|
|
The media industry as a whole has seen four broad developments:68
1) Growth. Due to mergers and acquisitions, individual media firms are larger than ever. Some of Viacom’s brands—such as BET, MTV and Shockwave—are a good example of how media firms have become larger than ever.69
2) Integration. The new media firms have integrated horizontally (by working in multiple forms of media), vertically (by working in multiple stages of production and distribution, or both).70
“Google’s AdWords created a new model by combining a media company—Google’s search results and its network of AdSense affiliate websites—with an advertising agency, i.e. advertisers buy ads directly from Google through its AdWords platform.” 71
Time Warner’s operations in multiple forms of media—such as AOL Internet, HBO broadcasting and Time publishing—are examples of horizontal integration.72
3) Globalization. Major media firms have become increasingly global in scope. The Tokyo-based firm, Sony, has a motion picture production and development division, Sony Pictures Entertainment, which operates throughout the world.73
4) Concentration. The ownership of mainstream media has become increasingly concentrated.
Free Press’s catalog of media concentration74
Learn More:
Tom Phillips, Director of Search and Analytics for Google, discusses the impact of the Internet on print media and books. http://vimeo.com/30041049
Seth Pinsky, President and CEO of the New York City Economic Development shares his thoughts on the transition from traditional media to digital media http://www.levininstitute.org/media2020.cfm
|
What are some advantages and disadvantages—both economic and social—of media concentration? |
68 Croteau, David and Hoynes, William. The Business of Media. p. 77
69 Viacom: Our Brands.
70 Horizontal and vertical integration are not necessarily mutually exclusive.
71 Karp, Scott. “The New Vertically Integrated Media And Advertising Companies/” Publishing2.0. May 18, 2007.
72 Time Warner: Businesses.
73 Sony Corporation of America: Outline of Principal Operations.
74 Free Press is an American, non-profit organization that advocates media reform.