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Lecture 4

Lecture Four: Mass Media and the Economy

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McMaster University
David Young

Mass Media and the Economy: Ownership of Media Organizations September 12, 2013 – September 24, 2013 Major Types of Media Ownership • Public Ownership o In Canada, some media organizations are under public ownership o Example: Canadian Broadcasting Corporation (CBC), National Film Board (NFB), TV Ontario (TVO)  Owned by the Canadian public  Funded by the state through tax revenues o Under public ownership, there is a particular goal – to provide a public service o Treat audiences as citizens  May put on programming that may not attract large audiences  Example: Programming for Aboriginal peoples – will not attract large audiences, but will treat audiences as citizens • Private Ownership o Most Canadian media organizations are under private ownership (CTV, Rogers, Quebecor) o These are all private companies o Funded through private capital and advertising revenues • Goal under private ownership to make an economic profit • They address all audiences as consumers o Aim to attract large audiences Types of Private Media Ownership • Independent Ownership: exists when control over a small media organization rests with an individual or a family and there is no connection to other organizations o Concerns: News coverage through the locally owned media. The individual may have bias in news coverage o The owner of the media would not be portrayed correctly in the media – why would he provide coverage of himself if he was the owner of that particular media? o Example: CHCH  For many years, it was independent  Now, CHCH is owned by the company Channel Zero  This is the pattern that we see with all of the independently owned media (or most of them) o Independent ownership with newspapers, radio stations, or television stations used to be commons, however, independent ownership no longer exists • Horizontal Integration: exists when a company owns a chain of media organizations in different locations that are doing the same type of business o SUN media is Canada’s largest newspaper chain (owns currently 43 daily newspapers across the country and also owns 250 weekly community newspapers) o Concerns: Result in loss of local jobs and l
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