special sections No Longer is the news produced merely as a public service.
It must be sold to the consumer and must contribute its share to the success of the marketing plan of the overall operation.
There is now a high use of graphic violence, tragedies, and sensationalism in pursuit of higher ratings for higher profits
In a recent survey… 75% held entertainment to be more important that education of readers
So now the question is… Give people what they want… or… what they need as citizens. Entertain… vs.… educate and inform?
Public interest seems to have subordinated to economic interest
When commercial pressures jeopardize journalistic standards, then serious ethical questions must be addressed
Is It All About Ratings?Day’s CNN Example:
CNN and Time magazine featured a story accusing the US Military of secreting using nerve gas against defectors during Vietnam. The accuracy of the story was highly questioned by many, protested by the military, and a full investigation sent underway by the Pentagon. In the end CNN retracted the story and the 2 producers responsible for it were fired. “Did CNN cut corners to make a big splash with newsstand” to make huge revenue increases…?
Day’s OJ Simpson Example: The case received more intense coverage than any event since the
Persian Gulf WarLive coverage of the preliminary hearings shot ratings up like crazy!This was entertainment masquerading as news, that trivialized real news.
…the presidential visit to Europe at this same time got trivialized.…the news says it was justified because it was public interest
The alliance of Marketing and Media Seems inevitable today….
Doesn’t the newsroom and business side of journalism depend on each other for success? Good journalism and Good business simply are not mutually exclusive todayTo compete in the business world today, one must master the principles of marketing. Without profit, any media venue will not last very long.Profit allows media to invest into making their business better,
more valued, and successful.
ENTERTAINMENT
Should news programs be used as promotional vehicles for entertainment divisions?…NBC, CBS, ABC all put a lot of time into
their entertainment programs…a show is a cultural phenomenon and therefore newsworthy!…But does it compromise the integrity of the media?…Clearly, Entertainment is driving news decisionsAdvertorials- news, features paid for by advertisers but cloaked in editorial contentInfomercial- program length commercials—HUGE profit makers for media…referred to as “Editorial Pollution” blurring the line b/w advertising, entertainment, and editorial content
MEDIA ETHICS
Some media like ABC and CBS will not initiate critical stories that will negatively affect their sources of profit.So an ethical question arises … will these news organizations stand up for their obligations against such institutions?Will they choose their own self interests… or their moral duties to the welfare of society?It comes down to the SOCIAL RESPONSIBILITY of the Journalist
THE ROLE OFadvertising
[Advertising] in it’s impact on the economy, is
outranked only by militarism. In all other aspects
of social existence, it’s all pervasive influence is second to none. -- American economists Paul Baran and Paul Sweezy
Source: http://www.suite101.com/article.cfm/advertising/40264
Advertising is the economic support for the mass media and directly effects the quality of media content
Advertising’s economic influence covers at least 4 areas:
Advertising space v. non ad content space
Advertisers financing
Content control
Advertorials
Advertising’s Economic InfluenceAdvertising Space
Quantity of commercial material effects amount of space available for news/entertainment content
Newspaper editors arrange editorial content in remaining space after advertisements have been made.
In TV, stories are slotted around advertisements, limiting the amount of time for each segment
For entertainment TV, programs are built up to dramatic peaks before an advertisement break
Advertiser’s Financing
Media depend on advertising as a major source of revenue
Without advertising, the media would need to rely on the government or the audience to pay the necessary costs
Relying on advertising also has its pitfalls:
Advertiser budget cuts
Advertisers switching from one medium to another
Content Control
Advertisers have content control over media content they support
Under threat of advertisers pulling support, media managers will remove or edit unflattering content
Advertisers will pull support when the media show controversial content for fear of being negatively associated
Advertorials
Advertorials are advertisements presented as an objective opinion editorial piece
Conglomerate synergy v. conflict of interest
ABCNEWS.com mixed historical footage from Pearl Harbor, the historical event, with clips from “Pearl Harbor” the movie for a documentary on a Webcast about Pearl Harbor
Advertainments are advertisements presented as entertainment
http://www.youtube.com/watch?v=tJrq-ZwBehA
Sources: http://www.ojr.org/ojr/ethics/1017957293.php, http://www.usatoday.com/money/advertising/adtrack/2007-10-14-movie-ads_N.htm
CHALLENGESof cyberspace
Privacy ConcernsNew media not fully understoodNo successful way to advertise, yet
Study done by John Boyd of Yahoo and Christian Rohrer of Ebay
http://www.useit.com/alertbox/20041206.html
What’s good?
Advertising Online
Online video as opposed to paid search
- http://www.youtube.com/watch?v=5rtiHiGmoxk
OPPORTUNITIES
WEB 2.0
http://www.youtube.com/watch?v=b4IwvzkiFCw
Facebook and other social networking sites
YouTube
The Internet v. Other Media
Milenials (ages 14-25)
http://faculty.jmc.ksu.edu/gould/academic/classes/campaigns/days-new/05_use_chart.jpg
PRODUCTplacement
After E.T. was famously coaxed out of the closest with Reese’s Pieces, sales of the loveable candy
jumped 65%
Companies pay millions of dollars for the exposure offered through product placement
Fuller! Go easy on the Pepsi!
Contract or no, I will not bow to any sponsor.
Somebody get the kid a Happy Meal!
BUT! Despite being lucrative, there is much
controversy surrounding this practice…
People are concerned it [blurs the lines between entertainment and commercial]
“Disrupt the artistic elements of the film by focusing on products”
David Lynch is pissed!