MC 2000 : Test 2
Document Summary
Conglomerates and blurred media boundaries 9/18/2012 4:01:00 pm. 90% of all of the media we consume is owned and controlled by six companies: general electric, disney, warner bros, cbs, news- corp, viacom. Basics of mass media economics: conglomeration: new twist on vertical and horizontal integration, many media outlets share a parent company, conglomeration leads to consolidation of ownership. Six companies own 90% of the media across the world. How did this happen: deregulation, the laws that used to regulated media companies were undone. Death of fin-syn rules 1970-1995: fin-syn prevented tv networks from producing content, murdoch & fox network fought to eliminate fin-syn, aftermath: movie studios create/buy networks. Incentives to get bigger and better: synergy: when the whole can function more greatly than the sum of the parts, efficient product development (economies of scale, cross promotional control. How should disney cross-promote: the walt disney company, create franchises and exploit as much synergy as possible among subsidiaries.
