The Media and Global Economics Chapter 13 The Media and Global Economics

WHAT IS CULTURAL IMPERIALISM? the spread of US media and popular culture globally US styles and products dominating the global market US cultural values shaping cultures and identities in other nations

How is cultural imperialism an economic issue? How is cultural imperialism an ethical issue?

Media Structures in a Global Economy MONOPOLIES OLIGOPOLIES LIMITED COMPETITION

MONOPOLY When a single firm dominates production and distribution in a particular industry, either locally or nationally

OLIGOPOLY When a handful of companies dominate an industry, either locally or nationally

LIMITED COMPETITION A media market with many producers and sellers but only a few differentiable products This “monopolistic competition” effectively limits diversity of choices available to consumers

From Industrial Age to Information Age centralized mass production --> decentralized service economy cultivation of niche rather than mass markets emphasis on information distribution and retrieval

Globalization global cooperation and the breakdown of economic trade borders globalization of corporations (multinational, transnational)

CHARACTERISTICS OF OUR INFORMATION ECONOMY increased consolidation of media corporations: rise of mega corporations flexible markets -- an “elastic economy” -- that produces expanded product selection but increased potential for failure rise of specialized “niche” markets economic “synergy” at international levels

Why has US Media Culture become Global? media technologies are more portable satellite technologies enable global access without any movement of product moving US plants outside US borders allows recruitment of cheaper labor, especially in Third World nations American media products (like TV shows) can be sold more cheaply than local products

Regulation and Deregulation of the Media Industries based upon an interpretation of ANTITRUST laws enforced by the Federal Trade Commission and the Justice Department since 1980s, the spirit of DEREGULATION has guided U.S. legislation, especially in communications industry the rules are unevenly applied

MAJOR ANTITRUST LEGISLATION SHERMAN ANTITRUST ACT of 1890-- passed by Congress; outlawed monopoly practices that limited free trade CLAYTON ANTITRUST ACT of 1914: prohibited exclusive sales arrangements CELLER-KEFAUVER ACT of 1950: limited corporate mergers

Effects of Deregulation in the 1980s loosening of antitrust restrictions, allowing businesses to form monopolies and oligopolies in certain industries led to increased mergers, corporate diversification, and increased tendency toward oligopoly

The Disney Company Cartoons and Children’s Culture (1920-1950) Corporate Diversification (1950-1966) Media Consolidation (1984-present)

“In early debates [over the legitimacy of oligopolies in media] the political ideas of democracy became closely allied with the economic structures of capitalism. As one media historian has noted of the period, “by implicitly defining democracy in terms of equal access to consumer products, political and business leaders created the appearance of running a fair society in which everyone had equal access to power.”

How does the consolidation of media ownership affect you? Do more consumer choices mean that we hear from more voices and perspectives? What types of perspectives, sounds and images are NOT represented by the media oligopolies?