Media Ownership Notes

Media Ownership

Historical Approach

The study of media ownership involves examining patterns of power, influence, and concentration over time.
It raises questions about control and its impact on democracy, which have been a concern for a long time.

Paradox of Democracy

The turn of the 20th century in Western capitalist societies saw two significant developments:
- Widening participation in the political process through the extension of the right to vote.
- Increasing concentration of private ownership in major communication mediums, like the press.

Concerns from Commentators

Contemporary commentators viewed the concentration of media ownership as problematic.
Delos Wilcox (1900) stated that newspapers should be public institutions distributing working information and not be controlled by individuals solely for profit.

C20th Press Barons in the UK

Alfred Harmsworth (Lord Northcliffe) (1865-1922):
- Owned Daily Mail and Daily Mirror.
William Maxwell Aitken (Lord Beaverbrook) (1879-1964):
- A Canadian/UK press magnate.
- Publisher of London Evening Standard and Daily Express.

C20th Press Barons in the USA

Joseph Pulitzer (1847-1911):
- Owned New York World.
- Introduced "yellow journalism."
William Randolph Hearst (1863-1951):
- Owned New York Morning Journal.

Citizen Kane

Hearst was the inspiration for the character of Charles Foster Kane in Orson Welles' Citizen Kane (1941).
Kane's character reflects the political abuse of owner power, using his media influence to impact policy decisions even during an unsuccessful run for political office.

Key Tension

There's a tension between:
- Corporate interests: expansion, profit maximization, and political influence.
- The public interest: impartial information, diversity of expression and views, and open debate on key issues.

Power Without Responsibility

Beaverbrook and Rothermere created the United Empire Party against PM Stanley Baldwin over trade policy.
Baldwin criticized their pursuit of power without responsibility, comparing it to "the prerogative of the harlot throughout the ages" (1931).

Cecil King and the Mirror

Cecil (Harmsworth) King was the nephew of Lord Northcliffe.
His supportive relationship with PM Harold Wilson deteriorated during an economic crisis.
In May 1968, he published a front-page article titled 'Enough is Enough,' directly challenging Wilson's government.

Ownership of UK Newspapers c.1925

Sir Edward Hulton: owned 3 Sundays, 4 Dailies.
Pearson Group: owned 9 Dailies.
Alfred Harmsworth, Lord Northcliffe: Owned 10 Dailies, including Daily Mail, which was the first ‘tabloid’ in 1896.
William Berry (Allied Newspapers): owned 4 Dailies and Sundays.
Max Aitken, Lord Beaverbrook: owned 1 Daily, 1 Sunday.

The Situation 2025

Global multi-media conglomerates operate across all major media sectors and national borders.
There is a contradiction between the need for open communication for the common good and the economic reality of private media ownership.

Media Concentration in the U.K.

Three companies dominate 90% of the national newspaper market (up from 83% in 2019):
- DMG Media: publisher of Daily Mail, Sunday Mail, Metro, and "i".
- News UK: Sun, Times, and Sunday equivalents.
- Reach Plc: Mirror, Express and Star titles, and Sunday People.
Source: Media Reform Coalition UK media in 2023

Rupert Murdoch Profile

Originally owned a newspaper chain in Australia.
Expanded into the UK press market by acquiring The Sun and The Times.
Expanded into the US press market by acquiring the New York Post and Wall Street Journal.
Launched Sky satellite service in the UK and acquired a satellite system in Asia.
Acquired Twentieth Century Fox film studios.
Launched Fox TV as fourth US TV network.
Acquired Harper Collins & other book publishing companies.
Expanded into digital information services, including financial data, real estate, and education.
Retired in 2023.

News International

Originally started as a newspaper chain in Australia.
Expanded into the UK press market - buying the Sun, and Times.
Expanded into the US press market with the New York Post and the Wall Street Journal.
Launched Sky satellite service in the UK and acquired a satellite system in Asia.
Acquired the Twentieth Century Fox film studios.
Launched Fox TV as a fourth TV network in the US.
Acquired Harper Collins and other major book publishing companies.
Expanded into digital information services – in financial data, real estate and education.

Media Ownership and Political Controversy

Strong support for Tory governments; friend of Margaret Thatcher; supports Tory PM John Major in 92 GE.
1997 switches allegiance to Labour; before 2010 switched to Conservatives again; support for Johnson.
Political standpoints: anti-EU, climate crisis denier, anti-immigration, anti-BBC, nationalism/patriotism, supports US ‘war on terror’ & Iraq war.

Political Implications

"Without his newspaper he is just an ordinary millionaire. With it he can knock on the door of Number Ten any day he pleases". (FT comment on Rupert Murdoch).
Murdoch and Trump spoke most days on phone according to Guardian newspaper

Rupert Murdoch's Hacking Scandal

Rupert Murdoch was central to the 2010s hacking scandal.
British MPs stated that Rupert Murdoch "is not a fit person to exercise the stewardship of a major international company".

Press Ownership Scandals

Robert Maxwell looted his own Mirror pension funds (see House of Maxwell in 3 parts).
Conrad Black was convicted of defrauding his company, owners of Telegraph (pardoned by Trump).

Power of Newspapers

Past and present proprietors from clockwise Barclay Brothers & family (Telegraph); Rupert Murdoch (Sun/Times); Lord Rothermere (Mail); ex-KGB spy Alexander Lebedev (Independent, Evening Standard); his son Evgeny Lebedev given a peerage in 2020 by Boris Johnson.

Buying Big Media Brands

Billionaires have been spending $$$billions in recent years to buy big media brands.
They want global and political influence - buying extra level of power, membership of the elite/'respectable voice'.

Does Owner Power Matter?

The media landscape is very different from the era of press barons.
Marxist perspective:
- Class control of the media performs an ideological function.
- Tradition of media analysis has focused on the ideological character of news media.

Pluralist Perspective

Power is diffused, not concentrated.
Two main arguments:
- Audiences: we get the media we deserve; success in the marketplace depends not on the abuse of corporate power but on satisfying popular demand.
- Media professionals: what gets to be 'news' has to do with practices & professional ideologies of journalists (owners unlikely to interfere if the enterprise makes £££s).

Pluralists & Ownership Power

Power is not simply zero-sum (i.e., 'A' has power, but 'B' does not).
It's a variable sum: 'A' exercises power, and so does 'B,' for example:
- Managers
- Editors and journalists
- Regulation
- Consumer choice

Arguments Against Pluralists

Ownership is highly concentrated, making media plurality questionable.
Owners continue to exercise overall control.
Managers remain employees and can be fired and replaced.

Media Companies and Ownership Power

Companies compete, but they also act together to ensure the operating environment is hospitable to shared aims.
e.g., lobbying for (no) changes in regulation.
Build a sense of mutual interest.

Cross-cutting Links & Connections

Interlinks: shareholdings/directorships & leveraging influence across investments.
Personal ties - kinship and marriage; 'friendships' (BBC Newsnight 24 Jan 2023 reports Murdoch met Johnson 6 times during his premiership: 4 times for social events.
Shared social & educational background/career - common membership of exclusive clubs.

Networks

*Interlinks: shareholdings/directorships & leveraging influence across investments
*Personal ties - kinship and marriage; ‘friendships’ (BBC Newsnight 24 Jan 2023 reports Murdoch met Johnson 6 times during his premiership: 4 times for social events
*Shared social & educational background/career - common membership of exclusive clubs

Key Links

Political - trade business advantages for favorable coverage and endorsement e.g. ministerial meetings.
Police - as news sources/concealing corporate crimes e.g. phone hacking.
Family and Friends e.g. Rebecca Brooks & Elizabeth Murdoch (daughter).