Media Systems and Communication Technology.

Chapter 3 Overview

Summary and Learning Objectives

The American media industry, the largest in the world, is run by private businesses with only minor government control. Having gotten its start in the 1640s, it was among the first industries in the American colonies. However, media business did not become big until the 1830s, when high levels of literacy and the development of the steam-powered printing press allowed for the mass production of newspapers, books, and magazines. The growth of the electronic media in the second half of the 20th century helped create a national media culture, as the same content became available simultaneously throughout the country.

For many years, six large media conglomerates dominated the American and much of the global media. They own the major television networks, broadcast stations, cable channels and providers, newspapers, magazines, record labels, movie studios, and Internet services. These companies tend to be vertically integrated--producing, promoting, and delivering content to the consuming audience. But there are a number of new players in the media business who are also significant. They provide cable television and Internet services, online search and content, and integrated media content and hardware. Among the biggest media companies operating in the United States are Time Warner, Disney, News Corporation, 21st Century Fox, Viacom/CBS, Bertelsmann, Comcast/NBCUniversal, Google, and Apple.

Recent years have seen both legacy and newer media companies struggle over what is the right size to be in order to be the most competitive they can be in the marketplace. This has resulted in a rapid series of sales, mergers, and transformations of these companies.

Widespread access to the Internet has brought about the rise of smaller-scale new media companies that specialize in providing a wide range of media content that appeals to relatively small numbers of consumers. When combined, these niche markets, known as the long tail of media, can rival the size of the markets for blockbuster media content.