Media Ownership - Does it Matter?

1. What is horizontal and vertical integration in the media industry and can you provide an example? 
Vertical integration: Where an institution has shares or owns each part of the production and distribution process. It allows media organisations to make profit at every stage in the production chain. For example a TV studio might buy up a production company which produces some of its TV programmes.  

Horizontal integration: Where an organisation develops by buying up competitors in the same section of the market. It allows media corporation to reach a wider audience. For instance, one music publisher could buy out another smaller music publisher. 

Source: http://media.edusites.co.uk/article/vertical-horizontal-integration/ 

2. What does Melody (1978) believe happen to the 'media market'?
Melody believes that the 'media market' will be monopolised of ideas by the private entrepreneurs for private profit and economic efficiency. As a result, access to the marketplace of ideas is restricted to only a few people.
25 years ago when this statement was made, 37/1519 cities in the USA had 2 or more daily newspapers. By 2000, the number had decreased and the one newspaper became the national norm. In 1996, the amount of cities with 2 or more dailies declined to 1.3% of all American cities. Less owners have control over more newspapers and their circulation - most of the media have been absorbed by large conglomerates or chains.

3. What does Neuman (1991) believe happens to the media content? Why is this a problem for the audience?
Neuman believes that the media content is "remarkably uniform in content and world-view". So, the messages within the media is constrained due to the direction trying to meet its economic imperatives. This is a problem for the audience because they aren't able to access the full media articles due to there being a constraint on what is available to them.

4. What does Sterling think about the level of research?
Sterling thinks "surprisingly little research has been done - only marginally more than we could draw on two decades ago". He suggests that the research is "assumed", "anecdotal" and suggests results from "ownership changes".

5. What does the media produce according to Gomery (2000)?
According to Gomery the media reproduces a message or ideology that allows the audience to believe people in power and not challenge them. Essentially, this keeps people in their place by making out that it's their advantage and keeping them content as opposed by making them try to 'take their jobs'.

6. The media industry and corporate power form a powerful cartel. What does it do to local cultures (Meier)?
The powerful cartel encourages the spread of certain values (like individualism, egoism and shareholder value). The public sphere is displaced with commercial infotainment, reality shows and trivialised news programmes due to the strong incentives. Local cultures and communities are eroding and a conservative 'common sense' view of the world is strengthening.

7. How have media corporations influenced the law? What impact does this have on new businesses entering the market?
Media conglomerates have gained economic strength, which increased their position in society in order for them to become powerful institutions with a great political power. Large media giants have achieved success in writing media laws and regulations to favour the interests of their corporations rather than the interests of the general public (Bagdikian 2000).

8. What issue does convergence pose for media ownership?
Numerous cross-media ownership rules have been relaxed or disposed with a rise of laissez-faire ideology in European and US parliaments, governments and regulatory bodies.

9. What does FCC believe about programme diversity?
FCC (Federal Communications Commission) believes the programme diversity was neccessary to maximise public service. This means that the greater the number of independent broadcasters, the greater the chances for achieving the desired diversity. Rules were adopted that restrict common ownership of broadcast stations and broadcast stations in combination with other media forms.