Media Consolidation and Its Impact: The Big Five

Political Economy of Media and Consolidation

  • Definition of Political Economy of Media:

    • The study of social relations and power relations that constitute the production and consumption of media.

    • Concerned with how media production contributes to, reinforces, or undermines different political and social inequalities.

    • Focuses on understanding these concerns through the lens of production.

Media Consolidation in the US

  • The Reality of Media Ownership:

    • From a large number of controlling interests to a few dominant players.

    • Since the early 1980s1980s, the number of media companies controlling the bulk of US media has shrunk from approximately 5050 to just 55 mega-corporations.

    • This has created a landscape dominated by near-monopolies, just barely avoiding antitrust law enforcement.

  • The "Big Five" Super Corporations:

    • Comcast

    • Disney

    • National Amusements

    • News Corp

    • AT&T (which acquired Time Warner in 20182018 for $109\$109 billion, replacing Time Warner on the list).

  • Characteristics of the Big Five:

    • Some have intentionally bland names (e.g., National Amusements, News Corp) and lack public-facing operations to avoid drawing attention to their vast holdings.

    • Collectively, these five companies are worth over $400\$400 billion.

    • They control approximately 90%90\% of all US media, including news networks, Hollywood movie studios, and print publications.

    • Their reach extends to nearly 100%100\% of all US households.

    • The remaining 10%10\% of media is largely owned by slightly smaller (but still multi-billion dollar) corporations, such as Sinclair, known for its centralized propaganda broadcasts across local US news channels.

  • Examples of Holdings by the Big Five:

    • News Corp (Rupert Murdoch's empire): Fox (including Fox Sports, 20th Century Fox), FX, GQ, The Wall Street Journal, Sky News, Harper Collins Publishing, The New York Post, National Geographic, Zondervan, Market Watch, among others.

    • National Amusements: CBS and its branches, Paramount, Nickelodeon, MTV, BET, GameSpot, VH1, Comedy Central, The Smithsonian Channel, Spike, Showtime, Simon and Schuster, GameFAQs, CNET, and Viacom (a former major player).

    • AT&T (after acquiring Time Warner): CNN, HBO, Cartoon Network, Warner Brothers, DC, TBS, True TV, Cinemax, TNT, Adult Swim, part of Hulu, Turner Classic Movies, Time Magazine, Rocksteady Games, and Time Warner Cable.

    • Comcast: NBC, MSNBC, USA Network, SciFi, Fandango, Universal Pictures, Focus Features, Working Title Films, Rotten Tomatoes, Bravo, Oxygen, Big Idea, part of Hulu, MLB Network, NHL Network, and numerous internet ventures.

    • Disney: ABC, Pixar, DreamWorks, ESPN, Lifetime, The History Channel, Marvel, Lucasfilm, Hollywood Records, Touchstone Pictures, Vice, and a significant portion of the comic book industry through Marvel's acquisition.

    • Netflix is an exception, not outright owned by the Big Five, but owned in part by various large interests, including BlackRock (the world's largest shadow bank).

Monopoly, Oligopoly, and Antitrust Laws

  • Pure Monopoly Definition:

    • A single company having complete control over a market containing a good or service with no close substitutes.

    • None of the Big Five technically qualify as a pure monopoly because five large corporations share the US media market.

  • Oligopoly in Practice:

    • The US media landscape is characterized as an oligopoly, where complete control is spread across a handful of powerful groups.

    • Despite not being legal monopolies, these companies wield monopolistic power due to massive concentration of wealth and power.

    • There is significant interplay and deal-making among the Big Five, even to the extent of one holding stakes in properties owned by another, making them a