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Chapter 13: Essay
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Essay
1. What are the three basic structures of today's mass media industries, and how do they differ?
ANSWER:
Media industries are typically structured in one of three basic ways: monopoly,
oligopoly (the most common structure), or limited competition (typical of the radio
and newspaper industries). In a monopoly, one company dominates production and
distribution. In an oligopoly, a few firms dominate and industry. In a limited
competition (sometimes called "monopolistic competition"), there are many
producers and sellers but only a few products.
2. Name and describe the trend for governments to take a decreasing role in monitoring the
structure and content of media (as well as other industries).
ANSWER:
Deregulation is the trend that governments take to bring about a decreasing role in
monitoring the structure and content of media as well as other industries.
Corporations were not happy under antitrust rules and other regulations, and with the
use of public relations tactics and aggressive lobbying campaigns from the 1920s
onward, they worked to turn the anticorporate rhetoric into a commonsense narrative
that government regulation was bad for business and bad for America. Deregulation
led to easier mergers, corporate diversifications, and increased tendencies in some
sectors toward oligopolies (especially in air travel, energy, finance, and
communications).
3. The general trend of deregulation made significant changes to the media landscape. Explain
the idea behind deregulation and the major media marketplace changes that followed.
ANSWER:
Deregulation is the trend that governments take to bring about a decreasing role in
monitoring the structure and content of media as well as other industries. According
to the text, one of the media sectors most visibly deregulated was broadcasting. In
1953, as television was expanding across the country, the FCC adopted the 7-7-7
Rule, limiting companies to owning no more than seven AM radio stations, seven
FM radio stations, and seven television stations. These ownership limitations helped
ensure a diversity of broadcast media ownership as well as diverse and alternative
viewpoints. However, by the 1980s, the ownership limits had been slowly written
away. In 1984, the FCC expanded the ownership rule to 12-12-12; it was increased to
18-18-12 in 1992, and then to 20-20-12 in 1994.
The Telecommunications Act of 1996 (signed by President Bill Clinton) brought
telephone business and freely raise their rates.
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4. How have media mergers changed the economics of mass media?
ANSWER:
In the mid-1980s, as the Justice Department was breaking up AT&T's hundred-year-
old monopoly, the government was authorizing a number of mass media mergers that
consolidated power in the hands of a few large companies. For example, when
General Electric set out to purchase RCA-NBC in the 1980s, the FTC, the FCC, and
the Justice Department had few objections. Most media companies have skirted
monopoly charges by purchasing diverse types of mass media rather than trying to
control just one medium. Now these large conglomerates can cross-promote their
products through their multiple channels.
5. How does the modern concept of hegemony apply to the current media landscape?
ANSWER:
Hegemony is the acceptance of the dominant values in a culture by those who are
subordinate to those who hold economic and political power. The word hegemony
has roots in ancient Greek, but Italian philosopher and activist Antonio Gramsci
came up with a modern understanding of hegemony. It is about how a ruling class in
a society maintains its power. It does so not simply by military or police force but
more commonly by citizens' consent and their deference to power. He explained that
people who are without power—the disenfranchised, the poor, the disaffected, the
unemployed, the exploited workers—do not routinely rise up against those in power.
This is how this process actually works in our society: lobbyists, the rich, and our
powerful two-party political system convince regular citizens that they should go
along with the status quo. Edward Bernays, one of the founders of modern public
relations, wrote in his 1947 article "The Engineering of Consent" that companies and
rulers couldn't lead people—or get them to do what the ruling class wanted—until the
people consented to what those companies or rulers were trying to do, whether it was
convincing the public to support women smoking cigarettes or convincing them to
support going to war. You can see how this played out after 9/11 and even in
everyday commercials, which play on our fears, as well as "fake news," which
distracts us from looking deeply into what is actually going on.
6. What purpose does it serve for politicians and powerful media companies to provide
"commonsense" narratives to the public?
and religious belief) are rewarded with economic success, and political arrangements
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Chapter 13: Essay
(e.g., the traditional two-party system) become accepted as normal and natural ways
to organize and see the world.
7. The idea of common sense sounds like it should be a good thing. How might the way the
concept is often used be bad for democracy?
ANSWER:
To understand how common sense is practically and symbolically transmitted, we
must understand the central importance of storytelling to culture. Stories are often the
way for delivering common sense. Therefore, ideas, values, and beliefs can be carried
in our mainstream stories. The narrative, then, is the normal and familiar structure
that helps mold ideas, values, and beliefs into common sense and normalizes them
into being "just the way things are."
The reason common narratives work is that they identify with a culture's dominant
values. American Dream stories have told us that if we work hard and practice such
values, we will triumph and be successful. Through this process, the media and the
powerful companies that control them provide the commonsense narratives that keep
the economic status quo relatively unchallenged and leave little room for other points
of view.
In the end, hegemony helps explain why we occasionally support economic plans and
structures that may not be in our best interest. We may do this out of altruism, as
when wealthy people or companies favor higher taxes because of a sense of
obligation to support those who are less fortunate. But more often, the American
Dream story is so powerful in our media and popular culture that many of us believe
we have an equal chance of becoming rich and therefore successful and happy.
8. Deregulation, globalization, and new media technologies have had significant effects on the
content, shape, and business of media as a whole. Pick two changes you think are most
significant, and discuss their major impact.
ANSWER:
Deregulation and new media technologies have had the greatest impact on our
society. First, deregulation has limited the democracy of radio, television, and
newspapers. The Telecommunications Act of 1996 gave too few too much power and
control over what we see and read. Second, new media technologies have created
convergence, which is bringing older technologies into new technologies. On the
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Chapter 13: Essay
segment on NBC's Today Show, and (3) an NBC News reporter appearing on
MSNBC for election coverage. Today, synergy is an important goal for large media
corporations and is often the reason given for expensive mergers and acquisitions.
10. How do global and specialized markets factor into today's media economy?
ANSWER:
International expansion has allowed media conglomerates some major advantages,
including secondary markets in which to earn profits and advance technological
advances. As media technologies get cheaper and more portable, American media
proliferate both inside the country and around the world. Because of the Internet,
media products can easily reach everywhere. Globalism permits companies that lose
money on products at home to profit abroad. Roughly 80 percent of U.S. movies do
not earn back their costs in U.S. theaters and depend on foreign markets and video
and streaming revenue to make up for losses.
11. Why do some critics charge that concentration of media ownership in the hands of a few
large conglomerates is antidemocratic?
ANSWER:
One critic of media mergers is Ben Bagdikian, author of The Media Monopoly.
Bagdikian has argued that although there are abundant products in the market—
thousands of daily and weekly newspapers, radio and television stations, magazines,
and book publishers—only a limited number of companies are in charge of those
products. Bagdikian and others fear that this represents a dangerous antidemocratic
tendency, in which a few media moguls wield an insane amount of economic control.
There is little diversity in media ownership. For example, the distribution of U.S.
airwaves in the 1930s went only to white male owners. Today, the majority of media
companies are owned by white men.
12. Is there such a thing as a global village? What does this concept mean to you?
ANSWER:
The world has gotten smaller with the technological advances. Everything is
connected to everything else. What one country does affects the entire globe. What
this means to me is that I have the ability to learn about other countries without
necessarily going there. I can Facetime or Skype or do a video chat and essentially
"be there." I like this idea, but the truth is that because of deregulation and the
majority of the media being in the hands of a few men, they dictate what we see and
hear. Because that group is homogeneous and has values related to white patriarchal
capitalism, there are few diverse ideas.
13. What are the differences between freedom of consumer choice and consumer control?
ANSWER:
In discussing free markets, economists distinguish between two similar types of
consumer power: consumer control over marketplace goods, and freedom of
consumer choice. Most Americans and the citizens of other developed nations have
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Chapter 13: Essay
consumer choice—options among a range of media products. But consumers and
even some media employees have limited consumer control, which is the power in
deciding what kinds of media get created and distributed.
14. Name one argument for and one argument against the spread of global media.
ANSWER:
Global media can be both good and bad. On the one hand, the notion of freedom that
is associated with innovation and rebellion in American culture has been embraced
internationally. The global spread of media and increased access to media have made
it harder for political leaders to secretly repress dissident groups, as police and state
activity (such as the torture of illegally detained citizens) can now be documented
digitally and easily dispatched by satellite, the Internet, and cell phones around the
world.
On the other hand, American media are shaping the cultures and identities of other
nations. American styles in fashion and food, as well as media fare, dominate the
global market—a process known as cultural imperialism. Many international
observers say that the idea of consumer control or input is even more remote in
countries inundated by American movies, music, television, and images of beauty.
15. Describe three negative effects of media consolidation.
ANSWER:
Three negative effects of media consolidation are control in the hands of few, less
public debate, and political contributions. Merged and multinational media
corporations will continue to control more aspects of production and distribution. Of
pressing concern is the impact of mergers on news operations, particularly the
influence of large corporations on their news subsidiaries. These organizations have
the capacity to use major news resources to promote their products and determine
national coverage.
Because of the growing consolidation of mass media, it has become increasingly
difficult to sustain a public debate on economic issues. Unchecked corporate political
contributions count as political speech, causing some corporations to experience
backlash (or praise) once their customers discover their political positions.
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1. Sometimes called monopolistic competition, _______ competition refers to a market with
many producers and sellers but only a few products within a particular category.
ANSWER:
limited
2. The _______ broke up the Standard Oil Company in 1890.
ANSWER:
Sherman Antitrust Act
3. The _______ allowed dealers to sell competing products.
ANSWER:
Clayton Antitrust Act
4. The _______ limited anticompetitive mergers.
ANSWER:
Celler-Kefauver Act
5. The _______ permitted telephone companies to enter into the TV business.
ANSWER:
Telecommunications Act of 1996
6. The _______ corporation owns the ABC television network.
ANSWER:
Disney
7. The twentieth century saw a shift away from a manufacturing economy to a(n) _______
economy in the United States.
ANSWER:
information
8. The promotion and sale of a product (in all its versions) throughout the various subsidiaries of
a media conglomerate is called _______.
ANSWER:
synergy
9. _______ is the phenomenon of one country's media, fashion, and food dominating the global
market and shaping the cultures and identities of other nations.
ANSWER:
Cultural imperialism
Multiple Choice
1. Netflix struggled from 1997 until 2016 and even tried to sell out to Google.
a.
True
b.
False
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ANSWER:
b
2. Netflix killed the video store, and it is in the process of killing the movie theaters.
a.
True
b.
False
ANSWER:
b
3. Media industries are typically structured in one of three ways: as a monopoly, an oligopoly
(the most common structure), or a limited competition (typical of the radio and newspaper
industries).
a.
True
b.
False
ANSWER:
a
4. The shift to an information-based economy emphasized the cultivation of specialized niche
media markets.
a.
True
b.
False
ANSWER:
a
5. The purpose of antitrust laws is to encourage diversity and competition in the marketplace.
a.
True
b.
False
ANSWER:
a
6. The purpose of the 1950 Celler-Kefauver Act was to limit corporate mergers and joint
ventures that reduced competition.
a.
True
b.
False
ANSWER:
a
7. The movement toward business deregulation started during the presidency of Ronald Reagan
(1981–1989).
a.
True
b.
False
ANSWER:
b
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8. The government trend toward deregulation was actually begun during the Carter years.
a.
True
b.
False
ANSWER:
a
9. Government controls over business were drastically weakened during the presidency of
Ronald Reagan (1981–1989).
a.
True
b.
False
ANSWER:
a
10. The deregulation movement returned media economics to nineteenth-century principles.
a.
True
b.
False
ANSWER:
a
11. The ABC television network is owned by Disney.
a.
True
b.
False
ANSWER:
a
12. Most media companies spread out their holdings among various types of mass media rather
than trying to control one medium, to avoid monopoly charges.
a.
True
b.
False
ANSWER:
a
13. Because today's flexible economy demands fast product development, smaller media
companies have an advantage over their larger competitors.
a.
True
b.
False
ANSWER:
b
14. The era of flexible markets coincided with an increase in the number of workers who
belonged to labor unions.
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a.
True
b.
False
ANSWER:
b
15. From 2009 to 2012, most U.S. postrecession growth was among middle-class Americans.
a.
True
b.
False
ANSWER:
b
16. The global economy has reduced prices to the point where most low-paid workers in Third
World factories can afford the stereos and TV sets they help manufacture.
a.
True
b.
False
ANSWER:
b
17. Due to the rise of specialization, people under eighteen and women over fifty have more
cable television shows targeted at them.
a.
True
b.
False
ANSWER:
a
18. The term synergy describes the dynamic creative energy of media corporations such as
Disney.
a.
True
b.
False
ANSWER:
b
19. Synergy typically refers to the promotion and sale of different versions of a media product
across the various subsidiaries of a media conglomerate.
a.
True
b.
False
ANSWER:
a
20. The success of Snow White, Fantasia, and Pinocchio propelled the Disney company to
major-studio status.
a.
True
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b.
False
ANSWER:
b
21. Disney now owns Iron Man, Spider-Man, and X-Men.
a.
True
b.
False
ANSWER:
a
22. Apple holds the position of top digital media conglomerate.
a.
True
b.
False
ANSWER:
b
23. Former CBS broadcast chief William Paley once argued that anyone who attacked the
commercial broadcast system was attacking democracy itself.
a.
True
b.
False
ANSWER:
a
24. Most citizens of developed countries have a wide range of media products available to them
but have little say in which media are created and circulated.
a.
True
b.
False
ANSWER:
a
25. The global spread of media software and electronic hardware has made it easier for political
leaders to secretly suppress dissident groups.
a.
True
b.
False
ANSWER:
b
26. Defenders of American popular culture argue that it creates an arena in which citizens can
raise questions.
a.
True
b.
False
ANSWER:
a
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27. One concern about the creation of a global village is cultural disconnection.
a.
True
b.
False
ANSWER:
a
28. News organizations owned by large media conglomerates have been significantly increasing
the number of reporters assigned to cover international issues, especially following the terrorist
attacks of September 11, 2001.
a.
True
b.
False
ANSWER:
b
29. The U.S. mainstream news media have recently struggled to sustain a public debate.
a.
True
b.
False
ANSWER:
a
30. Public debates about the structure and ownership of the mass media are encouraged by media
owners, who consider such discussion to be in their best interests.
a.
True
b.
False
ANSWER:
b
31. The book publishing and motion-picture industries are both examples of
a.
monopolies.
b.
oligopolies.
c.
O & Os.
d.
limited competition.
ANSWER:
b
32. Media organizations do all of the following EXCEPT
a.
develop or distribute content.
b.
support political candidates.
c.
set prices.
d.
generate profit.
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ANSWER:
b
33. Media companies generate revenue when consumers do all of the following EXCEPT
a.
buy a house.
b.
buy a book.
c.
buy a movie.
d.
buy a newspaper.
ANSWER:
a
34. Media companies make money through product placement advertising in all of the following
EXCEPT
a.
movies.
b.
radio.
c.
television.
d.
video games.
ANSWER:
b
35. If the first half of the twentieth century was part of the Industrial Age, the shift away from
manufacturing jobs starting in the 1950s led to a period often known as the
a.
Monopolistic Age.
b.
Information Age.
c.
Cultural Imperialism Age.
d.
MTV Age.
ANSWER:
b
36. Which of the following is a characteristic of the shift from an industrial to an information
economy?
a.
a change in focus from mass production to niche markets
b.
a movement from global to local markets
c.
a movement from office work to factory and industrialized production
d.
an emphasis on laborers rather than service workers
ANSWER:
a
37. The billion-dollar mergers and takeovers that swept the mass media in the 1990s were
possible because of
a.
speculation on Wall Street.
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b.
deregulation.
c.
the collapse of communism.
d.
the rise of the World Wide Web.
ANSWER:
b
38. The transition to an information economy was characterized by
a.
an increasingly centralized and permanent workforce.
b.
intense product rivalry between one country and another.
c.
an emphasis on mass production rather than niche markets.
d.
concentrated ownership in nearly every media sector.
ANSWER:
d
39. The first antitrust law, enacted in 1890, was the ______ Act.
a.
Clayton Antitrust
b.
Sherman Antitrust
c.
Celler-Kefauver
d.
Federal Trade Commission
ANSWER:
b
40. The Telecommunications Act of 1996
a.
placed limits on cable company rate increases.
b.
allowed telephone companies to enter the TV and radio business.
c.
allowed a company in the Top 20 market to own a newspaper and a TV station as long
as there were at least eight TV stations in the market.
d.
used regulation to guard against ownership concentration.
ANSWER:
b
41. After the Telecommunications Act of 1996, several radio corporations quickly ballooned to
include _____ of stations.
a.
hundreds
b.
thousands
c.
tens of thousands
d.
millions
ANSWER:
a
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42. Given that ______ percent of new media products fail, a flexible economy demands fast
product development and market research.
a.
10 to 20
b.
30 to 35
c.
40 to 50
d.
80 to 90
ANSWER:
d
43. According to the textbook, today's flexible media system, in which new products are
constantly rushed to the marketplace, favors
a.
workers who belong to labor unions.
b.
individual entrepreneurs who can tailor a unique media product to meet a niche
market.
c.
large companies that can easily absorb losses incurred from failed products.
d.
government-subsidized companies that don't have to be concerned with making a
profit.
ANSWER:
c
44. Which statement best reflects the progress of U.S. labor unions over the last seventy years?
a.
They have experienced steady growth and now represent 35 percent of workers.
b.
After being painted as "socialist," they saw their enrollment suffer badly through the
1940s, 1950s, and 1960s, but they have rebounded strongly in the last thirty years.
c.
Enrollment seems to rise and fall each decade, but with an overall peak since the turn
of the twenty-first century.
d.
They grew steadily following World War II; peaked in the 1950s, when about a third
of Americans belonged to a union; then watched their numbers dwindle as more
manufacturing jobs moved overseas.
ANSWER:
d
45. According to the textbook, the term wage gap refers to
a.
the growing difference in pay based on gender.
b.
the downsizing of traditional newsrooms, with fewer reporters earning much higher
salaries.
c.
the rapidly growing difference in compensation between average wage earners and
top corporate executives.
d.
the gap between union salaries in the 1950s and the 2000s.
ANSWER:
c
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46. To understand why our society hasn't (until recently) participated in much public discussion
about wealth disparity and salary gaps, it is helpful to understand the concept of
a.
downsizing.
b.
status quo.
c.
hegemony.
d.
storytelling.
ANSWER:
c
47. The acceptance of the dominant values in a culture by those who are subordinate to those
who hold economic power describes
a.
consolidation.
b.
democracy.
c.
hegemony.
d.
synergy
ANSWER:
c
48. Which of the following is NOT a statement that describes the modern concept of hegemony?
a.
Hegemony is a good tool for encouraging conversation and debate.
b.
Hegemony's qualities are often defined or reinforced by narratives, or stories, told in
various media forms, including books, movies, and television.
c.
Hegemony tends to portray the social, economic, and political status quo as normal
and natural ways to see the world.
d.
Hegemony tends to repel self-scrutiny or critical examination.
ANSWER:
a
49. The significant trends in major mainstream media economics today are
a.
community ownership and civic action.
b.
specialization and synergy.
c.
partisanship and deference.
d.
national ownership and community action.
ANSWER:
b
50. The concept of synergy can best be described as
a.
the power of a new media development as it displaces old, less technologically
advanced media.
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b.
several media subsidiaries working under one corporate umbrella to promote different
versions of a media product.
c.
the development of shopping-mall bookstores to boost book sales.
d.
the development of more multimediated ways to distribute books.
ANSWER:
b
51. When a company uses its concert promotion department to put on a show, then advertises the
concert on the company's billboards, gives away free tickets on radio stations owned by that
company, and advertises on the company's television stations, this is an example of
a.
consumer control.
b.
the global marketplace.
c.
synergy.
d.
deregulation.
ANSWER:
c
52. Magazines like J-14 and AARP The Magazine, which target a certain age group, represent a
form of
a.
specialization.
b.
globalization.
c.
partisanship.
d.
ageism.
ANSWER:
a
53. In the 1950s, Disney was marked by
a.
legal trouble.
b.
corporate diversification.
c.
global expansion.
d.
economic turmoil.
ANSWER:
b
54. Which of the following is an example of synergy by Disney?
a.
creating a movie series from its popular theme-park ride Pirates of the Caribbean
b.
merging with Pixar in 2006
c.
starting Buena Vista in 1953
d.
hiring Michael Eisner to lead a new management team in 1984
ANSWER:
a
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55. Disney expanded its global reach by
a.
purchasing ABC.
b.
opening a theme park in California.
c.
merging with Pixar.
d.
opening Tokyo Disney Resort and Disneyland Paris.
ANSWER:
d
56. In 2006, Disney CEO Robert Iger merged the company with
a.
Pixar.
b.
ABC.
c.
CBS.
d.
Viacom.
ANSWER:
a
57. Which of the following is true about the globalization of media?
a.
It's more difficult for American media to reach other parts of the world.
b.
Globalization allows foreign companies to have more control over the media that
Americans consume.
c.
Globalization has prevented U.S. TV channels from establishing a foothold in other
countries.
d.
Globalization allows companies to recoup losses in the United States with sales
overseas.
ANSWER:
d
58. All five digital media conglomerates are weak in the area of
a.
e-commerce.
b.
search consoles.
c.
hardware devices.
d.
media narratives.
ANSWER:
d
59. Of the new digital media conglomerates, which one has a main strength of search
advertising?
a.
Google
b.
Facebook
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c.
Apple
d.
Disney
ANSWER:
a
60. Which of the following companies owns YouTube?
a.
Viacom
b.
General Electric
c.
Google
d.
Disney
ANSWER:
c
61. The ______ merger is considered the most disastrous media merger failure ever.
a.
Universal Music Group and EMI
b.
Sirius and XM
c.
Disney and ABC
d.
AOL and Time Warner
ANSWER:
d
62. How might diversification be used to skirt antitrust laws?
a.
Employing minorities tends to make regulators happy and reluctant to target
companies.
b.
It gets local communities to issue licensed monopolies, such as is the case with many
local cable companies that are often the only cable company allowed to operate in a
local community.
c.
By buying up lots of different media products, a company can avoid the appearance of
monopolizing any one product, yet still be large enough that it only really competes
with a handful of other similar companies.
d.
A company avoids U.S. antitrust laws by buying up media companies around the
world.
ANSWER:
c
63. Our society has been reluctant to debate the inequalities inherent in mass media ownership
and has gradually collapsed the critical distinctions between
a.
capitalism and the free market.
b.
democracy and free speech.
c.
space and time.
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d.
capitalism and democracy.
ANSWER:
d
64. In our market economy, citizens have ______, but not very much control over the types of
products they might actually want.
a.
consumer choice
b.
enormous power
c.
freedom from thought
d.
great responsibility
ANSWER:
a
65. Cultural imperialism is
a.
a concept in journalism ethics that argues that journalists must know the culture they
are reporting on.
b.
the theory that globalization is good for media, since it makes media more culturally
diverse.
c.
the idea that large and powerful countries can dominate and even change the culture
of smaller countries through media.
d.
the argument that people are more affected by the media that is familiar to them.
ANSWER:
c
66. A term that describes what happens when one society exports an overwhelming amount of
media images that strongly influence everything from fashion styles to views of morality is
a.
cultural imperialism.
b.
oligopoly.
c.
consumer choice.
d.
narrative storytelling.
ANSWER:
a
67. America has been accused of cultural imperialism for which of the following reasons?
a.
U.S. corporations own most of the world's mass media.
b.
The Pentagon dictates foreign policy in most foreign countries.
c.
American styles in fashion, food, and entertainment dominate the global markets.
d.
Baywatch was more popular overseas than it was in the United States.
ANSWER:
c
Name:
Class:
Date:
Chapter 13: Essay
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Page 20
68. The exportation of U.S. entertainment media is sometimes viewed as ______ because it
discourages the development of original local products and value systems.
a.
criminal
b.
cultural dumping
c.
monopolistic
d.
consumer choice
ANSWER:
b
69. What was the impact/outcome of a 2010 Supreme Court decision (in a five-to-four vote)
regarding campaign financing?
a.
Stricter limits were placed on the amount of money businesses could donate to
political candidates and causes.
b.
No business or corporation is allowed to influence politicians with campaign cash.
c.
Only small businesses and unions can donate money to campaigns.
d.
The government cannot interfere in campaign spending by corporations.
ANSWER:
d
70. One key paradox of the Information Age is that for economic discussions to be meaningful
and democratic, they must be carried out in
a.
radio talk shows.
b.
the popular media as well as in educational settings.
c.
community-action groups.
d.
American homes.
ANSWER:
b
