Ralph E. Hanson, Second Edition
HomeWeblogChaptersCh. 1: Living in a Media WorldCh. 2: The Media Business: Consolidation, Globalization, and the Long TailCh. 3: Mass Communication Effects: How Society and Media InteractCh. 4: Books: The Birth of the Mass MediaCh. 5: Magazines: The Power of Words and ImagesCh. 6: Newspapers: Reflection of a Democratic SocietyCh. 7: Sound: Music and Talk Across MediaCh. 8: Movies: Mass-Producing EntertainmentCh. 9: Television: Broadcast, Cable and BeyondCh. 10: The Internet: Mass Communication Gets PersonalCh. 11: Advertising: Selling a MessageCh. 12: Public Relations: Manufacturing the NewsCh. 13: Media Law: Free Speech and FairnessCh. 14: Media Ethics: Truthfulness, Fairness, and Standards of DecencyCh. 15: Global Media: Communication Around the WorldAbout the BookAbout the AuthorHelp
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Chapter 2: The Media Business

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Dating back to colonial times, the media business in the United States has operated under a model of private ownership. The first colonial papers, under the direction of Benjamin Harris and Benjamin Franklin, were distributed throughout the colonies despite the threat of punishment from the British authorities, if the newspapers criticized the authorities too keenly. Electronic media--the telegraph, radio, television, and eventually, the Internet--continued under the same ownership model. While government regulation was, and still is present, the United States government generally plays a hands-off role in the day-to-day operations of media corporations, both big and small.

One increasingly significant trend in the United States media during the last quarter century is that of corporate consolidation. Currently, only six major international corporations own the majority of the media output in the United States. These corporations are Time Warner, Disney, News Corporation, Viacom, Bertelsmann, and General Electric. This consolidated ownership is criticized for the small number of companies in control of such a large portion of media content production and distribution in the United States. Yet, paradoxically, consolidation is also praised for the diversity in content it brings to the American media consumers. The consolidation has provided an opportunity for these large companies to use the many branches of their “corporate family tree” to promote the company as a whole.

One view of the current media environment is the short head, long tail dichotomy. The short head represents the large media companies that provide popular content to the traditional large groups of consumers. The long tail companies, while much smaller in comparison to their gigantic corporate counterparts, deliver specialized media content to a smaller, more geographically spread out, but very interested audience. The media niche that these companies have been able to fill has made their collective efforts almost equal to that of the larger, individual media corporations.

When evaluating who controls our media, a small group of stakeholders can be identified, with each playing a significant role in determining the media that is available. Large owners such as Time Warner and Gannett have a significant say as the producers and distributors. Advertisers, whose dollars serve as the lifeblood of the modern media, have the power to shape the media simply by turning on or shutting down the flow of money to media outlets. The government, while playing a behind-the-scenes role most of the time, has a significant task in regulating the content delivered to media audiences. News sources that put a face on a story, or a celebrity that specifies the conditions for an interview, play a significant role in shaping the news. Finally, and certainly no less significant, are the audiences. Audiences not only control the media by voicing their likes and dislikes, but also by having the power to purchase or demand certain types of content when and where they want it.

Learning Objectives

•  Understand the historical role of private ownership in the United States media, and how this type of ownership has shaped the current media environment.

•  Be able to recognize the major media companies, what they own, and how they operate.

•  Understand the importance of synergy and vertical integration usage inside the large media corporations.

•  Know the difference between the short head and long tail media companies and what they offer to media consumers.

•  Know the various stakeholder groups who have control over the media in the United States.

Review Questions

1. Pick one of the Big Six media companies, explain what they own, and provide examples of how they take advantage of their various holdings to promote the corporation.


2. Identify a long tail media company and describe what type of media content they specialize in and who their target audience is.

3. Rank the groups that were identified in the chapter as having control over the media from greatest control to least control. Provide detailed support for your rankings.