Study Guides (238,380)
United States (119,754)
MC 2000 (39)
All (29)

Exam 2 Notes

16 Pages
Unlock Document

Louisiana State University
Mass Communication
MC 2000

0918 Ch 5 CONGLOMERATESBLURRED MEDIA BOUNDARIESRECALL media literacypower90 of all the media you consume ex music media gaming is controlled by 6 companies General Electric News Corporation Disney Viacom Warner Brothers CBSDisneywants to own all different kinds of things ex owning the Muppetshorizontal integration Why do they do this They want diversification chances at making profits in all of these different areasBasics of Mass Media EconomicsConglomerationcombination of verticalhorizontal integration NEW TWIST on verthor integration The big 6 exists bc of this strategy large companies that own lots of smalllarge businesses but theyre very different types of businessesMany media outlets share a parentConglomeration leads to consolidation of ownership powerex Disney owning all the major sports networks NBA ESPN NASCAR NFLsaves money because its all the same content you can put your ESPN adds on your NFL sites its all under 1 umbrellaThis is a process that isnt static this is constantly happeningConsolidation of power is constantly happening all of these companies are constantly looking for more companies to buy so that there are fewer ones out there on their ownHOW DID THIS HAPPENDeregulationthere were laws in the US that said how many companies one company can own these laws were undone deregulatedDeath of FinSyn Rules 19701995FinSyn prevented TV networks frm producing contentTelevision networks can not use content TV networks were involved in distribution therefore the rule was they can ONLY be involved in distribution the reason why this rule existed if you dont own things you have to gonegotiatethe idea is you keep the economy aliveMurdochFox Network fought to eliminate FynSynwanted US govt to change FinSyn rules says you have to let me produce my own content for Foxif you dont youre dampening my competitionFinSyn rule diesthey create Fox but this also opens the doors for other companies too Aftermath movie studios createbuy networksex Disney buys ABC WB creates its own cable networkTelecommunications Act 1996The end of the Rule of SevenRule of 71 company can own 7 TV networksDeregulation of TVradio ownershipOwnership cap increased to 35 of national mediaby 1996 they changed the rule so that any company can own up to 13 of any mediaBIG CHANGEAftermath 75 of TV networks owned by Big 633 of radio stations owned by conglomeratesExtension of ownership cap to 39 under Bush administrationWhy is this good for the economy Companies get a lot of freedom to do what they want to do make more moneyadd to the economyWhats the criticismproblem Lessless competition all of these companies are owned by certain parent companiesWhat are the incentives to consolidateWhy is mass media getting BIGGERIncentives to Get BiggerBetterSynerySynergywhen the whole can function more greatly than the sum of the partsEfficient product development Economies of scaleex Disney owning all the major sports networks this is much more efficient for creating content horizontal integrationCrosspromotional controlpayoff for being a conglomerate is that you can crosspromote your content you own lots of different media outletscompanies and you want to promote one type of content ex How should Disney crosspromote The Muppets 2advertising on ESPN running actual commercials on ABCall of their other owned networks have a Muppet have an interview on Good Morning America Disney doesnt have to ask for permission because they own all of those companiesThe Walt Disney CompanyCreate franchisesexploit as much synergy as possible among subsidiaries ex The Lion King as a movie on broadway merchandise etcNot all plans for synergy work Ex AOL DistributionTime Warner ProductionTime Warnerproduces a lot of content like Time Magazine AOLinternet Time WarnerAOL could possibly takeover the media landscape BUT it didnt work Time WarnerAOL had different company cultures they had very different ways of doing things AOL completely tanksTime Warner just wasted a lot of money on a company that diedthey lose 99 billion
More Less

Related notes for MC 2000

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.