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Media Conglomerates Control Everything
By Eric de Fontenay (Founder & Publisher)
(more articles from this author)
2003-02-21
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In-Stat/MDR, a tech market research firm, provided additional evidence of established media stakeholders' share of digital media and entertainment revenues. AOL Time-Warner leads the pack, followed about equally by Disney, Viacom, and Vivendi Universal, themselves trailed by Sony, News Corporation, Cox Enterprises, and Bertelsmann. Rounding out the bottom of the list was Lagardere SCA, GE/NBC, Grupo Televisa, S.A., and Liberty Media.

Nothing very surprising, it simply proves the age-old adage that size does matter. Economies of scale in production, distribution, human & financial resources represents "the driving force for these very large companies" and key to "their ability to compete in a global economy."

Compete with whom one might ask? Emerging local/regional talent empowered by digital technology? Not likely according to the report which finds that "in nearly every country throughout the world, local creative content companies are being purchased, or obtaining equity investments from these very large Media Mega Companies."

Nor is the current respite of mega buy-outs and mergers likely to last as these conglomerates eventually attempt to plug holes in their current holdings and operations to better compete amongst themselves (even within themselves according to stories on how AOL/TW's high-speed cable division Road Runner is sapping subscribers from AOL's online division).

While FCC Chairman Michael Powell is correct to state that there has been a significant increase in the number of new and alternative media platforms competing with old media, this provides no rational for loosening media ownership rules if they are overwhelming controlled by those same old media conglomerates.

Related News from Mi2N:
» 16 Companies Are Driving Worldwide Digital Media And Entertainment


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