Television Industry OverviewWhat the TV industry does, it does for money. In 2003 and 2004, TV networks and their associated conglomerates made billions of dollars. Yet, like Coca-Cola and Doritos, what these huge corporations have to offer, in terms of television products, is certainly not essential for human survival on the planet. Nobody will literally die if they don't watch Monday Night Football or American Idol. Yet, through a cultivation of resources, the huge media corporations have woven their TV products into the fabric of society. In his book, "The New Media Monopoly" (2004 edition), author Ben Bagdikian explains that "though today's media reach more Americans than ever before, they are controlled by the smallest number of owners than ever before. In 1983, there were fifty dominant media corporations, today there are five. These five corporations decide what most citizens will -- or will not -- learn." Bagdikian calls today's media landscape a "monopoly" -- one seller of a product, rather than an oligopoly -- a few sellers of a product. Though oligopoly seems like the more natural description, Bagdikian argues that the major media corporations all work together to consolidate control of the industry and profit streams. He equates the current media landscape to OPEC's monopolistic control of oil production. For example, profits from the A&E Television Networks are shared by The Hearst Corporation, The Walt Disney Company and General Electric. So whether one calls media ownership a monopoly or oligopoly, both are economic theories of what is known as imperfect competition. The PricewaterhouseCoopers business firm estimates that the global TV network market rose in 2003 to $130.7 billion. In the company's Global Entertainment and Media Outlook: 2004-2008 report, it predicts that by 2008, the industry will reach $174 billion. The fastest growing market is, not surprisingly, the United States with an annual growth rate of 7.5%. The company estimates that U.S. broadcast and cable TV networks made $47 billion in 2003 and in 2004 revenue will grow to $52.3 billion. The overall entertainment and media industry, according to
PricewaterhouseCoopers, will expand from $1.2 trillion in 2003 to
$1.7 trillion by 2008. |
The Big Four in Broadcast |
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CBS Television
Network Corporate Owner: Viacom
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Corporate Owners: NBC Universal is 80%-owned by General Electric, with 20% controlled by Vivendi Universal.
Conglomerate Highlights: Telemundo, Paxson, Bravo, CNBC, MSNBC (50% ownership with Microsoft Corp.), mun2, TRIO, Sci Fi Channel, USA Network, A&E Channel, and Universal Studios. |
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Conglomerate Highlights: FX Network, 20th Century Fox Entertainment, TV Guide, Fox Searchlight Pictures, New York Post, The Times of London, Harper Collins Publications, The Sun (London), Speed Channel, FoxTel Digital, The Australian newspaper. |
ABC Inc.
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Vivendi Universal
Conglomerate
Highlights: Walt Disneyland and Disney World, Miramax, Touchstone
Television, Radio Disney (more than 70 stations), Lifetime, Disney
Channel, ESPN (see below), SOAPnet, Buena Vista Television
Corporate Owner:
