Lecture Notes, 4/14/03:

Strategies of the New Media Giants

Reading: Croteau and Hoynes ch. 4

Trends in the past two decades:

1. Growth through mergers and buyouts

2. Integration:

a. Horizontal Integration

b. Vertical Integration

3. Globalization

4. Concentration of media ownership

Viacom as case study

Why?

1. Changing technology

2. Pro-business environment

Relaxation begins:

1. 1993: "fin-syn" and increased vertical integration

2. Telecomm Act of 1996:

TV Rules Then:

Can own 12 stations nationwide

Only one station per market

Reach: 25%

 

TV Rules Now:

No limit on ownership

Review (1999: multiple station ownership allowed)

Reach: 35%

Radio Rules Then:

Own 20 FM and 20 AM stations

No more than 2 AM & 2 FM O&O's

Share: 25%

Radio Rules Now:

Ownership limits by market size, but can be waived by FCC

 

3. 1999: further relaxation of restrictions on ownership

Viacom/CBS merger: 41% reach

4. 2003?

Political Influence of Media Corporations:

The Big Story That's Not Being Told Right Now

FCC proposed relaxation of standards of media ownership

Web page link to Bill Moyers' Now report