Corporations, Externalities & Media Influence

Corporations as Legal Entities

• Corporations are established through legal frameworks.
• Aim to generate profit for shareholders
• Corporations may possess similar rights to individuals, including free speech, which affects public discourse on social media platforms.

Externalities

• Business practices can lead to unintended negative outcomes
• This includes factory farming, pollution, and chemical misuse.
• Companies may prioritize cost-benefit analyses over regulatory compliance, assessing potential penalties.

Influence of Corporate Ownership

• Corporations, for example, Facebook & TikTok can shape public conversations.
• There is an ongoing discussion if media should fact-check, or if it is censorship
• Media manipulation may occur for economic or ideological control, potentially fostering hate speech and misinformation.

Media and Misinformation

• Media organizations may endorse ideologies for financial advantages.
• Misinformation spreads through platforms like X and Facebook
• This primarily affects political and public health discussions, including those about vaccines.
• Media platform owners such as Elon Musk and Mark Zuckerberg influence public discourse.

Privatization and Market Philosophy

• Neoliberalism prioritizes privatization, deregulation, and market-based solutions.
• Ethical concerns surround privatization, particularly unequal access to services in low-income communities.
• The market's capacity to fulfill public needs is questioned.

Corporations and Moral Responsibility

• The moral status of corporations is debated.
• It is discussed whether to consider a coporation a moral entity, or be made up of moral individuals
• Corporations are sometimes viewed as "psychopathic" for prioritizing profit over social and environmental concerns.
• Minimal repercussions for corporate misdeeds and scandals, such as those involving Exxon Valdez and Enron.

Cultural and Consciousness Industries

• Political economy distinguishes between the profit-driven culture industry and the ideological consciousness industry.
• Media reinforces or challenges social hierarchies.
• Media conglomerates influence content and global impact through transnational corporations producing action movies.

Social and Environmental Justice

• The influence of transnational corporations (e.g., action movies) impacts society.
• Corporate practices can raise ethical concerns related to environmental and social harm.
• Corporate negligence and exploitation are highlighted through case studies of Shell, Monsanto, and Nike,.
• It's important to ensure corporations are held accountable for environmental damage and human rights abuses.

Political Economy and Media

• Political economy analyzes how media systems reinforce or challenge class structures.
• Media behavior and content are shaped by ownership, advertising, and government policies.

Media Conglomerates

• Media conglomerates' cultural output mirrors their owners' interests, which may conflict with ethical or public interests.

Themes

• There is tension between profit motives and social responsibilities in media.
• How media ownership influences what content is emphasized or suppressed is a theme.
• Corporations play a role in shaping political and social discourse

Barriers to Entry in Markets

• New competitors face difficulties entering markets dominated by a few companies.
• Monopolies and oligopolies lead to less diversity, higher prices, and wealth concentration.

Monopolies and their Impact

• Monopolies create problems of product diversity, higher prices, increased wealth and power concentration
• Monopolies tend to increase costs and reduce consumer options.

Cultural Industry and Capitalism

• Mass-produced culture replaced traditional culture after industrialization and urbanization.
• Mass media became a tool for profit, often reducing content diversity.

Frankfurt School – Horkheimer and Adorno (1930s)

• Mass-produced culture lacks diversity and prioritizes profit.
• Mass culture is treated as a commodity under capitalism, made for money rather than genuine audience needs.
• Imitation is preferred for its easier profits from proven formats like sequels.

Reality TV and Commodification

• Reality TV emerged after the writer's strike due to lower production costs.
• "Survivor" was a successful example, leading to more similar shows.

Monetary Focus in Media

• Media prioritizes profitable content over that which challenges social norms.
• Many movies and TV shows aim to entertain rather than provoke or inspire.

Subversive Media Examples (Barbie, Hunger Games, etc.)

• Some films seem rebellious but are created based on profit motivations.
• "Rebellious" media can be commercialized via merchandise.
• Focusing on profit reduces true subversion.

Streamlining Media in the Digital Age

• Streaming services follow cable TV patterns, limiting creativity.
• Algorithms create repetitive content.

Neoliberalism and Media Ownership

• Privatization leads to concentrated media ownership, limiting competition and diversity.

Media Conglomerates in Industries

• Conglomerates like Disney dominate sectors like movies and music, promoting their products across various areas.

Political Economy of Media

• Political economy explores the relationship between media resources, communications, and power.
• Focus on how politics, economics, and media are interconnected.
• The significance of social change and the historical context are acknowledged.
• Understanding connections between media and education is needed.
• Critique of neoliberalism.
• Praxis turns media theory into action for social change.

Globalization and Cultural Imperialism

• Dominant media flows are often one-way, (e.g., U.S. culture spreading globally).
• "Counter-flows", like South Korean media, also impact markets.
• Global media ownership impacts content distribution and benefits.

Resistance and Alternative Media

• Alternative media counters corporate narratives.
• A discussion of market concentration and a need for diverse media.

Practical Applications and Assignments

• Concepts are applied to current media events.
• Analysis is applied to explain underlying dynamics.

Classical Economics

• Adam Smith's "invisible hand" proposes that individual self-interest benefits the public.
• Focus is placed on freedom and competition with less intervention on part of the Government
• Individuals act in their own self-interest and regulate the market.

Neoclassical Economics

• This economics incorporates math and scientific principles to the classical approach
• It focuses on marginal utility and maintaining balance.
• It disregard morals and history

Keynesian Economics

• Support the need for government intervention of the economy
• Public policy like spending can help stabilize a struggling economy
• Support for social safety nets for public

Neoliberalism

• Support free markets and limit government involvement
• Markets can solve problems and promote growth
• Deregulation, privatization, and international competition

Critique

• May result in wealth inequality and power

Capitalism's Effects on Media and Society

• The media is dominated by wealthy major corporations
• This may create lower worker wages and worker abuse
• Larger companies cause challenges for smaller entities
• Media focuses on profit rather than social needs

Concentration of Power

• Barriers to entry for corporations
• Limits diversity in terms of products and competition
• Wealth accumulates for only a few
• Corporate strategy includes constricting the quantity to make larger profit

Economic and Social Impact of Neoliberal Policies

• The public's welfare is put aside to focus on profits
• Public infrastructure declines
• Profits are favored over public needs

Corporate Media Influence

• A narrow view is displayed because of large corporations
• Media becomes "commodified" - profits matter over public interests
• Taking risks is avoided

The Global Impact of Neoliberalism

• Cultural Imperialism happens as US leads media
• This overshadows local cultures
• This includes tv and film becoming more globalized

Media Ownership

Ownership structures are defined by:

• Media conglomerates to control multiple aspects of media
• Vertical integration - control of the whole supply chain, from production to distribution
• Horizontal integration - when brands purchase others
• This leads to a centrist point of view

Application to Contemporary Issues

• Understanding history to create changes
• Having a framework that challenges corporate dominance
• Looking at governments and corporations and how media is shaped by them

Media Literacy and Education

• Understanidng how capitalism influences media

Interdisciplinary Media Work

• Economics, sociology, history and law helps us understand how dynamics move power

Market In Media

• Market concentration influences media output
• Profit is the goal of media
• Therefore competing is costly and should be avoided

Media Corporations

• Big players like Disney, NewsCorp, and Fox Broadcast are the standard
• Sony, Verizon, Google etc are also part of the bunch

Corporate Ventures

• Stockholders intertwine in many companies
• Liberty Media is one of these - lots of media holdings

Integration of Companies

• Horizontal integration comes are companies purchase one an other
• Vertical - whole chain covered
• Helps avoid concerns of anti-trust, challenges new people

Impact through Synergy

• Cross promotion through other family brands
• Disney and theme parks is one example
• Other companies like Dreamworks lost to this

Globalization is tied to deregulation

• Transnational corporations thrive in other countries
• Need to deregulate media and shift from state to being "privatized"
• This will help companies make their way abroad

Class 6 Concepts

• Revolving door happens when government roles influence corporations
• Special interest groups use lobbying to appear of a grassroots level - called Astroturfing
• Trump campaign had members paid to rally
• More money leads to power which leads to a decline in democracy

Society and Media influence the political

• Social Media is a big player
• Think tanks are funded be coporations to influence policy and research

Corporates in politics

• Big groups like Disney spend on lobbying for policy changes
• Roundtable and Commerce groups influence business
• AT&T and Verizon lobbying for neutrality rules

Wealth influencing politics

• Wealth influences who get selected as candidates
• Low pay for state workers makes it tougher to pursue a career in politics

Norris

• Political: power
• Economic: production, wealth, resources
• Communication; spreading info
• Institutions= rules (educational system) vs organizations = groups (corporation)

Jhally re: First Amendment

• The first amendent protects corporate speech, so they get more control of the media
• Commercial speech is preferred - advertising, not free

Consciousness Industry

• Shapes thoughts through advertising
• Versus

Culture Industry: commodification of culture

• Artistic work is a product and made for profit
• Ie: Blockbuster music

Value

• Use-value is utility
• Exchange-value is money Economical analysis happens through understanding Critique of capitalism Social implications Cultural insight

Hardy 1 themes and CPE's

Media is shaped by power balances How it is made and spread Impact balance

Cultural Imperialism and Globalization

• Cultural imperialism is dominating with western ideals
• Hard to understand how these interplay
• Hard for cultures to change

Wasko

• Political economy = how media is viewed, interdisciplinary

Harvey

What’s the main goal of the state + neoliberalism

Gandy

Is capitalism fair? Radical political economy is a way of looking at it

• Challenges ideas to expose power imbalances

Accomplishments of Gandy

Power is spread The views on capitalism Theory leads to more attention on models and the effects.

Dual Economy re: Bowie

Division of economy into two sectors: core = companies

• Periphery = smaller units Competition = the smaller businesses cannot compete with large firms Historicla Contret = small firms consolidate as steel tycoons emerge

Takeaways from them

Split between large and small Hardy chapter 3 This lead to marketization and products and service becoming "commodities" Free movement and the freedom of "intervention"

• Public = privatization
• Corporations need adopt profit oriented projects
• 3 Market Issues - failure

What critique do political economies make

• They are natural? Markets discriminate No role for collectives

Media problems?

Interactions Bad for public

McChesney view

Medals cannot compete because of a small amount of conglomerates The markets are too big, and the profits drive decision over consumer and audience Horizontal and vertical integration Barriers of entry are key No value for the viewer

Croteau

Trends in structure and merging are essential The media has become so consolidated by larger corporations

Vanhala

• Streaming is because of technology - internet, devices There is a small selection of firms controlling the costs Netflix faces challenges of regulations and high licensing Companies are overly commercializing to access to a "corporate "commercial space

Mendel

What do we mean by ownership? Is it important? There must be a complex balance with government What is ok to hold? How can influence be restricted?

Berdegerm

AI - a combination of technology and socials What is the focus of CPM and how AI controls capitalism Building are extracted This influences capitalism

Domhoff

• Power is control The best can influence what occurs

Corporations are established through legal frameworks and aim to generate profit for shareholders. Business practices can lead to unintended negative outcomes, such as factory farming and pollution. Media manipulation may occur for economic or ideological control, potentially fostering hate speech and misinformation.