This paper will briefly trace recent developments in the media industry, before examining the role of the state and neo-liberal ideology in shaping the global communication system. After analysing the effects of media concentration, special focus will be put on the concept of commodification in the media industry and the notion of cultural hegemony and dependency of media. Thereby, it will be argued that elitist corporate interests shape the news content in order to guarantee a profit friendly political environment.
Table of Contents
1. Media concentration
2. Neo-liberal ideology and the role of the state
3. Commodification
4. Cultural hegemony
5. Corporate public sphere
Research Objectives & Topics
This paper examines how corporate interests and neo-liberal ideologies shape global media content, arguing that media concentration and commodification lead to a news environment that favors profit-friendly, elitist perspectives over critical democratic discourse.
- The impact of global media concentration on market competition.
- The relationship between neo-liberal economic policy and state involvement in media regulation.
- The commodification of news and audiences within capitalist frameworks.
- The role of cultural hegemony in maintaining the socio-economic status quo.
- The shift from a democratic public sphere to a corporate-controlled communication system.
Excerpt from the Book
Media concentration
During the past decades, the global communication system has undergone a variety of dramatic changes, shifting power to commercial interests. Technological improvements in digital communications created an increasingly global market for corporations looking for investment (Schiller 1999). Thereby, predominantly western companies engaged themselves in “conglomeration and transnationalization” through corporate takeovers, mergers and acquisitions of unprecedented scale (Jin 2007, p. 185). These ongoing processes of vertical and horizontal integration fostered the emergence of huge media conglomerates (Jamison 1998; Schiller 2001). Vertical integration, the acquisition of related businesses in the process of profit generating (Gomery 1986), enables corporations to effectively produce, distribute and broadcast its products under one roof and, therefore, minimise transaction costs (Stigler 1964). In other words, a corporation owning production companies and distribution outlets, as well as TV stations and movie theatre chains, simultaneously provides itself with its own supply and demand.
Horizontal integration, on the other hand, aims at obtaining a greater share of the market by acquiring companies in the same field of business in order to maximise profit through price control (Gomery 1986). Hence, only a hand full of globally operating corporations remained, with the majority of them based in the US (Jin 2007, p. 191). Since “many of the largest media firms have some of the same major shareholders, own portions of one another or have interlocking boards of directors” (McChesney & Schiller 2003, p. 12), eventually, “the global media system is fundamentally noncompetitive in any meaningful economic sense of the term” (McChesney 1998, p. 5). Whereas “the ownership structure of the news industry purportedly aligns the news media’s coverage of the economy with the overall business interests of the corporate community” (Kollmeyer 2004, p. 435), the “oligopolistic control of much of the world communication market by a few giant corporations” renders it not only practically impossible for newcomers to penetrate the market (Jin 2007, p. 148), but, in consequence, enables these firms to “behave as if a monopoly were operating” (Gomery 1989, p. 50). Lacking any effective competition, the intertwined ownership structure of the media industry cultivates the shaping of media content according to underlying corporate interests.
Summary of Chapters
Media concentration: This chapter analyzes how vertical and horizontal integration have led to a global oligopoly, stifling competition and aligning news coverage with corporate interests.
Neo-liberal ideology and the role of the state: This section explores how governments facilitate a deregulated global media market, viewing it as essential for neo-liberal capitalist prosperity.
Commodification: This chapter discusses the transformation of media content and audiences into commodities designed to maximize advertising revenue and corporate profit.
Cultural hegemony: This part examines how media conglomerates use their influence to promote elite, pro-capitalist viewpoints, effectively marginalizing alternative perspectives.
Corporate public sphere: This concluding chapter argues that the modern media system functions as a corporate, rather than public, sphere, where compliant ideas are pushed to maintain the social and economic status quo.
Keywords
Media Concentration, Political Economy, Neo-liberalism, Commodification, Cultural Hegemony, Globalisation, Corporate Interests, Advertising, Mass Media, Public Sphere, Oligopoly, Vertical Integration, Horizontal Integration, Capitalist Economy, Media Conglomerates.
Frequently Asked Questions
What is the fundamental focus of this work?
The work investigates the political economy of the global media business, specifically examining how corporate and profit-driven interests dictate news content.
What are the primary thematic fields addressed?
Key themes include media ownership concentration, the influence of neo-liberal ideology, the role of advertising in commodifying content, and the maintenance of cultural hegemony.
What is the central research question?
The research seeks to understand how and why elitist corporate interests shape news content to ensure a political and economic environment conducive to profit.
Which scientific methodology is applied?
The author employs a political economy approach to analyze the social and power relations inherent in the production, distribution, and consumption of media resources.
What topics are covered in the main body?
The main body treats the processes of media integration, the role of states in deregulation, the commodification of audiences, and the ways in which media mirrors the interests of the elite.
Which keywords best characterize this publication?
Central terms include media concentration, political economy, commodification, cultural hegemony, and corporate public sphere.
How does media concentration affect market entry for new companies?
The oligopolistic structure creates high barriers to entry, making it virtually impossible for new, independent media entities to compete effectively against established conglomerates.
In what way does the author describe the shift to a "corporate public sphere"?
The author posits that the democratic ideal of a public sphere has been replaced by a system where elite-compliant ideas are promoted to safeguard the status quo of global capitalism.
- Quote paper
- MIR, MA Sebastian Plappert (Author), 2008, Political Economy of the global media business: Why corporate interests shape the news, Munich, GRIN Verlag, https://www.grin.com/document/153918
