Concentration of media ownership (also known as media consolidation or media convergence) is a process whereby progressively fewer individuals or organizations control increasing shares of the mass media.[1] Contemporary research demonstrates increasing levels of consolidation, with many media industries already highly concentrated and dominated by a very small number of firms.[2][3]
Globally, large media conglomerates include Viacom, CBS Corporation, Time Warner, News Corporation, Bertelsmann AG, Sony, Comcast, Vivendi, Televisa, The Walt Disney Company, Hearst Corporation, Organizaes Globo and Lagardre Group.[4][5][6]
As of 2012, The Walt Disney Company is the largest media conglomerate in the US, with News Corporation, Time Warner and Viacom ranking second, third and fourth respectively.[7]
In nations described as authoritarian by most international think-tanks and NGOs like Human Rights Watch (China, Cuba, Russia), media ownership is generally something very close to the complete state control over information in direct or indirect ways (see Gazprom Media).
Media mergers are a result of one media related company buying another company for control of their resources in order to increase revenues and viewership. As information and entertainment become a major part of our culture, media companies have been creating ways to become more efficient in reaching viewers and turning a profit. Successful media companies usually buy out other companies to make them more powerful, profitable, and able to reach a larger viewing audience. Media mergers have become more prevalent in recent years, which has people wondering about the negative effects that could be caused by media ownership becoming more concentrated. Such negative effects that could come into play are lack of competition and diversity as well as biased political views.[8]
An oligopoly is when a few firms dominate a market.[9] When the larger scale media companies buy out the more smaller-scaled or local companies they become more powerful within the market. As they continue to eliminate their business competition through buyouts or forcing them out (because they lack the resources or finances) the companies left dominate the media industry and create a media oligopoly.[10]
Net neutrality is also at stake when media mergers occur. Net neutrality involves a lack of restrictions on content on the internet, however, with big businesses supporting campaigns financially they tend to have influence over political issues, which can translate into their mediums. These big businesses that also have control over internet usage or the airwaves could possibly make the content available biased from their political stand point or they could restrict usage for conflicting political views, therefore eliminating Net Neutrality.[9]
Concentration of media ownership is very frequently seen as a problem of contemporary media and society.[4][5][6] When media ownership is concentrated in one or more of the ways mentioned above, a number of undesirable consequences follow, including the following:
It is important to elaborate upon the issue of media consolidation and its effect upon the diversity of information reaching a particular market. Critics of consolidation raise the issue of whether monopolistic or oligopolistic control of a local media market can be fully accountable and dependable in serving the public interest.
On the local end, reporters have often seen their stories refused or edited beyond recognition. An example would be the repeated refusal of networks to air "ads" from anti-war advocates to liberal groups like MoveOn.org, or religious groups like the United Church of Christ, regardless of factual basis. Journalists and their reports may be directly sponsored by parties who are the subject of their journalism leading to reports which actually favor the sponsor, have that appearance, or are simply a repetition of the sponsors opinion.[unreliable source?][11]
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