Pros and Cons of Media Consolidation - Research Paper

Introduction

Media consolidation is a trend where a single company or corporation owns many media outlets in a particular market or area of distribution. For example, it is common for one company to own more than three TV stations, several radio stations, a local newspaper and a cable system in one market segment. The term "media consolidation" is used by media critics, policymakers, and other stakeholders in the mass media industries (Berger, 2017). Media consolidation can be viewed as a form of monopoly or oligopoly in a particular media industry. For example, the movie industry is dominated by famous studios which were established in the 20th century. The Americana music and television industry have been recently experienced a media consolidation after a merger between Sony Music Entertainment and the Bertelsmann AG`s to form Sony BMG. Disney also finalized its purchase of the 21st Century Fox on 20th March 2019. It also owns Marvel, Pixar, Star Wars, ABC Network, ESPN and radio. Such media consolidation has an implication on democracy since one company owns most of the influential voices in the country and they are in a position of exporting the voices around the world. On the other hand, if there were no consolidation, some of the voices would go silent due to inadequate operating funds.

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Media consolidation can raise quality dimensions of local programming. Media companies regularly utilize various media avenues, for example, TV, print, and the web to improve their contributions. The utilization of numerous configurations permits media organizations to offer broad extra data. A watcher can seek after a point on the web about which they saw a news report, for example, new stock offering, so TV programming does not have to invest broad energy covering it. This move to different arrangements does not finish with TV. Print media exploit the web also. Papers, for example, the NY Times and USA Today look after sites, as do significant magazines, for example, Time and Newsweek.The consolidation of media ownership in one region is often viewed as a problem of contemporary media. When media consolidation is concentrated in one area, several consequences occur including such as less diverse opinion for the general public and low voice availability in the media (Berger, 2017). There are also few opportunities for the minorities and thy lack a voicing in the media. Also, healthy and market-based competition is absent, and this causes low innovation and increased prices. The essay will discuss the advantages and disadvantages of media consolidation.

Disney Case Background

On February 2018, Disney Corporation announced its $71.3 billion mergers with the 20th Century Fox and the deal was finalized on March 20th. This merger is set to reshape the media landscape since it will make Disney a large entertainment hub. The organization will be in a position of bolstering its trove for different characters and movie plots. Schwartz (2019) states that Disney will be in a position of competing with Netflix and many other streaming companies in the United States when they launch the Disney + streaming service. Disney owns many other brands including Marvel, Pixar, Star Wars, FX networks, and National Geographic. Also, they have a 30% ownership of Hulu, and this gives them a significant controlling percentage.

The mergers are aimed at providing the opportunity of consolidating various holdings, uniting talented leaders, bringing different ideas in movie production, and combining multiple significant cable properties. Disney also has the desire of bringing a vast network of local sports channels for them to fold under Disney`s ESPN programming. The 20th Century Fox went on the deal with due to fear, opportunity, and pragmatism. Fox was in fear about the investment of Netflix, Amazon, and Apple on the new shows since they would present a high competition in the movie industry. They also saw the opportunity to cash out their assets at a very high peak. Disney saw a pragmatism in resolving the professional fates of various stakeholders who do not contribute to a significant role in the company. Currently, Fox has sold most of its entertainment assets, and it is a standalone company. It will retain its ownership of the broadcast network, operated affiliates, Fox News channel, Fox Business Network, and Fox Sports. Schwartz (2019) points out that the acquisition will present many negative consequences such as the loss of many jobs after the consolidation of Fox`s properties by Disney.

Advantages

Media consolidation alludes to a pattern in which a solitary organization or partnership claims various news sources in a given market region of dissemination or transmission. Basic Cause reports that one organization may own three TV stations, eight radio stations, a neighborhood paper and the link framework in a market. This pattern has met with impressive opposition, yet it provides points of interest just as entanglements.

One standpoint of media consolidation is the capacity to give increasingly differing contributions to the audience. Reports demonstrating the capacity to possess numerous TV slots, for instance, enable the proprietors to give programming to specialty advertises on the diverse stations. Basically, the relevant proprietors never again need to attempt to interest the most extensive gathering of people in a solitary media position. Or maybe, they can tailor programming to serve the requirements of various sections of the populace. This confinement of degree runs connected at the hip with another advantage: improved quality.

The consolidation of media presents the advantage of diverse offerings to the consumer. A research that was conducted in 2003 reported that the capability of owning many television stations allows the media outlet owners to program their services for the niche markets of various stations (Epplin, 2018). This implies that the owners of these companies do not need to appeal to a wide audience or viewers in one media format. Instead, the owners can align the programming services to meet the needs of different segments of the people who are viewing. For example, in the context of Disney corporation, the owner can easily tailor the programming services to fulfill the desires of different viewers. They have the capability of attracting Marvel, Fox, Pixar and Star Wars fans at simultaneous occasions.

Media consolidation also improves the quality levels of their programming services. The corporations employ many media formats ranging from television, radio, print, and the internet when offering their services to the general public. The utilization of many media formats enables them to provide broad and additional content (Berger, 2017). One viewer can explore a topic on the internet regarding what they saw on the news report. The television programming does not require a lot of time in covering one topic since the audience can always explore further from print or internet sources. Print services can also take advantage of the internet. The New York Times, Denver Post and the USA today are examples of newspapers which utilize the internet to capture a broad audience.

Media consolidation ensures survival since the small firms that compete with large corporations since they go under due to inadequate resources. This is because small media firms cannot afford to produce programming, hire talent, and promote the quality of the technical staff members and compete with large media corporations (Epplin, 2018). Besides, the small companies require high costs in buying cameras, microphones, servers, computers and other editing programs. Therefore, the small media companies can survive by merging with the large media corporations. For example, in the context of Disney`s merger with Fox, the latter will survive in the media industry without facing the threat of competition from Netflix, Amazon, and Apple.

Media consolidation presents the opportunity of an independent media which serves as an excellent alternative to the corporate media. This type of media ownership ensures investigative reporting which is rare in the mainstream news since its funding comes from the viewers and listeners instead of the advertisers (McChesney, 2018). The media owners also cover many diverse issues that are not shown by the corporate media. There have been many claims that the corporate media has some bias because the people make their final decisions and each person has a different opinion and agenda. Also, bias attracts support and prevents the sale of particular products. Media companies which are in consolidation take responsibility of accessing various perceptions, and they are at a better chance of getting accurate information and processing it using critical thinking skills (Hansen, 2018). This enables them to cover legitimate news which can be verified by the viewer or listener. They also get honest feedback which can be used to change the global dynamics of injustice, suffering, and degradation.

Media consolidation is an avenue for consumers. This means that what works for the consumer also works for the media. The aim of media outlets is to era profits, and this can be ensured by providing the listeners and viewers with what they want. When there is something popular, it is covered for a longer time than other irrelevant or unpopular things. A consolidated media understands that people are responsible for the things that appear in the media and they assume that quality media wins (Hansen, 2018). When the media is consolidated it also receives minimum control from the government since the people are allowed to make choices of what they want to view.

Consolidated media outlets face minimal competition from other outlets. This enables the media houses to gain high profits instead of pursuing other public interest (McChesney, 2018). Each media house is assured of a broad global audience and the focus shifts from offering services to making more money. They also have a good reputation, and they are more likely to charge more due to a lack of alternatives. The consumers pay for more to benefit from a wide audience after advertising.

Disadvantages of Media Consolidation

Media consolidation focuses more on advertisers instead of the viewers. Most of these organizations have a minimal interest in journalism, and they concentrate more on gaining profits and exploring other lucrative areas (McChesney, 2018). Most of the consolidated media outlets are blamed for presenting biased political views. They tend to support parties and candidates in exchange for certain financial benefits.

Small media corporations that compete with massive activities regularly experience the ill effects of an absence of resources. Small media activities regularly can't bear to deliver programming, contract the ability or the nature of specialized staff to contend with bigger media organizations. Cameras, receivers, servers, PCs and the vital altering programs have huge costs more effectively dealt with by a corporate element than an individual proprietor. For some little news sources, the combination with an enterprise implies survival.

Media consolidation presents the challenge of corporate media control. For example, in the US setting, the leading media companies which dominate the industry are Disney, News Corporation, Viacom, and Bertelsmann. The five outlets own more than 80% of the United States media in various platforms including radio, television. Newspaper, websites, books, and movie (Hiebert & Gibbons, 2018). They are in a very firm position of influencing what people hear or view. The problem with this manifestation is that it causes a conflict of interest and this adversely affects the quality of the covered content. For example, in 2018 General Electric company spent a large number...