Lecture 23Lecture 23

Democracy & the MediaDemocracy & the MediaNovember 24, 2014November 24, 2014

I.I. The problem The problem

• Democracy requires well-informed citizens. Democracy requires well-informed citizens.

• Can a media system dominated by large profit-driven corporations provide sufficient good quality information for citizens of a democracy?

I.I. The problem The problem

• Democracy requires well-informed citizens. Democracy requires well-informed citizens.

• Can a media system dominated by large Can a media system dominated by large profit-driven corporations provide sufficient profit-driven corporations provide sufficient good quality information for citizens of a good quality information for citizens of a democracy?democracy?

II. Markets and the media II. Markets and the media

II. MARKETS & THE MEDIA II. MARKETS & THE MEDIA

1. The Standard View1. The Standard View

The free press = the The free press = the free market free market press = free from press = free from government regulation = the “free marketplace government regulation = the “free marketplace of ideas”: only the best ideas (just like products) of ideas”: only the best ideas (just like products) will survive the competition of the market.will survive the competition of the market.

Critical assumption: the only threat to a free press is government control, not private wealthy elites.

II. MARKETS & THE MEDIA II. MARKETS & THE MEDIA

1. The Standard View1. The Standard View

The free press = the The free press = the free market free market press = free from press = free from government regulation = the “free marketplace government regulation = the “free marketplace of ideas”: only the best ideas (just like products) of ideas”: only the best ideas (just like products) will survive the competition of the market.will survive the competition of the market.

Critical assumption: Critical assumption: the only threat to a free press the only threat to a free press is government control, not private wealthy is government control, not private wealthy eliteselites..

II. MARKETS & THE MEDIA II. MARKETS & THE MEDIA

2. Four Problems with the Standard View2. Four Problems with the Standard View

Problem #1. Private corporate control of media Problem #1. Private corporate control of media contentcontent

Problem #2. From competition to Oligopoly

Problem #3. Advertising and profit maximization

Problem #4. Cost-cutting vs quality as basis for competition

II. MARKETS & THE MEDIA II. MARKETS & THE MEDIA

2. Four Problems with the Standard View2. Four Problems with the Standard View

Problem #1. Private corporate control of media Problem #1. Private corporate control of media contentcontent

Problem #2. From competition to OligopolyProblem #2. From competition to Oligopoly

Problem #3. Advertising and profit maximization

Problem #4. Cost-cutting vs quality as basis for competition

II. MARKETS & THE MEDIA II. MARKETS & THE MEDIA

Concentration of Media OwnershipConcentration of Media Ownership

0

5

10

15

20

25

30

35

40

45

50

early 1980s early 1990s today

Number of corporations that dominate the media industry

II. MARKETS & THE MEDIA II. MARKETS & THE MEDIA

2. Four Problems with the Standard View2. Four Problems with the Standard View

Problem #1. Private corporate control of media Problem #1. Private corporate control of media contentcontent

Problem #2. From competition to OligopolyProblem #2. From competition to Oligopoly

Problem #3. Advertising and profit maximizationProblem #3. Advertising and profit maximization

Problem #4. Cost-cutting vs quality as basis for competition

II. MARKETS & THE MEDIA II. MARKETS & THE MEDIA

2. Four Problems with the Standard View2. Four Problems with the Standard View

Problem #1. Private corporate control of media Problem #1. Private corporate control of media contentcontent

Problem #2. From competition to OligopolyProblem #2. From competition to Oligopoly

Problem #3. Advertising and profit maximizationProblem #3. Advertising and profit maximization

Problem #4. Cost-cutting vs quality as basis for competitionProblem #4. Cost-cutting vs quality as basis for competition

II. MARKETS & THE MEDIA II. MARKETS & THE MEDIA

3. Deregulation: the case of radio3. Deregulation: the case of radio

III. Alternatives: III. Alternatives: revitalizing a democratic free pressrevitalizing a democratic free press

III. ALTERNATIVES III. ALTERNATIVES

1.1. A Fundamental IdeaA Fundamental Idea

A vibrant, high quality free press in the public A vibrant, high quality free press in the public interest is a interest is a public goodpublic good. Capitalist markets . Capitalist markets generally do a poor job in providing public generally do a poor job in providing public goods; public goods need some kind of goods; public goods need some kind of systematic public support.systematic public support.

III. ALTERNATIVES III. ALTERNATIVES

2. Three kinds of broadcast media2. Three kinds of broadcast media

1.1. CommercialCommercial

2.2. State ownedState owned

3.3. Nonprofit/community mediaNonprofit/community media

III. ALTERNATIVES III. ALTERNATIVES

3. Toward a Democratic Media System3. Toward a Democratic Media SystemWhat would it take to create a vibrant, What would it take to create a vibrant, democracy-enhancing media system in the democracy-enhancing media system in the United States? United States?

Four key elements would include:

1. Prohibit Media empires and conglomerates

2. The public, noncommercial, nonprofit media sector should be the dominant sector in broadcasting

3. Encourage diverse forms of ownership: employee cooperatives, community stations, university stations, non-profit corporations.

4. Provide public subsidies but without state control.

III. ALTERNATIVES III. ALTERNATIVES

3. Toward a Democratic Media System3. Toward a Democratic Media SystemWhat would it take to create a vibrant, What would it take to create a vibrant, democracy-enhancing media system in the democracy-enhancing media system in the United States? United States?

Four key elements would include:Four key elements would include:

1.1. Prohibit Media empires and conglomeratesProhibit Media empires and conglomerates

2. The public, noncommercial, nonprofit media sector should be the dominant sector in broadcasting

3. Encourage diverse forms of ownership: employee cooperatives, community stations, university stations, non-profit corporations.

4. Provide public subsidies but without state control.

III. ALTERNATIVES III. ALTERNATIVES

3. Toward a Democratic Media System3. Toward a Democratic Media SystemWhat would it take to create a vibrant, What would it take to create a vibrant, democracy-enhancing media system in the democracy-enhancing media system in the United States? United States?

Four key elements would include:Four key elements would include:

1.1. Prohibit Media empires and conglomeratesProhibit Media empires and conglomerates

2.2. The public, noncommercial, nonprofit media sector The public, noncommercial, nonprofit media sector should be the dominant sector in broadcastingshould be the dominant sector in broadcasting

3. Encourage diverse forms of ownership: employee cooperatives, community stations, university stations, non-profit corporations.

4. Provide public subsidies but without state control.

III. ALTERNATIVES III. ALTERNATIVES

3. Toward a Democratic Media System3. Toward a Democratic Media SystemWhat would it take to create a vibrant, What would it take to create a vibrant, democracy-enhancing media system in the democracy-enhancing media system in the United States? United States?

Four key elements would include:Four key elements would include:

1.1. Prohibit Media empires and conglomeratesProhibit Media empires and conglomerates

2.2. The public, noncommercial, nonprofit media sector The public, noncommercial, nonprofit media sector should be the dominant sector in broadcastingshould be the dominant sector in broadcasting

3.3. Encourage diverse forms of ownership: employee Encourage diverse forms of ownership: employee cooperatives, community stations, university stations, cooperatives, community stations, university stations, non-profit corporations. non-profit corporations.

4. Provide public subsidies but without state control.

III. ALTERNATIVES III. ALTERNATIVES

3. Toward a Democratic Media System3. Toward a Democratic Media SystemWhat would it take to create a vibrant, What would it take to create a vibrant, democracy-enhancing media system in the democracy-enhancing media system in the United States? United States?

Four key elements would include:Four key elements would include:

1.1. Prohibit Media empires and conglomeratesProhibit Media empires and conglomerates

2.2. The public, noncommercial, nonprofit media sector The public, noncommercial, nonprofit media sector should be the dominant sector in broadcastingshould be the dominant sector in broadcasting

3.3. Encourage diverse forms of ownership: employee Encourage diverse forms of ownership: employee cooperatives, community stations, university stations, cooperatives, community stations, university stations, non-profit corporations. non-profit corporations.

4.4. Provide public subsidies but without state control.Provide public subsidies but without state control.

4. Two ways of providing public subsidies 4. Two ways of providing public subsidies of information media as a public goodof information media as a public good

•Return airwaves to public control and treat as a Return airwaves to public control and treat as a public resource. public resource.

•Targeted Tax Credit (not tax deduction) for nonprofit media support

III. ALTERNATIVES III. ALTERNATIVES

4. Two ways of providing public subsidies 4. Two ways of providing public subsidies of information media as a public goodof information media as a public good

•Return airwaves to public control and treat as a Return airwaves to public control and treat as a public resource. public resource.

•Targeted Tax Credit (not tax deduction) for Targeted Tax Credit (not tax deduction) for nonprofit media supportnonprofit media support

III. ALTERNATIVES III. ALTERNATIVES