media consolidation – Technology Liberation Front

Round Up the Usual Suspects

Jim Harper — Wed, 09 Dec 2009 13:34:53 +0000

The Comcast-NBC deal has the traditional media world all atwitter—well, better call it aflutter. “Atwitter” is losing its old media connotations.

So the New York Times rounded up a foursome of advocates to air their views, among them Adam Thierer and yours truly.

Huzzahs and rotten fruit in the comments, please.

(And you can see from comparing our posts which of us believes in economy in the use of words.)

From the Oxymoron File

Jim Harper — Fri, 13 Nov 2009 18:13:10 +0000

A public policy collaborator and sparring partner wrote me just now, saying: “I don’t imagine you guys spend much time looking at media monopolies!”

Think about it.

Media Deconsolidation (Part 25): The Series So Far

Adam Thierer — Wed, 17 Dec 2008 05:21:18 +0000

This is just a listing of the installments of my ongoing “Media Deconsolidation Series.” I needed to create a single repository of all the essays so I could point back to them in future articles and papers. For those not familiar with it, this series represents an effort to set the record straight regarding the many myths surrounding the media marketplace. These myths are usually propagated by a group of radical anti-media regulatory activists who I call the “media reformistas.” Sadly, however, many policymakers, journalists, and members of the public are buying into some of these myths, too.

In particular, I have spent much time here debunking the notion that rampant consolidation is taking place and that media operators are only growing larger and devouring more and more companies. In fact, nothing could be further from the truth. Over the past several years, traditional media operators and sectors have been coming apart at the seams in the face of unprecedented innovation and competition. The volume of divestiture activity has been quite intense, and most traditional media operators have been getting smaller, not bigger. As a result, America’s media marketplace is growing more fragmented and atomistic with each passing day.

Anyway, here’s the series so far…

Related reading:

What the Media Reformistas Really Want
Your Soapbox is My Soapbox! Thoughts on the Media Access Movement
BOOK: Media Myths: Making Sense of the Debate over Media Ownership (2005)
SPECIAL REPORT: Media Metrics: The True State of the Modern Media Marketplace (2008)
BOOK: A Manifesto for Media Freedom (with Brian Anderson, 2008).

“A Manifesto for Media Freedom” — my new book with Brian Anderson

Adam Thierer — Wed, 01 Oct 2008 15:15:16 +0000

I’m pleased to announce the publication of A Manifesto for Media Freedom, which I co-authored with Brian C. Anderson of the Manhattan Institute. Brian serves as editor of Manhattan Institute’s excellent City Journal and he is the author of best-selling books like South Park Conservatives and Democratic Capitalism and Its Discontents.

In this little manifesto, we highlight one of the central ironies of the Information Age. Namely, that despite “the breathtaking abundance of new and old media outlets for obtaining news, information, and entertainment…”

many people hate this profusion, and never more than when it involves political speech. The current media market, they charge, doesn’t represent true diversity, or isn’t fair, or is subject to manipulation by a small and shrinking group of media barons. They want the government to regulate it into better shape, which just happens to be a shape that benefits them. Doing so… would be a disaster, a kind of soft or not-so-soft tyranny that would wipe out whole sectors of media, curtailing free speech and impoverishing our democracy.

In other words, instead of celebrating the unprecedented cornucopia of media choices at our collective disposal, many policymakers and media critics are calling for just as much media regulation as ever. We itemize these threats in our chapters and they include: efforts to revive the “Fairness Doctrine”, media ownership regulations, “localism” requirements, Net neutrality mandates, a la carte regulations, cable and satellite censorship, video game censorship, regulation of social networking sites, campaign finance-related speech restrictions, and so on.

In each case, we advance a pro-freedom paradigm to counter the advocates of media control. What do we mean by the “media freedom” that we advocate as the alternative to these new regulatory crusades? Here’s how we put it in the book:

For media consumers, it’s the freedom to consume whatever information or entertainment we want from whatever sources we choose, without government restricting our choices. For media creators and distributors, it’s the freedom to structure their business affairs as they wish in seeking to offer the public an expanding array of media options, for both news and entertainment. And for both consumers and creators,media freedom is being able to speak one’s mind without restraint and without the threat of FCC or FEC bureaucrats telling us what is “fair.”

It doesn’t seem like much to ask until you realize how many people in Washington and academia today are calling for these various flavors of media regulation. Of course, it doesn’t help that media-bashing has always been a bipartisan sport. Indeed, depsite the fact that most of these efforts are lead by the Left, our book highlights how some folks on the Right are still guilty of joining some of these misguided regulatory crusades.

Republican presidential candidate John McCain, for example, has sponsored “a la carte” mandates for cable and satellite operators and sponsored the draconian campaign finance law that will forever bear his name, McCain-Feingold. He has also proposed a follow-up law: McCain-Feingold II. Although it did not pass, McCain’s measure would have required broadcasters to run 12 hours of “candidate-centered and issue-centered programming” in the six weeks prior to primary and general elections — without giving broadcasters any control over those 12 hours (half of which would have had to run during prime time). The bill would have created a voucher system for the purchase of airtime for political advertisements, financed by an annual spectrum-use fee on all broadcast license holders. In sum, the legislation would have forced broadcast stations to pay a tax to the federal government that would in turn finance a pool of funds that politicians could turn around and spend to run ads on those very stations!

Others on the Right have favored the Fairness Doctrine in the past, and more recently, some have joined the Net neutrality effort. And many conservatives have long been in favor of various forms of media censorship.

That being said, the most serious threats to media freedom today arise from the Left and our book serves primarily as a response to the many Leftist efforts to regulate media today. As we argue in the introduction:

The left seems certain that a media problem ails our society; it just can’t decide what that problem is. Some contend that real media choices are as limited or biased as ever, while others argue that our democracy is imperiled by too many media choices, making it hard to share common thoughts or feelings. What unites these two types of critics is their elitist presumption that they know what’s best for the rest of us. They would love to rewrite regulations to tilt the media in the direction they prefer; and if they are allowed to do so, what is shaping up to be America’s Golden Age of media could come to a sudden end.

The Left’s obsession with reinstating the Fairness Doctrine is particularly telling in this regard. [You can read our history of the Fairness Doctrine here] But, as we go on to note:

Some liberals suggest that even a new Fairness Doctrine wouldn’t be enough to correct a “structural imbalance” in the media marketplace. They want tightened ownership regulations, mandates ensuring “greater local accountability” over radio and TV broadcasters, and a significant ramping up of subsidies for public radio and TV stations. One leading leftist proposal would even force private broadcasters to fund public broadcasters! These proposals expose the left’s true goal: to regulate private media outlets comprehensively and drive out those owners who dare to offer right-leaning alternatives.

This movement is being driven by a wide variety of Left-leaning think tanks and advocacy groups, especially Free Press, Media Access Project, and the New America Foundation. These organizations will likely have a strong voice in an Obama administration regarding media law and Internet policy issues. And we fear that means that new regulatory shackles will be placed on the media and free speech as a result. That’s why we penned this manifesto at this time. As we conclude in our book:

Motivated by the naked desire for political control, a reactionary fear of the new, or genuine if misguided views on equality and fairness in the media, [these liberal media activists] threaten to enact regulations that will strangle or at least cripple this social development before it can begin to reach its potential. Those on the right are not free from these impulses, either. But they, as the prime beneficiaries of media abundance — of all the conservative and libertarian talk shows and websites that would suffer in a media landscape remade by the Democratic Party and liberal activists — should embrace, defend, and expand the freedom that made it possible.

Anyway, if you care about free speech and media freedom, I do you hope you will consider giving the book a look. The main page for our book is here. And you can find it on Amazon here.

Media Deconsolidation (Part 23): Cox Selling Most of its Newspapers

Adam Thierer — Thu, 14 Aug 2008 15:39:08 +0000

My ongoing media DE-consolidation series represents an effort to set the record straight regarding one of the leading myths about the media marketplace today: the notion that rampant consolidation is taking place and that operators are only growing larger and devouring more and more companies.

Nothing could be further from the truth. Over the past 3 to 5 years, traditional media operators and sectors have been coming apart at the seams in the face of unprecedented innovation and competition. The volume of divestiture activity has been quite intense, and most traditional media operators have been getting smaller, not bigger. “Traditional media’s numbers are shrinking,” argued FCC Commissioner Robert McDowell in a recent speech. “The ironic truth is,” McDowell continued, that “in many cases, media consolidation has actually become media divestiture. Companies… have been shedding properties to raise capital for new ventures.”

And so that trend continues today with the announcement from Cox Enterprises that it will be selling almost all its newspapers. According to the The Atlanta Journal-Constitution:

Cox Enterprises, the Atlanta-based media conglomerate that built a multibillion-dollar business from a single Ohio newspaper, announced Wednesday that it plans to sell all but three of its newspaper holdings. The company will retain flagship newspapers in Dayton, Ohio; West Palm Beach, Fla.; and Atlanta — including The Atlanta Journal-Constitution — but sell dozens of daily and weekly newspapers in Colorado, North Carolina and Texas. Company officials did not disclose an asking price for the properties but said revenue from the sales will be used to pay down debt and free up capital for other investments. Cox will also sell Valpak, the company’s nationwide direct-mail advertising division, officials said. Sandy Schwartz, the Cox president over the newspaper division, said the company has no plans to sell its newspapers in Atlanta, Dayton and West Palm Beach, which are moving aggressively to contain costs and establish strong online readerships. The sale comes amid slumping revenues and declining values for newspapers across the country as print media lose market share to the Internet.

Once again we see how life in the newspaper business can be a turbulent affair with grim long-term growth prospects. Nonetheless, let’s not lose sight of the fact that traditional media operations are once again growing smaller, just like all the media critics supposedly want. So, I eagerly look forward to the press releases from Free Press and Media Access Project noting that fact. But something tells me I shouldn’t hold my breath in anticipation of those statements since we know the media reformistas have a far more ambitious and radical “reform” agenda in mind.

What the Media Reformistas Really Want

Adam Thierer — Sun, 10 Aug 2008 23:50:40 +0000

Over at Reason’s “Hit and Run” blog, Matt Welch has penned a piece pointing out how it is impossible to make the anti-media activists happy. Welch notes that radical activist groups like Free Press go around demonizing media moguls like Rupert Murdoch because he supposedly symbolizes the fact that will live in an age of media monopolists who puppeteer all our news and entertainment from on high. It’s all 100% B.S., of course, as we have shown here again and again.

But even when confronted by the rise of alternative owners and ownership models, the Free Press fanatics show their true colors by saying that won’t work for them either. Walsh notes, for example, that the skake-up of the old Tribune empire and the emergence of Sam Zell as an independent owner of the Trib — and an owner hellbent on downsizing the old empire, no less — should be exactly what Free Press wants:

So along comes a decidedly unfaceless individualist who buys a newspaper company anchored in his two hometowns ? Chicago and Los Angeles ? and promptly takes it off the stock exchange, even making employees his partners. Instead of expanding his new company’s empire, he sells various pieces off, thus diluting whatever “opoly” we’re on now. All the while mandating more local coverage. Shall we try to guess how the StopBigMedia coalition has reacted to Sam Zell? The Chicago Reader’s Michael Miner talks to various media grumpuses, including Free Press Executive Director Josh Silver, and discovers that Zell is the new, woefully inappropriate poster boy for anti-media consolidation.

Here’s what Silver has to say about Zell:

“He insults journalists and journalism at virtually every whistle stop on his tour,” Silver replied, referring to Zell’s visits to Tribune Company properties. “He says it’s not about democracy ? it’s about profits. The American public and policy makers have to decide whether journalism is produced purely for the reaping of profit or if it’s a central component to a functioning participatory democracy. “And based on the answer to that question,” Silver went on, “you make policy accordingly. There is no such thing as a deregulated media policy system. The only question is, will the media be regulated for the largest media corporations or regulated on behalf of the American public. That’s what all of our anticonsolidation efforts are about.”

Michael Miner of the Chicago Reader points out why this is so silly:

If Zell would shut up, critics like Silver and [Bill] Moyers might notice that he makes a lousy poster boy for big media. He took the Tribune Company private and made its employees nominal co-owners. He’s not acquiring properties — he’s selling them off. America has always had it both ways about that choice Silver thinks the nation needs to make: journalism for profit or journalism for democracy. Zell has loudly and rudely told his staffs that from where he sits the second is predicated on the first, and turning a profit is something he knows a little more about than they do.

So if the Free Press folks don’t want Murdoch on the one hand, or Zell on the other, what do they want? As Ben Compaine notes, “What the hard core reformistas really want, it seems, is not diversity or an open debate but a media that promotes their own vision of society and the world.” That’s exactly right and, more specifically, as I argued in my Media Myths book, the media reformistas want to impose this control by borrowing the fantasy that “the public owns the [broadcast] airwaves” and extending it to ALL media platforms and outlets. In other words, Free Press wants an UnFree Press. To cast things in neo-Marxists terms that they could appreciate, they want to take control of the information means of production.

Don’t take my word for it? Well, then, listen to Robert McChesney. He is the godfather of the media reformista movement, the founder of Free Press, and an avowed socialist. And he has made his intentions in this regard abundantly clear throughout his prolific career. In his book Rich Media, Poor Media, he says that “Media reform cannot win without widespread support and such support needs to be organized as part of a broad anti-corporate, pro-democracy movement.” He casts everything in “social justice” terms and speaks of the need “to rip the veil off [corporate] power, and to work so that social decision making and power may be made as enlightened and as egalitarian as possible.”

What exactly does all that mean in practice for media and media operators? In his book Our Media, Not Theirs: The Democratic Struggle against Corporate Media with John Nichols of The Nation, McChesney argues that media reform efforts must begin with “the need to promote an understanding of the urgency to assert public control over the media.” They go on to state that, “Our claim is simply that the media system produces vastly less of quality than it would if corporate and commercial pressures were lessened.”

Sure, whatever you say, guys. If we just put you and your UnFree Press buddies in control, the media world would be perfect. We’d have plenty of choice and abundant viewpoints represented. Oh, wait a minute, we already have that today!! It’s just that they don’t like the fact that THEIR particular socialist viewpoints are not more widely accepted throughout the media marketplace. Well, tough luck. Hey, I don’t like that fact that not everyone on the nightly news or talking head shows isn’t spreading my libertarian gospel to the world, but I would never be so arrogant as to force them to do so as the UnFree Press reformistas would like to do using the coercive power of Big Government to bend media to their will.

Media Metrics: The Report

Adam Thierer — Tue, 15 Jul 2008 18:30:50 +0000

Faithful readers will recall that, several months ago, I penned a 7-part “Media Metrics” series that took a hard look at the health of the media marketplace. Today, the Progress & Freedom Foundation is releasing a greatly expanded version of these essays that I have put together with my PFF colleague Grant Eskelsen. In this 100-page special report, “Media Metrics: The True State of the Modern Media Marketplace,” we begin by noting that heated debates about the state of the media marketplace continue to rage in Washington, and opinions seem to range from grim to outright apocalyptic. As we note on pg. 1:

Many people—including a large number of legislators and regulators—argue that America’s media marketplace is in a miserable state. Some claim that citizens lack choice in media outlets and that options are just as scarce as ever. Others believe that media “localism” is dead or that many groups or niches go underserved because of a lack of true “diversity” in media. Others argue that the market is hopelessly over-concentrated in the hands of a few evil media barons who are hell-bent on force-feeding us corporate propaganda. And still others say that the quality of news and entertainment in our society has deteriorated because of a combination of all of the above. It all sounds quite troubling, but is any of it true?

After taking an objective look at the true state of America’s media marketplace, we conclude that such pessimism is unwarranted. Indeed, a careful review of the facts reveals that—contrary to what those media critics suggest—we have more media choice, more media competition, and more media diversity than ever before. Indeed, to the extent there was ever a “golden age” of media in America, we are living in it today. The media sky has never been brighter and it is getting brighter with each passing year. We come to this conclusion by looking beyond the rhetoric that has for too long governed debates about media in American and providing a comprehensive look at a variety of media sectors such as audio, video, print and online media. Our survey contains over 70 charts and exhibits illustrating facts and figures on such diverse topics as advertising revenue, company market share, audience trends, and areas of growth in the sector. We will also aim to periodically updated the report to reflect the rapidly evolving media industry.

We encourage readers to provider input about how to improve and expand the report going forward in an attempt to refine and improve the metrics. And we look forward to future debates on this subject–debates that we hope will be guided by facts instead of fanaticism and by evidence instead of emotion. The hyperbolic rhetoric, shameless fear-mongering, and unsubstantiated claims that have driven policy debates in recent years have no foundation in reality and should be rejected as the debate over media policy continues.

This and future installments of “Media Metrics: The True State of the Modern Media Marketplace” will be available on the PFF website at www.pff.org/mediametrics. I have also embedded the entire document below as a Scribd file so that those interested in the topic can peruse the report immediately.

http://documents.scribd.com/ScribdViewer.swf?document_id=3955314&access_key=key-pb8y9dwlnhy4gzw3xn7&page=&version=1&auto_size=true

Media Metrics: The True State of the Modern Media Marketplace — Version 1.0 (Thierer-PFF) – Upload a Document to Scribd

Read this document on Scribd: Media Metrics: The True State of the Modern Media Marketplace — Version 1.0 (Thierer-PFF)