This essay was submitted on request by: Ashleigh-Ann Mowatt
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What, in your view, are the major implications of the global media oligopoly?
Media and communication in contemporary societies has become a multi faceted entity. It plays a vital role in the socialization and development of a people through diverse means of communication. The recent phenomenon of globalization has affected current media practices worldwide. Neo- liberalism which is a sub concept of globalization promotes the removal of barriers to trade and commerce. Although this concept seems primarily economic, it has influenced mergers amongst top media houses resulting in an oligopoly. Through a discussion of the global media oligopoly, the implications of this practice on current communication trends, Caribbean culture and democracy will be outlined. The Research and Education Association...et al, (1980) defines an oligopoly as “an industry dominated by a few very large firms and in which there is ‘mutual dependence recognized.” In this context therefore the global media oligopoly constitutes a few multinational corporations which dominate the global media market. This process of oligopolization of global media requires consolidation, convergence and off shore marketing coupled with the utilization of satellite and digital technology. An oligopoly can be either homogenous, meaning that they produce the same product, or differentiated, meaning they produce a wide array of products. In evaluating the global media oligopoly, it can be concurred majority of the top media mergers employ a differentiated approach to this practice. The implications of this economic practice are both positive and negatives. However the negative implications are long-lasting. Through a positive viewpoint, the global media oligopoly has made information easily accessible to national, regional and international media consumers. Hoynes (2001) agrees that the oligopolization of global media means that “there is more media available for most
What, in your view, are the major implications of the global media oligopoly?
consumers.” “More media,” in the context of this global phenomenon entails greater access to a wide array of television channels, radio stations and by means of the highly effective broadband internet, media consumers are exposed to a wider range of websites and international social media entities. Fundamentally, the oligopolization of global media foster education and international participation since Caribbean nationals are able to connect with and become more knowledge of their wider global community. Incidentally, the differentiated approach to the oligopolization of global media has allowed previously offline media companies to secure profits from the online market through increased advertising on the internet. Media convergence fosters expansion, profitability and development of offline media entities. A clear example of this is seen in the purchase of Time Warner by AOL in 2000. This secured greater profits for the two companies since the two media giants marketed the products of each other through both their online and offline channels; allowing for the expansion of their media markets. Disney Corporation, Robert McChesney remarks on the topic was that, “more than any media giant is the master at figuring out new synergistic ways to acquire, slice, dice and merchandise content.” (Warf, 2007) Oligopolization of global media fosters integration among media companies beyond national, regional and international borders providing an opportunity for business expansion from local to international ownership. The oligopolization of global media by top US giants has triggered convergence and collaboration among Caribbean media entities. An example of this is the Jamaica Gleaner and the radio station Power 106 becoming the Gleaner Power 106 and in Trinidad, the Trinidad Express and TV6. Caribbean media mogul, Ken Gordon was instrumental in the establishment of conglomerate media entities in the Caribbean since he was mindful of implications of external ownership and control of Caribbean media market. Gordon stated, “Foreign owners had no more
What, in your view, are the major implications of the global media oligopoly?
than an academic interest in press freedom, their concern was to make an attractive return on their investment.” (Thomas & Nain, 2004) The neo- liberal ideology of de- regulation allows the influx of foreign media content in the Caribbean which creates heavy market competition for local media content. Multinational corporations through their manipulation of satellite and digital technology stifle locally produced media content thereby limiting the profitability of small local media companies to the heavy reliance on imported media. This is reflected in a study conducted on three local media companies in Jamaica; TVJ, CVM TV and Love TV in 2007. The study revealed that 61% of the total airtime for all three national commercial stations was US based programmes. President of News Corporation remarks, “You need to have enough marketplace dominance so that people are forced to deal with you.” (McChesney, 2001) These global media “giants” dictate prices and control profits since they have far greater marketplace dominance than local media companies. Important to note, is the implication of this market competition on the quality of the content of media. In an effort to garner greater profit, more emphasis is placed on entertainment to increase viewership rather than the quality of the content presented to the global market. (Hoynes, 2001) Caribbean news items are becoming increasingly sensationalized. A greater emphasis is placed on sex, hype and trivialities rather than producing high and factual quality content. Cultural Imperialism is another major negative implication of the global media oligopoly. The global media is currently controlled by seven multinational corporations. These are Disney Corporation, AOL Time Warner, Sony, News Corporation, Viacom, Vivendi and Bertelsmann. On a collective basis these corporations control, “75% of US television audience and 90% of television news audience.”(Warf, 2007) Therefore, they are able to dictate global culture through their various media outlets. Scholars have point to the emergence of US dominated global
What, in your view, are the major implications of the global media oligopoly?
culture. This is true since the multinational corporations are primarily based in the United States. In the context of the Caribbean therefore, it can be seen where the local culture is being loss due to the heavy infiltration of American values, beliefs, choice of dress, language, music, etc. A critical example of this is in the Caribbean is the emergence of the US originated, techno beat in dancehall music. Cultural Imperialism through global media oligopoly is gradually resulting in the loss of Caribbean culture in local media content. Global Media Oligopoly also has serious political implications. This international control of the media compromises fundamental democratic principles. It believed that the media as a major democratic institution should represent the interest of the public. It should be free from biases and strive to achieve a fair and balance viewpoint. However, the global media controlled by few wealthy capitalist would undoubtedly undermine these democratic principles, representing their own selfish interests. This is reflected in the case of Rupert Murdoch, owner of one of the seven multinational organizations, News Corporation. Through its various media outlets such as the FOX News network, he garnered support for the election of George Bush in the 2000 US elections and rallied support for US invasion in Iraq in 2003. (Warf, 2007) An oligopoly of global media is damaging to the survival of democracy. Although there are positive consequences of global media oligopoly, the negative consequences outweigh them. This practice of media oligopoly has served to shape the ideology of the world. As seen in this paper, the prevailing international ideology has it base in US culture and undermines Caribbean culture. This economic practice disregards democratic principles on the grounds of market domination and greater profit acquisition.
What, in your view, are the major implications of the global media oligopoly?
References
Gordon, N. (2008). Globalization and Cultural Imperialism in Jamaica. International Journal of Communication. 3.307-331. Hoynes, W. (2001). Making sense of media mergers. Society. 38. 79-81. McChesney, R. (2001). Global media, neoliberalism and imperialism. Monthly Review. 52 (10). 165-178. Research and Education Association, Fogiel, M. Rycroft, R. (1980). The Economics problem solver. Library of Congress. Thomas, P. & Nain, Z. (2004). Who owns the media? Global trends and local resistance. Southbound Sdn. Bhd. Warf, B. ( 2007). Oligopolization of Global Media and Telecommunication and its Implications for Democracy. Ethics, Place and Environment. 10 (1). 89-105.