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Discuss the issues raised by media ownership in the
production and exchange of media texts in your chosen
media area.


Planning      Analysis                      Example
Intro         Newspapers
              Define media ownership        NI
              Production & Exchange
Discussion    Falling sales – need to
              review model
              Importance of advertising
              Convergence                   Sun/Sky Express/Ch5
              Exchange on line              Websites
                                            Downloadables
                                            Connectivity
                                            Digital citizens
              Levenson and media
              power
Conclusion    Danger but who has the
              power?

I propose to respond to this question with reference to the newspaper
industry, but will make reference to other media as increasingly today we live
in a multi-media world. Issues surrounding press(media) ownership have
been a concern for many years from the days of Lord Beaverbook and Lord
Northcliffe in the first part of the last century to todays discussions on the
power and influence of global multi media conglomerates such as News
International and Time/Warner. Equally, as technology advances, audiences
are finding new ways to consume media texts such as newspapers, and this
is forcing the media companies to revue their business models on how they
produce and exchange their offerings with their customers.

The fundamental background to the media industry is that it is in the
communication business, whether it is communicating information as in the
case of news or advertising, emotions as in the case of films and music etc.
Originally, newspapers function was to provide information of the day to a
mass audience, and until relatively recently this remained their prime function,
and whoever controlled the content of the newspapers determined what news
of the day was allowed to be published and what, if any “spin” was placed on
the news. This gave the proprietors of newspapers huge power in politics
and, for example the reporting of royalty, and historically, they have influenced
politics to a large degree. The arrival of broadcast news, especially with the
BBC’s requirement to reporting free from bias or influence, has introduced
new challenges to the news industry.

As audiences have become more and more used to accessing news and
information in real time and at their convenience, the traditional newspaper
has had to react to this challenge, to the point that todays newspapers contain
around equal proportions of news, advertising and Non-News Content (NNC),
which is often magazine and celebrity news which goes out of date much
more slowly. Despite this reaction to new news channels, newspaper sales
continue to slide in the UK as the audiences find their news in ways more
appropriate to their needs. The Sun, for example is the best selling
newspaper in the UK today, with sales of around 2.6 million copies per day,
but which shows a 7% decline in the last 12 months and a fall from 3.3 million
copies daily 10 years ago. Compound this with a much greater fall in
advertising revenue, as advertisers spend their budgets on more targeted
advertising, it is clear that the traditional newspaper media is fighting to
survive. We have seen national newspapers sold for nominal sums -
AlexanderLebedev bought the Independent for £1 in 2010, reflecting the debts
in this business.

In order to survive, many newspapers are part of much larger media
conglomerates with interests in a range of media. News International,
controlled by the Murdoch family, owns The Times and The Sun in the UK as
well as the Sky broadcasting platforms and stations, and is a prime
shareholder in BskyB, as well as holding a significant holding of ITV shares.
This reflects the need for synergy across platforms and the significance of
convergence, as modern media businesses become more and more similar.
However, as such businesses become so large, and especially where the
business is run autocratically, as in the case of News International, the power
of the business to influence public opinion, and their ability to reflect their own
interests in their communications, gives them power which they are in a
position to abuse. Politicians try to gain favour to be portrayed favourably,
and the media company can access corridors of power unavailable to the
public or other smaller media companies. The Leveson enquiry is examining
this very subject at present but it is difficult to see how it can be possible to
control a multinational the size of News International when it exists in so many
media.

The classic newspaper model of a consumer purchasing a paper copy,
printed 12 hours or so earlier, and the financial return being passed back
along the supply chain is clearly flawed, and the sustained decline in sales
ism clear evidence of this. Today’s audiences want the news to be instant
and up-to-minute rather than up-to-date. Increasingly, we live our lives on
line, and in an interactive web 2.0 manner. Indeed, we are now beginning to
expect the customised web, so called web 3.0, and the traditional newspaper
does not supply these needs.

Web-based newspapers have existed for year, and initially were seen as
additions to the classic paper version. Increasingly today, the web versions
provide an up to the minute interactive news source more suited to todays
audiences. Some, such as The Sun website closely resemble the printed
version, but accessed easily with indexes allowing “2-clicks to anywhere” to
speed finding your preferred article. Some such as The Telegraph offer
emails twice per day with links to their website, and you are able to pre-
determine the broad subjects you want to hear about. This model has 2 major
problems. Firstly, to access the information, you need to be connected, and of
course increasingly we are “digital citizens”, as Bill Thompson calls us, and
through our smartphones, and wifi are living our lives connected. Secondly,
the newspapers are struggling to define a model whereby they can generate
revenue for this model other than charging for advertising space. This is
especially difficult when you compare the BBC News website, which is free,
unbiased and free of advertising.

Downloadable versions of the paper copy, often with additional features have
the advantage of being updated to the moment of download, can contain
additional features, like embedded videos, and can be made available by
subscription. This is the model being followed by The Times who offer this
service at a significant discount to the paper version. This model has been
enabled by the widespread use of tablets such as theiPad to read content off
line.

In conclusion, it is clear that there will always be someone who owns and
therefore influences the messages and content of their communications, and
with this power comes great responsibility. In the newspaper industry, the
traditional paper copy version is threatened by newer web based news media,
and the companies which will succeed are those prepared to work with the
new media and supply what the audiences now want at a price they are
prepared to pay. Unless they do so, some newspaper businesses will not
survive in the longer term.

1080 words
KLD
5 May 2012

Student activity
      Highlight
          o technical terms
          o examples
      Criticise
          o Content
          o Examples
          o Narrative content – does it answer the question?

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Discuss the issues raised by media ownership in the production and exchange of media texts in your chosen media area

  • 1. Discuss the issues raised by media ownership in the production and exchange of media texts in your chosen media area. Planning Analysis Example Intro Newspapers Define media ownership NI Production & Exchange Discussion Falling sales – need to review model Importance of advertising Convergence Sun/Sky Express/Ch5 Exchange on line Websites Downloadables Connectivity Digital citizens Levenson and media power Conclusion Danger but who has the power? I propose to respond to this question with reference to the newspaper industry, but will make reference to other media as increasingly today we live in a multi-media world. Issues surrounding press(media) ownership have been a concern for many years from the days of Lord Beaverbook and Lord Northcliffe in the first part of the last century to todays discussions on the power and influence of global multi media conglomerates such as News International and Time/Warner. Equally, as technology advances, audiences are finding new ways to consume media texts such as newspapers, and this is forcing the media companies to revue their business models on how they produce and exchange their offerings with their customers. The fundamental background to the media industry is that it is in the communication business, whether it is communicating information as in the case of news or advertising, emotions as in the case of films and music etc. Originally, newspapers function was to provide information of the day to a mass audience, and until relatively recently this remained their prime function, and whoever controlled the content of the newspapers determined what news of the day was allowed to be published and what, if any “spin” was placed on the news. This gave the proprietors of newspapers huge power in politics and, for example the reporting of royalty, and historically, they have influenced politics to a large degree. The arrival of broadcast news, especially with the BBC’s requirement to reporting free from bias or influence, has introduced new challenges to the news industry. As audiences have become more and more used to accessing news and information in real time and at their convenience, the traditional newspaper has had to react to this challenge, to the point that todays newspapers contain
  • 2. around equal proportions of news, advertising and Non-News Content (NNC), which is often magazine and celebrity news which goes out of date much more slowly. Despite this reaction to new news channels, newspaper sales continue to slide in the UK as the audiences find their news in ways more appropriate to their needs. The Sun, for example is the best selling newspaper in the UK today, with sales of around 2.6 million copies per day, but which shows a 7% decline in the last 12 months and a fall from 3.3 million copies daily 10 years ago. Compound this with a much greater fall in advertising revenue, as advertisers spend their budgets on more targeted advertising, it is clear that the traditional newspaper media is fighting to survive. We have seen national newspapers sold for nominal sums - AlexanderLebedev bought the Independent for £1 in 2010, reflecting the debts in this business. In order to survive, many newspapers are part of much larger media conglomerates with interests in a range of media. News International, controlled by the Murdoch family, owns The Times and The Sun in the UK as well as the Sky broadcasting platforms and stations, and is a prime shareholder in BskyB, as well as holding a significant holding of ITV shares. This reflects the need for synergy across platforms and the significance of convergence, as modern media businesses become more and more similar. However, as such businesses become so large, and especially where the business is run autocratically, as in the case of News International, the power of the business to influence public opinion, and their ability to reflect their own interests in their communications, gives them power which they are in a position to abuse. Politicians try to gain favour to be portrayed favourably, and the media company can access corridors of power unavailable to the public or other smaller media companies. The Leveson enquiry is examining this very subject at present but it is difficult to see how it can be possible to control a multinational the size of News International when it exists in so many media. The classic newspaper model of a consumer purchasing a paper copy, printed 12 hours or so earlier, and the financial return being passed back along the supply chain is clearly flawed, and the sustained decline in sales ism clear evidence of this. Today’s audiences want the news to be instant and up-to-minute rather than up-to-date. Increasingly, we live our lives on line, and in an interactive web 2.0 manner. Indeed, we are now beginning to expect the customised web, so called web 3.0, and the traditional newspaper does not supply these needs. Web-based newspapers have existed for year, and initially were seen as additions to the classic paper version. Increasingly today, the web versions provide an up to the minute interactive news source more suited to todays audiences. Some, such as The Sun website closely resemble the printed version, but accessed easily with indexes allowing “2-clicks to anywhere” to speed finding your preferred article. Some such as The Telegraph offer emails twice per day with links to their website, and you are able to pre- determine the broad subjects you want to hear about. This model has 2 major problems. Firstly, to access the information, you need to be connected, and of
  • 3. course increasingly we are “digital citizens”, as Bill Thompson calls us, and through our smartphones, and wifi are living our lives connected. Secondly, the newspapers are struggling to define a model whereby they can generate revenue for this model other than charging for advertising space. This is especially difficult when you compare the BBC News website, which is free, unbiased and free of advertising. Downloadable versions of the paper copy, often with additional features have the advantage of being updated to the moment of download, can contain additional features, like embedded videos, and can be made available by subscription. This is the model being followed by The Times who offer this service at a significant discount to the paper version. This model has been enabled by the widespread use of tablets such as theiPad to read content off line. In conclusion, it is clear that there will always be someone who owns and therefore influences the messages and content of their communications, and with this power comes great responsibility. In the newspaper industry, the traditional paper copy version is threatened by newer web based news media, and the companies which will succeed are those prepared to work with the new media and supply what the audiences now want at a price they are prepared to pay. Unless they do so, some newspaper businesses will not survive in the longer term. 1080 words KLD 5 May 2012 Student activity Highlight o technical terms o examples Criticise o Content o Examples o Narrative content – does it answer the question?