ANTH 1001 Chapter : Conglomerates And Blurred Media Boundaries
Document Summary
90% of media across the world is owned by 6 companies: Conglomeration: new twist in vertical and horizontal integration: many media outlets share a parent, conglomeration leads to consolidation of ownership. How did this happen: deregulation, 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: telecommunications act 1996. The end of the rule of seven". Ownership cap increased to 35% of national media. Aftermath: 75% of tv networks owned by big six. 33% of radio stations owned by conglomerates. Extension of ownership cap to 39% under bush administration. Synergy: when the whole can function more greatly than the sum of the parts: efficient product development (economies of scale, cross-promotional control. Create franchises and exploit as much synergy as possible among subsidiaries. Example: aol + time warner = aol failed, and lost billion.
