Media Ownership questions

1. What is horizontal and vertical integration in the media industry and can you provide an example?

Definition of 'Vertical integration' - When a company expands its business into areas that are at different points on the same production path, such as when a manufacturer owns its supplier and/or distributor. Vertical integration can help companies reduce costs and improve efficiency by decreasing transportation expenses and reducing turnaround time, among other advantages. However, sometimes it is more effective for a company to rely on the expertise and economies of scale of other vendors rather than be vertically integrated.

Examples of vertical integration include:

- A mortgage company that both originates and services mortgages, meaning that it both lends money to homeowners and collects their monthly payments.

- A solar power company that produces photovoltaic products and also manufacturers the cells, wafers and modules to create those products would be considered vertically integrated.

- The merger of Live Nation and Ticketmaster created a vertically integrated entertainment company that manages and represents artists, produces shows and sells event tickets.


Definition of 'horizontal integration' - The acquisition of additional business activities that are at the same level of the value chain in similar or different industries. This can be achieved by internal or external expansion. Because the different firms are involved in the same stage of production, horizontal integration allows them to share resources at that level. If the products offered by the companies are the same or similar, it is a merger of competitors. If all of the producers of a particular good or service in a given market were to merge, it would result in the creation of a monopoly. Also called lateral integration.

Example of 'Horizontal integration' - Disney, which creates movies and television shows, uses the characters to create toys and market other products to kids, etc. would be an example of horizontal integration. However they do not own the institution that manufactures the toys etc.

2. What does Melody (1978) believe happens to the 'Media market'?
According to William Melody, the biggest threat to freedom of expression in the United States or elsewhere is the possibility that private entrepreneurs will always tend to monopolise the marketplace conditions or circumstances, access to the marketplace of ideas is restricted to a privileged few. 

3. What does Newman (1991) believe happens to media content? Why is this a problem for the audience? 
Media content will come standardised and uniform in content, this is a problem for audiences because they get boring and repetetive films and advertisement.

4. What does Sterling think about the level of research?
He believes that there is suprisingly little research has been done, only marginally more than we could draw on 20 years ago. He argues that too much is assumed or anecdotal, merely suggesting results from ownership changes.

5. What does the media reproduce according to Gomery (2000)?
The mass media is crucial for the creation of of reliable information, knowledge, ideology and propoganda in contemporary Capitalist societies.

6. The media industry and corporate power from a powerful cartel. What does it do to local cultures (Meier)?

7. How media corporations influenced the law? What impact does this have on new buissness entering the market?

big media corporations have been able to manipulated the law so that they can control more companies hich restricts the market place and limits audience enjoyment

8. What threat does convergence pose to media ownership?
cross media laws have been relaxed which means that a film company can buy a video game company which means that less companies can get into the industry

9. what does the FCC believe about programme diversity?