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Chapter 9 Media ownership

Media Economics

Five categories of resources - Time: investment of time to create media content - Labour: number of people and the need for specialized skills - Capital: investment with the expectation of returns - Technology: equipment and the specific software applications required by media organizations - Material Resources: the need for material resources that links media economy to other

industries.

Two aspects to economic markets: -The good service offered -The boundaries within with this offer takes place

Media markets serve 2 markets at the media market - Audience - Advertising

- Even free markets are controlled to some degree by the government - Government at all levels participate in economy

Private corporate ownership - Free markets self regulate through rates of supply and demand - Government also intervene in economic process.

Economism - Cultural production as a commercial enterprise

Market - Economics costs and benefits that are not accounted for by the immediate transaction

between buyer and seller - Value if cultural works to society

Limitations of market economies - inability to recognize longevity of cultural products - failure to support infant industries - Failure to recognize the full of benefits of cultural production, outside of immediate market

value.

The political economy - Karl Marx is considered to be a major influence on this tradition - it question how and why decisions concerning economics and politics are discussed and

applied in society. - Harold Innis is regarded as one of pioneers in the political economy of communication - His work focussed on the historical relationship between power, political organizations and

communication technology. - He was talking about Power relations and Economic and political power.

Vertical integration: when a media organization own/operate businesses across various industries. (Disney: music, video..) Horizontal integration: is the domination of a market at one stage of the production process (when company monopolizes resources at that stage)

Organizing structures (chapter 12) All Canadian media industries are shaped in some way by the government

Newspaper - considered to be relatively untouchable because it closely associated with the historical struggle for freedom of the press

Radio - Public radio is commercial free, making public broadcasters dependent on government

funding. - all Canadian radio stations are regulated by the CRTC, restricted by licensing conditions and

Canadian-content quotas.

Public Ownership

Devoted to providing communication as some kind of public service based upon public goals - to enable citizenship - to foster a sense of community on regional and national scales - to promote regional and national cultures

Communication as a public service is inclusive, addressing audiences as citizens rather than consumers

Private ownership - commercial corporations are organized for the purpose of earning returns for their owners - private media companies have considerable latitude in changing course to maximize their

economic returns

Changing ownership - the linking or horizontal integration of a number id companies in the same business, occupying different markets

Vertical integration

Implication of private media ownership Two special benefits to private enterprise: 1. Stimulate the provision of affordable goods and services for which consumers have

expressed a need or desire through their purchasing decisions 2. Consumers are able to receive content either free or at minimal cost because advertising

subsidizes the media.

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