Curran and Seaton

Power and media industry theory

The media is controlled by a small number of companies, primarily driven by the logic of profit and power.

  • The idea is that media concentration generally limits or inhibits variety, creativity and quality.

  • The idea is that more socially diverse patterns of ownership help to create the conditions for more varied and adventurous media productions.


Media and Power – Curran and Seaton suggest that profit-driven motives overtake creativity in the world of commercial media. It is the business managers, not creatives who control creative input. Money wins – audience size and shares determine content.

Conetnt ends up same/similar

Curran and Seaton claim the industry is driven by two forces:

Creativity – the media creatives (writers, directors, actors etc) who aim to give us exciting aesthetically pleasing media products.

Business – the media business managers who are responsible for ensuring the profitable and commercial viability (will it make money?) of products.


Vertical Integration – Where a company can control the production, distribution and consumption of its products – leading to more money.

Example – A production company that owns a distributor or retailer or a magazine publisher that owns a printing company.


CASE STUDY

Black Panther was created and put into production by Marvel Studios.

It was then distributed by Walt Disney Studios – Exhibition – Disney released Black Panther on Walt Disney Studios Home Entertainment (DVD/Blu-rays) in the UK in June 2018. March 2020 Disney released the film on their own streaming service, Disney Plus

Advantages of Vertical Integration –

Pros:

  • Disney retains all profits from product distribution

  • Full control of when and where their products are broadcasted

  • Cross-media synergies – use subsidiary companies to promote their products and maximise profits.

  • Producing and distributing products internally saves money.

  • Can restrict access to competitors on their distribution channels.

  • Do not have to pay distributors to stream their products.


Horizontal integration – When a media company acquires companies of the same media type (at the same part of the supply chain).

Which media companies of the same type did Disney acquire? – Lucas Film (Star wars), Pixar – 3D animation – Toy Story, Fox – competitor

Advantages of Horizontal integration

  • Production costs minimised

  • Resources can be shared

  • Markets can be controlled

  • Rights to use characters – potential cross-overs between franchises

Shared resources: Marvel characters, industrial light and magic special effects, Disney personnel, Disney production studios

Other critics argue that multi-media conglomerate ownership of newspapers leads to…​

  • the “desire only for profit and power”​

    ​

    -the dumbing down of content to maximise audience ‘views’ or circulation figures i.e. ​

    sanitised, lightweight, sensationalised or generating hysteria to bring in big audiences and ABC1 demographics​

    ​

    -lack of creativity as a result ​(90% represent news) = same representations


  • Summary:

    • Product differentiation in news media markets occurs without collusion as firms compete in advertising and information markets.

    • News media are joint products, with dominance in the information market leading to dominance in advertising.

    • Developing a product for the information market is uncertain, making collusion unlikely.

    • Economic theory inadequately predicts news media consumer behavior due to consumer preferences for heterogeneous products.