Media Consolidation

Media Consolidation: Provides Consumer Choice vs. Limits Consumer Voice

Media deregulation has spawned consolidation in the communications industry. More and more media outlets are being bought up by just a few large corporations. Proponents of this merger trend claim it benefits consumers by providing them with more news and entertainment variety. If large corporations didn't buy up some media outlets, they may be weak or go out of business. If they are bought by a strong corporation, the corporation will keep more media outlets afloat. Bigger companies can capitalize on economies of scale and pass the benefits along to the consumer. However, critics argue that media consolidation harms the consumer. They say these mega-corporations are now free to engage in such practices as raising rates, limiting news sources, and driving competitors out of business.

Take Clear Channel Communications, for example. Because of the Telecommunications Act of 1996, Clear Channel has grown to be the largest radio and concert conglomerate. Many claim it wields its tremendous power to exert control over the industry. As one ad agency owner said, "Clear Channel will do anything they can, threaten me, go to my clients directly, anything to get control of the markets. They’ve ruined radio, as far as I’m concerned. And now they’re licking their chops to be able to control more of what the public sees and hears." (See first link under "Lessons Learned: Clear Channel Communications" below.)

Yet this is only one man’s opinion. Those who are pro-consolidation claim times have changed, and thus, so should the laws preventing media mergers. Because there are now many more outlets for news and entertainment, the old rules are no longer necessary or valid. Furthermore, the United States is built upon a free-market economy; therefore, let the mergers occur and see the consumer benefit.

Your paper should be approximately 5 pages long. Specifically:

- Describe the issue

- Analyze the issue & present your own arguments

- Interpret the issue according to your opponents' best arguments

- Evaluate the implications of the issue based upon your own frame of reference.

Overall, I'm looking for strong arguments in support of your opinions, in addition to thoughtful consideration of opposing viewpoints.

Save your paper according to this naming convention: LastnameCOM110Paper3.doc.

Then if you want to spend more time to make a stronger paper or find arguments others don't have, read in this order:

Search words (Type these into your browser): Media ownership; Media Mergers; Deregulation; Michael Powell: Chicago Media Action