Write a persuasive essay about explaining reasons why you support Facebook or Apple or neither company by considering following conditions.

Profit Maximization Goal: You can explain about the four strategies of big media corporations.

◦ Synergy ◦ The Logic of Safety ◦ Planned Obsolescence ◦ Celebrity and Spectacle

Contents: ◦ Pop Quiz: Go to the Blackboard and click the folder of “Pop Quizzes” under the

“Readings” (10 min) ◦ Lecture about the profit maximization strategies of media corporations (40 min) ◦ Group & Class discussion about the consequences of the media system (25 min)

Recap: Political Economy Analysis In understanding media, this approach pays attention to the industrialized system of production & distribution as the foundation that has an impact on the features of media contents based on Marxist theory.

Marxist Theory: a social theory that explain societies based on the movement of capital (money making more money) as the source of social change and power.

Recap: Four Patterns of Media Ownership 1) Concentration:

The phenomenon in which the media are owned & controlled by a small group of

powerful companies. 2) Conglomeration:

The hierarchical structure in which a parent company owns and controls

a host of subsidiary companies.

3) Integration: The pattern where the subsidiary companies or branches within a corporation are strategically interrelated.

4) Multinationalism: The phenomenon where a media corporation is presented in multiple countries,

allowing for the production and distribution of media products on a global scale.

1st Strategy of Profit Maximization: Synergy

◦ Refers to the involvement of multiple subsidiary companies in the cross- development, production, and distribution of a media brand for the purpose of exploiting it for all the profits possible.

◦ Synergy is made possible by horizontal integration. i.e., Summer blockbusters are at the heart of cross-promotional efforts.

◦ Synergy also happens between media industry and non-media industry like food. i.e., Mega-budget blockbuster gets made only when it can appeal to a wide audience,

and can be marketed to children through toy lines, and the fast-food industry.

McDonald's Global 'Shrek' Movie Promotion (2007) https://adage.com/article/news/mcdonald-s-unveils-global-shrek-movie-promotion/116573/

2nd Strategy of Profit Maximization: Logic of Safety ◦ Financial risk avoidance is primary principle. à Exploiting proven formulas (i.e., “Sex sells.” “Violence sells.” etc.), demanding of a

guarantee of success à Reluctant to produce highly original, innovative, or creative content. ◦ Sequels, Remakes, & Spin offs In Movie Industry: Sequel of The Hangover (2009): cost ($35 million), gross profit ($467)

à The Hangover Part II (2011) à The Hangover Part III (2013) https://www.the-numbers.com/box-office-records/domestic/all-movies/cumulative/released-in-2020

In music industry: Remakes or “Covers”

In TV industry, Spin-offs focus on a popular or even secondary character from the original.

3rd Strategy of Profit Maximization: Planned Obsolescence

◦ A business strategy or practice in which the obsolescence (the process of becoming obsolete – that is, unfashionable or no longer usable) of a product is planned and built into it from its conception.

à To have consumers feel a need to purchase new products and services and consume media continuously

à Especially when the content endlessly being churned out is formulaic rather

than creative.

(1) Technological Obsolescence ◦ It occurs when a development in technology causes the previous generation of that

technology to become obsolete.

Cassette Tapes < CD (Compact Disc) < Digital Device

Cell Phone

New Old New

Old New Old New

Old New Old New

Old New Old New

Old New Old New

Old New

SE 7 & 7 plus 2016

8 8 plus X 2017

XS XS Mas &XR 2018

11 11 Pro 11 Max 2019

12 12 Pro 2020

…

Example of the Video Game Industry

◦ New game consoles released every couple of years are specifically designed to prevent backwards compatibility.

◦ Preventing backwards compatibility means that the newer systems will NOT play older games.

Q: Any experience of frustration in relation to No compatibility in a video game?

(2) Psychological Obsolescence ◦ A business strategy or practice which creates a “Newness” to make consumer feel a constant

need to re-consume.

◦ Structure to pump a constant wave of ‘newness’ e.g., Up-to-the minute news on 24-hour cable news network

Billboard chart in music

Continuous birth of a ‘new star’ from Audition-based TV program

such as American Idol and The Voice etc.

Q: How do you feel about social media which are also run 24-hour?

: Do you feel urge to check out ‘new updates’ of your people in social media?

Or any pressure to provide ‘what’s new’ about yourself ?

4th Strategy of Profit Maximization: Celebrity and Spectacle

1. Discuss about what celebrity and spectacle are based on the textbook (pp. 42-43) in a group.

2. Find one example about how celebrity or spectacle is related to a profit maximization practice of the media industry.

Q: What would be the consequences of the ownership patterns and profit maximization strategies of media?

1) Cost for promotion

2) Entry of a small or new media company

3) Journalism

4) Voice or influence of different individuals on media

Q: What would be the consequences of the ownership patterns and profit maximization strategies of media?

1) An increase in media cross-promotion and a decrease in media products that are not suitable for cross-promotion.

2) A difficult environment in which a small or new media company competes with mega-scale media corporations like Big 6.

3) “The Holliwoodization/Tabloidization of the news,” weakened role of journalism due to its incorporation of sensationalism (i.e., focus on crime reporting, celebrity gossips etc.)

4) Media can be easily swayed by few super-rich owners as their political asset (i.e., Silvio Berlusconi, a media magnate and Italian prime minister elected three times, Michael Bloomberg, New York City mayor in 2001)

1) How well do media industries represent Americans or American life/culture? 2) Any implication in terms of intercultural communication

(e.g., stereotypes about Americans etc.)?

What about the environmental impact of such profit maximization strategies of big media corporations?

Question:

Is there any alternative or emerging new possibility

against the profit maximization strategies of

big media corporations

both as an audience member and

a small-scale media producers?