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MASS MEDIA

AND EVERYDAY LIFE 01

Zoran Milich/Reuters

Today’s mobile media, such as smartphones,

have become essential elements of everyday life.
On January 1, 2015, a group in New York’s Times
Square uses their new iPhone to take a “selfie” to
mark the occasion.

Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
2 PART ONE THE MASS MEDIA INDUSTRIES

What’s Ahead?
■ Mass Media Are ■ Mass Media Are Profit- ■ Media Take Advantage
Everywhere You Are Centered Businesses of Digital Delivery
■ Mass Communication ■ Convergence Dominates ■ How Today’s Communications
Becomes Wireless the Media Business Network Operates
■ How the Communication ■ Why Media Properties ■ Mass Media Both Reflect
Process Works Converge and Affect Politics,
Society and Culture
■ What Are the Mass ■ Advertisers and Consumers
Media Industries? Pay the Bills ■ Why You Should Understand
Mass Media and Everyday Life
■ Three Key Concepts ■ Technology Changes
to Remember Mass Media Delivery
and Consumption

“(The Internet of Things) is going to create disruption and opportunity

in every imaginable field, and it’s entirely up to you whether you’re
going to be one of the disrupted or the disruptors.”
—DANIEL BURRUS, CEO AND FOUNDER OF BURRUS RESEARCH, TECHNOLOGY FORECASTER AND INNOVATION EXPERT

You are interactive—connected to mass media than three-fourths of their waking hours. (See Illustra-
in a more personal way than ever before. At the tion 1.1, p. 4.) Some form of mass media touches you
center of your personal, interactive connections today every day—economically, socially and politically. Mass
is the Internet, where mass media and social media are media can affect the way you vote and the way you spend
waiting to bombard you every waking hour. When was the your money. Sometimes mass media influence the way
last time you spent 24 hours without the media? From the you eat, talk, work, study and relax. This is the impact
moment you wake up until the time you go to sleep, mass of mass media on you individually and, collectively, on
media and social media overwhelm you with news and American society.
information, keep you entertained and—most importantly The media’s wide-ranging global presence means
for the mass media industries—sell you products. today’s mass media capture more time and attention
than ever. The media affect almost all aspects of the
way people live, and the media earn unprecedented
Mass Media Are Everywhere amounts of money for delivering information and
You Are entertainment.
Today’s American society has inherited the wisdom,
Online news offers national and local news with constant mistakes, creativity and vision of the people who work in
updates and alerts for breaking stories. Radio news gives the mass media industries and the society that regulates
you traffic reports on the freeway. Magazines describe and consumes what the mass media produce. Consider
new video games, show you the latest fashion trends and these situations:
help plan your next hiking trip.
Should you power up your Kindle to read the lat- ▸ You are an executive with city government working
est romance novel or stream a video on your iPad from with a limited budget, trying to expand access to the
Netflix? Maybe you should grab your iPhone to check local public library. How can you use technology to
Facebook or use your CBS app to catch up on the latest help maximize the library’s reach? (See Chapter 2.)
episode of your favorite TV sitcom. Perhaps you should ▸ A friend texts you a link to new song from your favor-
check Snapchat for the latest ten-second photo message ite recording artist, which you download and use
from your friends or use Spotify to find the newest release on your Web site. The music works great, but the
from your favorite music artist. artist’s licensing company sues you because you
According to industry estimates, adults spend an aver- haven’t paid to use the song. Will you be prosecuted?
age of 12 1/2 hours each day using mass media—more (See Chapter 5.)

TimeFrame Three Information Communications

Revolutions Form the Basis for
3500 B.C.–Today Today’s Digital Media

 3500 B.C. The first known pictographs are carved in stone.

2500 B.C. The Egyptians invent papyrus.

1000 B.C. The First Information Communications Revolution: Phonetic Writing
200 B.C. The Greeks perfect parchment.
A.D. 100 The Chinese invent paper.
1300 Europeans start to use paper.

1445 The Chinese invent the copper press.

DeAgostini/A.Dagliorti/Getty Images

1455 The Second Information Communications Revolution: Movable Type

1640 The first American book is published.
1690 The first American newspaper is published.

1741 The first American magazine is published.

1877 Thomas Edison first demonstrates the phonograph.
1899 Guglielmo Marconi first uses his wireless radio.

1927 The Jazz Singer, the first feature-length motion picture with sound,
premieres in New York City.

 1939 NBC debuts TV at the New York World’s Fair. On display are 5-inch and
9-inch television sets priced from $199.50 to $600.
Archive Photos/Getty Images

1951 The Third Information Communications Revolution: Digital Computers

That Can Process, Store and Retrieve Information

1980 The Federal Communications Commission begins to deregulate the

broadcast media.

1989 Tim Berners-Lee develops the first Internet Web browser.

2007 Amazon introduces the Kindle e-reader. Apple introduces the iPhone.
Andrew Harrer/Bloomberg/Getty Images

2008 Internet advertising income reaches $23 billion annually, more than twice
what it was in the year 2000.

2010 Apple introduces the iPad tablet.

2013 Wearable technology, including the Smartwatch, debuts.

2014 Facebook has 1.4 billion users. Twitter reaches 300 million. Snapchat
boasts 100 million.

2015 Internet advertising income reaches $51 billion annually.

 TODAY Wireless digital technology is the standard for all mass media.
Mass media are interactive and mobile.

IMPACT
Society
ILLUSTRATION 1.1

Average Time
Total
Americans Spend minutes
Using Mass Media in a day 1,440
Each Day Minutes
On average, Americans
spend more waking time
each day with the mass
media than without them.
Using media
748
52% Minutes

Sleeping
475
33% Minutes

Not using

Advertising Age Marketing Fact Pack

media
216
2015, “Time Spent Using Media,”
December 29, 2014, p. 17. 15% Minutes

▸ You work for an advertising agency that wants to use so the family could listen to the programs. In the 1950s,
Twitter to create enthusiasm for a new product. What you had to add an antenna to your roof so you could watch
would you recommend as the best way to be most suc- your new TV set, which was connected at the wall to an
cessful on social media? (See Chapter 10.) electrical outlet and the antenna. To be wired was to be
connected. In the 1990s, you still needed an electrical
▸ You are an anchor for a major news organization. Dur-
outlet at home and at work to be connected to your com-
ing several public appearances you exaggerate the
danger you faced reporting from a war zone. How does puter, and the furniture in your family room at home was
your company respond when it learns what you’ve arranged to accommodate the cable, satellite and/or tele-
done? (See Chapter 15.) phone connection for your television set.
Today’s technology makes mass media wireless
People who work in the media industries, people who (Wi-Fi, an abbreviation for Wireless Fidelity). New tech-
own media businesses, people who consume media and nologies give you access to any mass media in almost any
people who regulate what the media offer face decisions location without wires. You can:
like these every day. The choices they make continue to
shape the future of the American mass media. ▸ Check Twitter for public officials’ comments on
news events.

Mass Communication
Becomes Wireless Wi-Fi An abbreviation for Wireless Fidelity, which
In the 1930s, for you to listen to the radio, your house makes it possible to transmit Internet data wirelessly
to any compatible device.
needed electricity. You plugged your radio into an elec-
trical outlet, with the furniture positioned near the radio

▸ Stream a first-run movie or a classic TV sitcom and eventually this communications system will be acces-
or download new and classic books—even your sible and affordable everywhere in the world.
textbook—to a mobile device you carry with you.
▸ Play the newest video game on your smartphone How the Communication
with three people you’ve never met.
Process Works
▸ Check your family ancestry to create an online fam-
To understand mass media in the digital age, first it is
ily tree, leading you to connect with overseas relatives
important to understand the process of communication.
you didn’t know existed.
Communication is the act of sending messages, ideas and
▸ Stop on the street corner in a new town, use your opinions from one person to another. Writing and talking
smartphone to find the closest Italian restaurant, then to each other are only two ways human beings communi-
order pizza ahead on the restaurant’s Web site so it’s cate. We also communicate when we gesture, move our
ready when you arrive there. bodies or roll our eyes.
Three ways to describe how people communicate are
You and your mass media are totally mobile. Today’s
digital environment is an intricate, webbed network of ▸ Intrapersonal communication
many different types of communications systems that
▸ Interpersonal communication
connects virtually every home, school, library and busi-
ness in the United States and around the world. Most ▸ Mass communication
of the systems in this digital environment are invisible.
Each form of communication involves different num-
Electronic signals have replaced wires, freeing people
bers of people in specific ways. If you are in a grocery
to stay connected no matter where or when they want to
store and you silently debate with yourself whether to
communicate.
buy an apple or a package of double-chunk chocolate chip
This global communications system uses broadcast,
cookies, you are using what scholars call intrapersonal
telephone, satellite, cable and electronic technologies,
communication—communication within one person.
To communicate with each other, people rely on their
five senses—sight, hearing, touch, smell and taste. This
direct sharing of experience between two people is called
interpersonal communication. Mass communication
is communication from one person or group of persons
through a transmitting device (a medium) to large audi-
ences or markets.
In Media/Impact you will study mass communication.
To describe the process of mass communication, schol-
ars use a communications model. This includes six key
terms: sender, message, receiver, channel, feedback and
noise. (See Illustration 1.2, p. 6.)
Pretend you’re standing directly in front of someone
and say, “I like your Detroit Tigers hat.” In this simple
communication, you are the sender, the message is
“I like your Detroit Tigers hat” and the person in front of
you is the receiver (or audience). This example of inter-
personal communication involves the sender, the mes-
sage and the receiver.
Jason LaVeris/FilmMagic/Getty Images

In mass communication, the sender (or source) puts the

message on what is called a channel. The sender (source)
could be a local business, for example. The channel (or

Mass Communication Communication from one

On February 8, 2015, British singer Sam Smith collected four person or group of persons through a transmitting
Grammys. If a friend texts you a link to Smith’s latest hit song, device (a medium) to large audiences or markets.
and you use it on your Web site without permission, can you
be prosecuted for violating music copyright?

IMPACT
Society
ILLUSTRATION 1.2

Elements of Mass
Communication Noise Noise
The process of mass
Message Chan
communication works nel
um) (me
like this: A sender edi diu
l (m m)
e
(source) puts a message nn
on a channel (medium) ha
C

that delivers the Sender (source) Receiver (consumer)

Company
message to the receiver.
Feedback occurs when
the receiver responds, OPEN!

and that response

Feedback
changes subsequent
messages from the Survey
source. Noise (such yes
as static or a dropped no
connection) can interrupt
or change the message © Cengage Learning 2015.
during transmission.

medium) delivers the message (electronic signal). The 1. A message is sent out on some form of mass com-
channel could be the cable, satellite or Internet provider. munication system (such as the Internet, print or
A medium is the means by which a message reaches an broadcast).
audience. (The plural of the word medium is media; the
2. The message is delivered rapidly.
term media refers to more than one medium.) Your tele-
vision set, computer or mobile device is the medium that 3. The message reaches large groups of different kinds of
delivers the message simultaneously to you and many people simultaneously or within a short period of time.
other people.
So a telephone conversation between two people does not
The receiver is the place where the message arrives,
qualify as mass communication, but a message from the
such as you, the consumer. Noise is any distortion (such
president of the United States, broadcast simultaneously
as static or a briefly interrupted signal) that interferes
by all of the television networks and streamed live via the
with clear communication. Feedback occurs when the
Internet, would qualify because mass media deliver mes-
receiver processes the message and sends a response
sages to large numbers of people at once.
(such as a survey) back to the sender (source).
As a very simple example, say your satellite com-
pany (sender/source) sends an ad for a new movie
release (the message) through the signal (channel)
into your TV set (medium). If you (the receiver) use the Medium The means by which a message reaches
the audience. Also, the singular form of the word
controls on your TV remote to stream the movie, the
media.
order you place (feedback) ultimately will bring you a
movie to watch. This entire loop between sender and Media Plural of the word medium.
receiver, and the resulting response (feedback) of the Noise Distortion (such as static) that interferes with
clear communication.
receiver to the sender, describes the process of mass
communication. Feedback A response sent back to the sender from
the person who receives the communication.
Using a general definition, mass communication today
shares three characteristics:

Books
Publishers issue about 200,000 titles a year in the
United States, although many of these are reprints
and new editions of old titles. Retail bookstores in
the United States account for one-third of all money
earned from book sales, but the majority of books
are sold online. The rest of book publishing income
comes from books that are sold in college stores,
through book clubs, to libraries and to school dis-
tricts for use in elementary and high schools.

Nicolas Asfouri/AFP/Getty Images

U.S. book publishing, the country’s oldest
media industry, has been revived recently by the
introduction of e-books (downloaded copies of tra-
ditional books), transforming the book publishing
business from print-only sales to print-and-digital
online sales.
Wireless technology means you can carry your media with you and
send and receive messages globally. In Queenstown, Singapore,
people use their cell phones to try to get a picture of Britain’s Prince Newspapers
William and his wife, Catherine, the Duchess of Cambridge, during Newspapers today are struggling to make a
their visit to the country on September 12, 2012.
profit. Advertising revenues in the last ten years
have plummeted, primarily because newspaper readers
have migrated to other sources for their news. Between
2008 and 2010, eight major newspaper chains declared
What Are the Mass Media bankruptcy, and many laid off reporters and cut salaries.
Industries? Advertising makes up more than two-thirds of the
The term mass media industries describes eight printed space in daily newspapers. Most newspapers
types of mass media businesses. The word industries, have launched Internet editions to try to expand their
when used to describe the media business, emphasizes reach, and a few newspapers have converted to online-
the primary goal of mass media in America—to generate only publication, but increased Internet ad revenue has
money (see Illustration 1.3, p. 8). not compensated for advertising declines in the printed
The eight mass media industries are product.

▸ Books
Magazines
▸ Newspapers
According to the Association of Magazine Media,
▸ Magazines 75 percent of magazine readers still prefer the printed
▸ Recordings magazine, although 16 percent read their magazines on
a computer and 9 percent read the magazine on a tablet
▸ Radio or smartphone. To maintain profits, magazines are rais-
▸ Movies ing their subscription and single-copy prices and charg-
ing for online access.
▸ Television Many magazines have launched Internet editions,
▸ The Internet and a few magazines (such as Slate) are published exclu-
sively online. Still, magazine subscriptions and news-
Books, newspapers and magazines were America’s
stand sales are down. Magazine income is expected
only mass media for 250 years after the first American
to decline over the next decade, primarily because a
book was published in 1640. The first half of the 20th cen-
tury brought 4 new types of media—recordings, radio,
movies and TV—in fewer than 50 years. The late-20th-
century addition to the media mix, of course, is the Inter- Mass Media Industries Eight types of media
net. To understand how each medium fits in the mass businesses: books, newspapers, magazines,
media industries today, you can start by examining the recordings, radio, movies, television and the Internet.
individual characteristics of each media business.

IMPACT
Money
ILLUSTRATION 1.3
8% 6%
U.S. Mass Media Radio Recordings
Industries Annual 6% 14% 6%
Income 1987–Today 27
TV
% Recordings
Movies
Radio**
This historical graphic 4% 20% 5%
TV*
shows how the distribution Movies Internet
of media industry income
11% ****
since 1987 has shifted
Books
7%
23%
from print media (books, 14% 30%
Newspapers Magazines
19%
Newspapers
Magazines
newspapers and magazines) Books
to television and the
Internet.
55% 49%
Print Industries Print Industries

1987 1999
10%
Internet****
21%
Movies**
5%
Radio******
3%
Recordings**
30 %
TV*
14%
Newspapers***

9%
7% Books*****
Magazines***
Broadcast, cable & satellite
Sources: U.S. Industrial Outlook 1987;
McCann-Erickson Insider’s Report
30% *
** Includes Internet downloads
1987; The Veronis, Suhler & Associates Print Industries *** Includes Internet editions
Communications Industry Forecast, **** Internet advertising revenue
1997–2001; Advertising Age Marketing
Fact Pack, December 29, 2014;
publishers.org; mpaa.org; naa.org;
Today *****
******
Includes e-book sales
Broadcast & satellite
adage.com; riaa.org; iab.org.

significant portion of magazine advertising revenue has Radio

migrated to the Internet. About 15,000 radio stations broadcast in the United
States, with fewer AM stations than FM. About 4,000
Recordings radio stations are public stations, most of them FM.
Recording industry revenue overall is declining. CDs The satellite radio service Sirius XM generates revenue
account for one-third of industry revenue, while digital through subscriptions, offering a variety of music and
downloads, subscriptions and streaming account for the program choices without commercials.
rest. Industry income has been declining sharply because As a result, broadcast radio revenue from advertising
new technologies allow consumers to share music over is declining because the price of a commercial is based
the Internet rather than pay for their music. Instead of on the size of the audience, which is getting smaller.
selling albums, as in the past, artists must rely on sales of To expand their audience, many traditional radio sta-
singles, which of course bring in less revenue. tions distribute their programs online. The Internet radio

services Pandora, Rhapsody and Spotify have also sto-

len younger listeners from traditional radio stations.

Movies
There are about 40,000 indoor movie screens in the
U.S., and, surprisingly, about 600 outdoor screens still

Tom Toro/The New Yorker Collection/Cartoon Bank.com

exist. The major and independent studios combined
make about 500 pictures a year. The industry is col-
lecting more money because of higher ticket prices,
but more people watch and stream movies at home
rather than go to theaters, so the number of movie
theaters is declining.
Fewer people are buying DVDs and instead are
getting movies through Redbox and streaming
them through services like Netflix. The increased
income to the U.S. movie industry has been primar-
ily from overseas movie sales and streaming. Overall
movie industry income began declining in 2005, and
that trend continued until 2012. Since then industry services, such as shopping and social networking, and a
income has stabilized. place for businesses to sell their products using advertis-
ing and product promotion.
Television
About 1,700 television stations operate in the U.S. One out of Three Key Concepts
four stations is a public station. Many stations are affiliated to Remember
with a major network—NBC, CBS, ABC or Fox—although
a few stations, called independents, are not affiliated with The mass media are key institutions in our society.
any network. More than 90 percent of the homes in the They affect our culture, our buying habits and our poli-
United States are wired for cable or satellite delivery. To tics. They are affected in turn by changes in our beliefs,
differentiate cable and satellite TV from over-the-air televi- tastes, interests and behavior. Three important concepts
sion, cable and satellite television services are now lumped can help to organize your thinking about mass media and
together in one category, called subscription television. their impact on American society:
TV network income is increasing while income to 1. The mass media are profit-centered businesses.
cable operators and satellite companies for subscription
2. Technological developments change the way mass
services has stabilized. Recently, the television networks
media are delivered and consumed.
have all invested heavily in subscription TV programming.
The nation’s largest cable operator is Comcast Corp. In 3. Mass media both reflect and affect politics, society
2014, Comcast bought Time Warner Cable. AT&T began and culture.
offering subscription television services through its
U-verse system in 2008, and in 2015 AT&T bought satel-
lite provider DirecTV. Total television industry revenue— Mass Media Are Profit-Centered
including cable, satellite and fiber delivery—continues to Businesses
grow steadily.
What you see, read and hear in the mass media may
tease, entertain, inform, persuade, provoke and even con-
The Internet
fuse you. But to understand the American mass media,
The newest media industry also is growing the fastest. the first concept to grasp is that the central force driv-
About 80 percent of all U.S. adults have Internet access, ing the media business in America is the desire to make
and the amount of money businesses spent for Internet money. American media are businesses, vast businesses.
advertising, which totaled $8 billion in 2000, is projected
to reach to $51 billion in 2015.
Internet media have become a new mass medium as Subscription Television A new term used to
well as an integrated delivery system for traditional print, describe consumer services delivered by cable and
audio, video and interactive services (such as streaming). satellite.
The Internet also offers access to many other consumer

called concentration of ownership, takes four differ-

ent forms: chains, broadcast networks, conglomerates
and vertical integration.
CHAINS. Benjamin Franklin established America’s first
newspaper chain in the 1700s, when he was publishing his
own newspaper, the Pennsylvania Gazette, as well as spon-

Kristy Sparow/Getty Images Entertainment/Getty Images

soring one-third of the cost of publishing the South Caro-
lina Gazette. (He also collected one-third of the South Caro-
lina Gazette’s profits.) William Randolph Hearst expanded
this tradition in the 1930s. At its peak, the Hearst newspa-
per chain accounted for nearly 14 percent of total national
daily newspaper sales and 25 percent of Sunday sales.
Today’s U.S. newspaper chain giant is Gannett Co., with 82
daily newspapers, including USA Today. The word chain is
used to describe a company that owns several newspapers.
BROADCAST NETWORKS. A broadcast network is
a collection of radio or television stations that offers pro-
American mass media are very popular overseas,
representing substantial income potential for U.S. media grams during designated program times. Unlike news-
companies. On February 15, 2015, the SpongeBob paper ownership (which is not regulated by the govern-
SquarePants movie premiered at the Cinema Gaumont ment), the Federal Communications Commission (FCC)
Capucines in Paris, France. regulates broadcast station ownership and operations. The
FCC is a government regulatory body whose members are
The products of these businesses are information and appointed by the president.
entertainment that depend on attracting an audience of The four major TV networks are ABC (American Broad-
media consumers to generate income. Of course, other casting Co.), NBC (National Broadcasting Co.), CBS (orig-
motives shape the media in America: the desire to ful- inally the Columbia Broadcasting System) and Fox. NBC,
fill the public’s need for information, to influence the the oldest network, was founded in the 1920s. NBC and
country’s governance, to disseminate the country’s cul- the two other original networks (CBS and ABC) first were
ture, to offer entertainment and to provide an outlet for established to deliver radio programming across the coun-
artistic expression. But American media are, above all, try and continued the network concept when television
profit-centered. was invented. Fox is the youngest major network, founded
To understand the mass media industries, it is essential in 1986, and delivers only television programming.
to understand who owns these important channels of com- Broadcast networks can have as many affiliates as
munication. In the United States, all media are privately they want. Affiliates are stations that use network pro-
owned except the Public Broadcasting Service (PBS) and gramming but are owned by companies other than the net-
National Public Radio (NPR), which survive on government works. No network, however, can have two affiliates in the
support, private donations and corporate sponsorship. The same geographic broadcast area, due to government regu-
annual budget for all of public broadcasting (PBS and NPR lation of network affiliation.
combined) is less than 2 percent of the amount advertisers In 2006, the TV networks announced they would offer
pay every year to support America’s commercial media. shows on demand. Apple and Disney agreed to make
In some media industries, the same number of compa- series programming available through video downloads.
nies control ownership today as in the 1950s. There are One month later, CBS and NBC announced they planned
five major movie studios today, for example, compared to to offer series programs on demand through Comcast
the same number of major studios in the 1940s. The num-
ber of broadcast stations and the number of magazines
has increased since the 1940s, but the number of newspa- Concentration of Ownership The current
pers and recording companies has declined. trend of large companies buying smaller companies
Overall, American media ownership has been con- so that fewer companies own more types of media
businesses.
tracting rather than expanding. This is because large
companies are buying small companies. The trend is FCC Federal Communications Commission.
for media companies to cluster together into big groups, Affiliates Stations that use network programming
which means that a small number of companies now but are owned by companies other than the networks.
control many aspects of the media business. This trend,

Gannett is a newspaper chain that is also a vertically inte-

grated company.
The media company Viacom owns MTV, Comedy
Central, Nickelodeon and Black Entertainment Tele-
vision (BET). The Walt Disney Co. owns Disneyland
amusement parks, Walt Disney Motion Pictures Group,
the ABC TV network, the ESPN cable network and
ESPN: The Magazine. Time Warner owns Warner Bros.
Pictures, HBO, Turner Broadcasting, CNN, TNT, TBS
and the Cartoon Network.

Convergence Dominates the

Media Business
To describe the financial status of today’s media indus-
tries is to talk about intense competition. Media compa-
nies are buying and selling each other in unprecedented
numbers and forming media groups to position them-
CBS Photo Archive/Getty Images

selves in the marketplace to maintain and increase

their income. Since 1986, all three original TV networks
(NBC, CBS and ABC) have been sold to new owners—
sometimes more than once—making each of the three
original networks smaller parts of giant publicly owned
media companies.
CBS is one of the original U.S. broadcast networks and Fox Broadcasting Co. is part of a larger international
earned an early reputation as the nation’s best TV news media company, Rupert Murdoch’s News Corp., which
operation, beginning in the 1960s. In 1968, CBS news anchor
also owns The Wall Street Journal, TV stations, maga-
Walter Cronkite reported on the Tet Offensive in Vietnam.
zines and Twentieth Century Fox Film Corp. In 2013, the
leading cable operator Comcast acquired full ownership
and DirecTV. Today broadcast network programming is of NBC Universal, with its cable channels, theme parks
available by streaming on all mobile media, such as smart- and the NBC broadcast network. Since shares in most
phones and tablets. To generate revenue, the broadcast net- of today’s media companies are publicly traded on the
works today take the programming to their viewers instead nation’s stock exchanges, they face heavy pressure to
of waiting for viewers to come to them. deliver hefty profits to their shareholders.
CONGLOMERATES. When you watch a Sony Pic- Media companies today also are driven by media
tures Entertainment film or listen to Sony music, you convergence. The word convergence describes two
might not realize that Sony also owns Micronics, a medi- developments taking place simultaneously. First, it
cal diagnostics company. Sony is a conglomerate— means the melding of the communications, computer and
a company that owns media companies (Sony Pictures
Entertainment, Sony Music Entertainment and Sony Elec-
tronics) as well as other businesses that are unrelated to the
Conglomerates Companies that own media
media business.
companies as well as businesses that are unrelated to
VERTICAL INTEGRATION. Another widespread the media business.
trend among today’s media companies is vertical
Vertical Integration An attempt by one company
integration—a business model in which one company to simultaneously control several related aspects of
controls several related aspects of the media business at the media business.
once, with each part of the company helping the others. Convergence The melding of the communications,
Many media companies own more than one type of media computer and electronics industries. Also used to
property: newspapers, magazines, radio and TV stations, describe the economic alignment of the various media
for example. companies with each other to take advantage of
technological advancements.
Gannett, which owns the nation’s largest chain of
newspapers, also owns television and radio stations, so

broadcast company to own only five TV stations, five AM

radio stations and five FM radio stations. Companies also
were required to keep a station for three years before the
owners could sell it.
The post-1980 FCC eliminated the three-year rule
and raised the number of broadcast holdings allowed for
one owner. Today, there are very few FCC restrictions on
broadcast media ownership.

Kiyoshi Ota/Bloomberg/Getty Images

Why Media Properties Converge
Ownership turnover is highest in the newspaper and
broadcast industries. Six factors have affected the eco-
nomic alignment of these properties:

1. Media properties can be attractive investments. Many

The Walt Disney Company is a vertically integrated media broadcast companies have historically earned profits
corporation—a company that owns several different types of
of 10 percent or more a year, for example, which is
media businesses, with each part of the company contributing
to the others. On April 15, 2013, Mickey, Minnie and Goofy about double the average amount that a U.S. manufac-
helped celebrate the 30th anniversary of Tokyo Disneyland. turing company earns.

2. Newspapers and broadcast stations are scarce com-

electronics industries because of advances in digital tech- modities. Because the number of newspapers has
nology. Second, convergence also means the economic been declining and the government regulates the
alignment of different types of media companies with number of broadcast stations that are allowed to oper-
each other so they can offer the variety of services that ate, a limited number of established media outlets are
technical advancements demand. available. As with all limited commodities, this makes
The people who manage U.S. media companies today them attractive investments.
want to make money. As in all industries, there are people
who want to make money quickly and people who take 3. Newspapers and broadcast stations have moved past
the long-term view about profits, but certainly none of their early cycle of family ownership. If the heirs to
them wants to lose money. One way to expand a company the founders of a family business are not interested
to take advantage of technological and economic conver- in running the company, the only way for them to col-
gence is to acquire an already established business that’s lect their inheritance is to sell the business, and the
successful. Such media acquisitions have skyrocketed for only companies with enough money to buy individual
two reasons—public ownership and deregulation. media businesses are large corporations and invest-
PUBLIC OWNERSHIP. Most media companies today ment companies.
are publicly traded, which means their stock is sold on one 4. Newspapers and broadcast stations are easier busi-
of the nation’s stock exchanges. This makes acquisitions nesses to buy than to create. Because these busi-
relatively easy. A media company that wants to buy another nesses require huge investments in equipment and
publicly owned company can buy that company’s stock people, they are expensive to start up. In broadcast-
when the stock becomes available. ing, the major factor that encouraged ownership
The open availability of stock in these public com- changes, beginning in the 1980s, was deregulation.
panies means any company or individual with enough This allowed investors who had never been in the
money can invest in the American media industries, broadcast business before to enter the industry, using
which is exactly how Australian Rupert Murdoch, owner bank loans to pay for most of their investment. Some
of Fox Broadcasting, joined the U.S. media business and new owners of broadcast media companies see these
was able to accumulate so many media companies in such
a short time.
DEREGULATION. Beginning in 1980, the Federal
Communications Commission gradually deregulated the Deregulation Government action that reduces
broadcast media. Deregulation means the FCC with- government restrictions on the business operations
of an industry.
drew many regulatory restrictions on broadcast media
ownership. Before 1980, for example, the FCC allowed a

companies the way they would look at any business— Advertisers and Consumers
hoping to invest the minimum amount necessary.
They hold onto the property until the market is favor-
Pay the Bills
able, planning to sell at a huge profit. Most of the income the American mass media industries
collect comes from advertising. Advertising directly
5. In the 1990s, the introduction of new technologies,
supports newspapers, radio and television. Subscribers
especially the Internet, changed the economics of
actually pay only a small part of the cost of producing a
all the media industries. Each industry had to adapt
newspaper. Advertisers pay the biggest portion. Maga-
to the Internet quickly, and the fastest way to gain
zines receive more than half their income from advertis-
Internet expertise was to buy a company or to invest
ing and the other portion from subscriptions. Income for
in a company that already had created an Internet
movies, recordings and books, of course, comes primar-
presence or a successful Internet product.
ily from direct purchases and ticket sales.
6. The economic downturn that began in 2007 hit the This means that companies that want to sell you prod-
newspaper business especially hard. Heavily depen- ucts pay for most of the information and entertainment
dent on real estate advertising and classifieds and you receive from the Internet, TV, radio, newspapers and
challenged by the dynamics of the Internet, many magazines. You support the media industries indirectly
publicly owned newspaper companies began losing by buying the products that advertisers sell. General
money at an unprecedented rate. This fall in profits Motors Corp. and AT&T each spend more than $3 billion
drove their stock prices to new lows, which made them a year on advertising. Multiply the spending for all this
vulnerable to takeovers and buyouts as the companies advertising for all media, and you can understand how
struggled to survive. Several newspaper companies, easily American media industries accumulate $200 bil-
such as the Tribune Company (which publishes the lion in annual revenue.
Chicago Tribune and the Los Angeles Times), filed for You also pay for the media directly when you buy a book
bankruptcy protection, and in 2013 the investors who or a video game or go to a movie. This money buys equip-
owned the Tribune Company put it up for sale. ment, underwrites company research and expansion, and
pays stock dividends. Advertisers and consumers are
Supporters of concentrated ownership and conver-
the financial foundation for American media industries
gence say a large company can offer advantages that
because different audiences provide a variety of markets
a small company could never afford—training for the
for consumer products.
employees, higher wages and better working conditions.
The major arguments against the concentration and
convergence of group ownership are that concentration Technology Changes Mass
of so much power limits the diversity of opinion and the Media Delivery and Consumption
quality of ideas available to the public and reduces what
scholars call message pluralism. More than 40 years The channels of communication have changed dramati-
ago, Ben H. Bagdikian, dean emeritus, Graduate School cally over the centuries, but the idea that a society will
of Journalism at the University of California, Berkeley, pay to stay informed and entertained is not new. In Impe-
described how the loss of message pluralism can affect rial Rome, people who wanted to find out what was going
every aspect of communication: on paid professional speakers a coin (a gazet) for the
privilege of listening to the speaker announce the day’s
It has always been assumed that a newspaper article events. Many early newspapers were called gazettes to
might be expanded to a magazine article which could reflect this heritage.
become the basis for a hardcover book, which, in The history of mass communication technology involves
turn, could be a paperback, and then, perhaps a TV three information communications revolutions: phonetic
series and finally, a movie. At each step of change an writing, printing and computer technology. (See Time-
author and other enterprises could compete for entry Frame, p. 3.)
into the array of channels for reaching the public
mind and pocketbook. But today several media giants
own these arrays, not only closing off entry points for
competition in different media, but influencing the
choice of entry at the start. Message Pluralism The availability to an
audience of a variety of information and entertainment
Today, ownership concentration is an ongoing trend in sources.
the media business.

Phonetic Writing: The First Information

century) / Universitatsbibliothek, Gottingen, Germany / Bildarchiv

Two folios from the Gutenberg Bible, printed in the workshop of
Communications Revolution

Johannes Gutenberg, 1455 (parchment), German School, (15th

Early attempts at written communication began modestly
with pictographs. A pictograph is a symbol of an object
used to convey an idea. If you have ever drawn a heart
with an arrow through it, you understand what a picto-
graph is. The Sumerians of Mesopotamia carved the first

Steffens / Bridgeman Images

known pictographs in stone in about 3500 B.C.
The stone in which these early pictographic messages
were carved served as a medium—a device to transmit
messages. Eventually, people imprinted messages in
clay, and then they stored these clay tablets in a primitive
version of today’s library. These messages weren’t very The Gutenberg Bible, published by Johannes Gutenberg in
portable, however. Heavy clay tablets don’t slip easily into Germany in 1455, was the first book printed using movable
someone’s pocket. type. Although the printing was done mechanically, hand-
In about 2500 B.C., the Egyptians invented papyrus, a colored decorative drawings (called illuminations) often
type of paper made from a grasslike plant called sedge, were added to artistically enhance the text.
which was easier to write on, but people still communi-
cated using pictographs. for them. In the 14th century, for example, the library of
Pictographs as a method of communication developed the Italian poet Petrarch contained more than 100 manu-
into phonetic writing in about 1000 B.C. when people scripts that he himself had copied individually.
began to use symbols to represent sounds. Instead of In Petrarch’s day, literate people were either monks or
drawing a picture of a dog to convey the idea of a dog, members of the privileged classes. Wealthy people could
scholars represented the sounds d-o-g with phonetic writ- afford tutoring, and they also could afford to buy the hand-
ing. The invention of phonetic writing has been called the written manuscripts copied by the monks. Knowledge—and
first information communications revolution. “After being the power it brings—belonged to an elite group of people.
stored in written form, information could now reach a new
Printing: The Second Information
kind of audience, remote from the source and uncontrolled
Communications Revolution
by it,” writes media scholar Anthony Smith. “Writing
transformed knowledge into information.” As societies grew more literate, the demand for manu-
About 500 years later, the Greek philosopher Socrates scripts flourished, but a scribe could produce only one
anticipated the changes that widespread literacy would copy at a time. What has been called the second infor-
bring. He argued that knowledge should remain among mation communications revolution began in Germany
the privileged classes. Writing threatened the exclusive in 1455, when Johannes Gutenberg printed a Bible on a
use of information, he said. “Once a thing is put in writ- press that used movable type.
ing, the composition, whatever it may be, drifts all over the More than 200 years before Gutenberg, the Chinese
place, getting into the hands not only of those who under- had invented a printing press that used wood type, and
stand it, but equally of those who have no business with it.” the Chinese also are credited with perfecting a copper
In about 200 B.C., the Greeks perfected parchment, press in 1445. But Gutenberg’s innovation was to line up
made from goat and sheep skins. Parchment was an even individual metal letters that he could ink and then press
better medium on which to write. By about A.D. 100, onto paper to produce copies. Unlike the wood or copper
before the use of parchment spread throughout Europe, presses, the metal letters could be reused to produce new
the Chinese had invented paper, which was much cheaper pages of text, which made the process much cheaper.
to produce than parchment. Europeans didn’t start to use The Gutenberg Bible, a duplicate of the Latin original, is
paper until more than a thousand years later, in about considered the first book printed by movable type (47 cop-
A.D. 1300. The discovery of parchment and then paper ies survive today, 559 years later). As other countries
meant that storing information became cheaper and easier.
As Socrates predicted, when more people learned to
write, wider communication became possible because Pictograph A symbol of an object that is used to
people in many different societies could share informa- convey an idea.
tion among themselves and with people in other parts of Phonetic Writing The use of symbols to
the world. But scholars still had to painstakingly copy the represent sounds.
information they wanted to keep or pay a scribe to copy

adopted Gutenberg’s press, the price for Bibles plum-

meted. In 1470, the cost of a French, mechanically printed
Bible was one-fifth the cost of a hand-printed Bible.
The second information communications revolution—
printing—meant that knowledge, which had belonged to the

Michael Nagle/Bloomberg/Getty Images

privileged few, would one day be available to everyone. The
key development of printing was one of the essential con-
ditions for the rise of modern governments, as well as an
important element of scientific and technological progress.
Before the Gutenberg press, a scholar who wanted
specialized information had to travel to the place where it
was kept. But once information could be duplicated easily,
it could travel to people beyond the society that created it. The introduction of digital delivery represents the third
The use of paper instead of the scribes’ bulky parchment information communications revolution and affects every
aspect of politics, society and culture. The interconnectivity
also meant that books could be stacked end to end. For
of all types of digital products is on display at the 2015
the first time, knowledge was portable and storable. Consumer Electronics Show in Las Vegas, where car
Libraries now could store vast amounts of information manufacturers showcase how they have integrated mobile
in a small space. And because people could easily carry media into their latest designs.
these smaller, lighter books, all different kinds of people in
many different cities could read classical works simultane- transforming the media business more than we can
ously. Another benefit of the development of printing was foresee—enabling faster transmission of more informa-
that societies could more easily keep information to share tion to more people than ever before.
with future generations. Knowledge now was accessible to
many; knowledge no longer belonged to just the chosen few.
This effort to communicate—first through spoken mes-
Media Take Advantage
sages, then through pictographs, then through the written of Digital Delivery
word and finally through printed words— demonstrates The economics of the communications industries
people’s innate desire to share information with one makes digital delivery very important. All the industries
another. Storability, portability and accessibility of informa- involved in building and maintaining this interconnected
tion are essential to today’s concept of mass communica- network—broadcast, cable, telephone, computer, soft-
tion. By definition, mass communication is information that ware, satellite and the consumer electronics industries—
is available to a large audience quickly. want a piece of the estimated $1 trillion in global revenue
that digital delivery represents.
Computer Technology: The Third Leaders of the media industries in the United States
Information Communications Revolution are among the central driving forces in this network
Today’s age of communication has been called the third because many of the companies that are developing
information communications revolution because computers digital products—such as Apple, Microsoft, Intel and
have become the electronic storehouses and transmitters Facebook—are based in the U.S.
of vast amounts of information that previously relied on the Because the U.S. already contributes so many of the
written word. digital environment’s necessary elements, it has become
Electronic technology, which processes and trans- logical—and very profitable—for the media industries in
mits information much more efficiently than mechanical this country to drive converging technologies that package
devices, is driving the majority of changes affecting today’s and deliver information worldwide.
media. This has become possible with the development of
digital computers, beginning around 1950. Digital delivery One-Way Versus Two-Way Communication
means that changes in today’s media industries happen The classic model of mass communication (see Illustration
much faster than in the past. Satellite broadcasts, digital 1.2 on p. 6) describes a process that begins with a sender
recordings and the international electronic network called (or source), who puts a message on a channel (a medium).
the Internet are just three examples of the third informa-
tion communications revolution.
Although each medium has its own history and eco- Illuminations Hand-colored decorative drawings
nomic structure, today all of the media industries com- used to enhance printed text.
pete for consumers’ attention. Digital technology is

The channel then delivers the message to the receiver. This

is the equivalent of a one-way road—sender to receiver.
Digital delivery begins in the same way. The channel car-
ries information and entertainment (messages) from many

Mick Stevens/The New Yorker Collection/Cartoon Bank.com

different sources (senders) to many different people (receiv-
ers). The messages that return from the receiver to the
sender are called feedback. In the digital environment, mes-
sages and feedback can occur almost instantly because the
sender and the receiver can communicate with each other
simultaneously. This makes digital systems interactive.
To take advantage of this interactivity, today’s delivery
system has evolved from a communications system that
works like an ordinary television (sending messages and
programming one way from the sender to the receiver)
into a two-way, interactive system that can send and
receive messages simultaneously and that works more
like a combination television, telephone and computer. instance, connect to the Internet on a computer and receive
and send information. To communicate via the Internet, a
Dumb Versus Smart Communication computer uses a modem to connect to a telephone line or
A standard television set is a “dumb” appliance; it can a cellular signal, making two-way communication possible.
only deliver programming. You can change the channel And, unlike television and telephones, computers
to receive different programs, but you can’t talk back to can store digital information for future use. This ability
the people who send the programming to your televi- to store information makes the computer different from
sion set to tell them when you’d like to see a particular broadcast, cable, telephone and satellite communications.
program.
You can record something to watch later or pick a spe- How Today’s Communications
cific program to watch. But you can’t rearrange a televi-
sion network schedule to show all your programs exactly
Network Operates
when you want to see them. You also can’t add anything Today’s communications network combines many dif-
to the programs on your TV, such as your personal com- ferent elements from existing media industries. The
mentary about a football game or a bad movie. This type broadcast industry produces content and delivers one-
of mass communication—in which the programs are sent way communication by antenna and satellite; the cable
to you on an established schedule with you as a passive industry delivers one-way communication and two-way
receiver (a couch potato) for the program—is one-way. communication by underground (or overhead) cable;
As communications devices, however, telephones are the telephone companies deliver digital two-way com-
smarter. When you talk on the telephone, the person on munication using fiber, satellite and cellular technol-
the other end of the conversation can listen to you and ogy; and the electronics industry offers digital storage
talk back right away (and, in the case of a teleconference, capability.
this can involve several people at the same time). This A digital communications network combines all these
makes telephone communication interactive, giving you elements: content, two-way digital communication and
the ability to talk back—to transmit as well as to receive digital storage. Illustration 1.4 on page 17 shows how
messages. Telephone communications are two-way. this global communications network operates.
To communicate rapidly, telephone communication
uses a system of digitized information. When you talk, the The Receiver (You, the Subscriber)
telephone system uses electronic signals to transform your A digital network begins with you, the receiver/sub-
voice into a series of digits—ones and zeroes—and then scriber. For example, you use your smartphone and
reassembles these digits into an exact reproduction of your
voice on the other end of the line. This method of storing
and transmitting data is called digital communication.
Like telephone communications, computers operate Interactive A message system that allows senders
using digitized information and are interactive. Writ- and receivers to communicate simultaneously.
ten words, audio and video are translated and stored as Digital Communication Data in a form that can
bits. These bits can easily be transmitted, using two-way be transmitted and received electronically.
communication. This is the reason that someone can, for

IMPACT
Convergence
ILLUSTRATION 1.4

How the Global

Communications
Network Works Global Network
Today’s communications
network combines different
elements of broadcast, cable,
telephone, satellite, cellular
and computer technology
to create a global digital
communications service.
Telephone Satellite Cable
company company company

Phone services Video game services Interactive services

Mobile
media
Computer device Television

seamlessly shift between texts, video, music and news. The Channel (Cable, Telephone, Satellite
You can, for example, choose and Cellular Companies)
▸ First-run movies, TV episodes and music concert Cable, telephone, satellite and cellular companies provide
streaming Internet communications delivery, acting as a conduit—
gathering all the services from national and international
▸ Worldwide video news feeds, including access to over-
networks. Some companies offer only specific services,
seas channels in a variety of languages
or they package services together (local, national and
▸ Newspaper and video services, offering live access to international news services, for example), or they offer
today’s stories from news and sports outlets around an unlimited menu of all the available services and let
the globe on topics you’ve preselected you choose what you want. Cable, telephone, satellite and
▸ Internet video games and gaming sites cellular companies are competing today for consumers’
Internet business.
▸ Twitter feeds, social networks, blogs and YouTube videos.
You can choose the type of service you want based
As you glance through the offerings of each service and on each company’s offerings and pricing. Some services
make your choices, you can use various services at the are billed as pay-per-use (a $6 charge to view a first-run
same time. For example, you can check your bank bal- movie, for example) or per retrieved item (to use a news-
ance while you play poker online and read your text mes- paper’s archive to retrieve a single research article, for
sages while you watch an overseas soccer match. example).
All these simultaneous services, which you take for This international communications network and the
granted today, weren’t available 15 years ago. The Internet’s satellite system to support it already are in place—long-
digital communications network makes all this possible. distance carrier networks run by a communications

company such as AT&T or a satellite service such as profile of a well-known musician, complete with video, can
DirecTV or Dish Network. The Internet, as an interna- be made available on the musician’s Internet site during
tional web of electronic networks, forms the backbone the musician’s worldwide concert tour; and a publisher can
of this communications network, which is available to assemble excerpts and photos from a new book, along with
any consumer who has a screen and a cable, satellite, a video interview with the author, and make them available
cellular or telephone connection to the system. on the Internet to promote the book before it hits the book-
stores. With convergence, the availability of digital content
The Sender (Internet Service Providers) means all the mass media industries have become techno-
Internet service providers (ISPs), such as AT&T, offer logically interdependent and interconnected.
a way of organizing the information to help you find what
you want. Today’s broadcast networks, as well as cable and
satellite channels, essentially are video program services,
Mass Media Both Reflect
offering a group of programs for a specific subscription and Affect Politics, Society
fee. Telephone companies also are beginning to compete to and Culture
deliver programs directly to consumers. The media industries provide information and entertain-
Program services are moving toward a different ment, but mass media also can affect political, social and
model, however, which eventually will make it possible cultural institutions. Although the media actively influ-
for you to choose programs from NBC and ABC and not ence society, they also mirror it, and scholars constantly
CBS, for example, or pick ten channels from a list of avail- strive to delineate the differences.
able channels, rather than having to accept a large num- Current news events often focus attention on the role of
ber of channels—many that you don’t necessarily want mass media in society. For example, when President Obama
to watch—packaged together as they are now. When the announced in February 2015 that he planned to move ahead
complete communications network is in place, the ISP with immigration reform despite Congress’ objections, the
will offer customized bundles, and you will be able to public conversation about the relationship between Con-
select the specific bundle you want. gress and the presidency played out through public events
scheduled by both sides in the debate. If you were a scholar
The Message (Content) studying the role of the mass media in public policy, how
All text, audio and video that are digitized into bits are
potential content for an electronic communications sys-
tem. In a world of networked, rapid, digitized communi-
cations, any digitized textbook, novel, movie, magazine
article, recording, video segment or news story, for
example, qualifies as content.
Information and entertainment that already have
been produced, stored and digitized form the basic con-
tent for this communications network. Companies that
hold the copyrights for information and entertainment
Saul Loeb/AFP/Getty Images

can quickly and easily sell the content they already own
as products, along with the ongoing information-enter-
tainment they are producing, because they own the
rights to their content and don’t have to buy the rights
from someone else.
Today, media companies that traditionally have pro- Current news events often focus attention on the role mass
duced content, such as newspaper publishers, book pub- media play in the development of public policy. On February 4,
lishers, TV program producers and movie producers, 2015, President Obama invited media coverage of his meeting
are busy creating and buying more “inventory” for the with a group of young immigrants at the White House to bring
public attention to the need for immigration reform.
online world. “Movie companies have been increasing
production,” says The Wall Street Journal, “because there
is a general feeling that as ‘content providers’ they will be
Internet An international web of computer networks.
big winners.”
ISP Internet service provider.
Once information and entertainment products are digi-
tized, they are available in many different formats. This is Bundle The combination of telecommunications
services that the media industries can offer consumers.
the reason a music video of Disney songs is available online
as soon as—even before—Disney releases a new movie; a

would you analyze the role that mass media play in setting For the media industries, this means increasing costs to
the agenda surrounding public topics such as immigration? replace old equipment and expand to meet demand. For
This example shows the difficulty scholars face when consumers, this means a confusing array of products that
analyzing mass media’s political, social and cultural need to be replaced soon after purchase—video stream-
effects. Early media studies analyzed each message in ing replacing Blu-ray Disc players, which replaced DVD
the belief that once a message was sent, everyone would players, which replaced VCRs; curved HDTVs replacing
receive and react to the message in the same way. Then flat-screen HDTVs, which replaced conventional TVs;
studies proved that different people process messages and smartphones replacing iPods, which replaced CD
differently—a phenomenon described as selective players, for example.
perception. This occurs because everyone brings many Forecasters today envision an even bigger technol-
variables—family background, past experiences, inter- ogy imprint on people’s everyday lives. They describe
ests and education, for example—to each message. a future called the Internet of Things (IoT), where
Complicating the study of mass media’s political, social all aspects of consumers’ lives—from media, to medical
and cultural effects is the recent proliferation of media out- information to fitness to home security to the tempera-
lets and social networks. The multiplying sources for infor- ture of their air conditioners—will be managed through
mation and entertainment today mean that very few people their connection to the Internet. (see Impact/Conver-
share identical mass media environments. This makes it gence, p. 20.)
much more difficult for scholars to analyze the specific or The development of communications technology
cumulative effects of mass media on the general population. directly affects the speed with which a society and cul-
Still, scholars’ attempts to describe mass media’s ture evolve. A town with only one telephone or one radio
political, social and cultural roles in society are impor- may be impossible for people in the United States to
tant because, once identified, the effects can be observed. imagine, but there still are many countries in which ten
The questions should be asked so we do not become com- families share a single telephone, and people consider a
placent about the role of mass media in our lives, so we do television set to be a luxury.
not grow immune to the possibility that our society may By today’s standards, the earliest communications
be cumulatively affected by mass media in ways we can- obstacles seem unbelievably simple: how to transmit a
not yet accurately quantify. single message to several people at the same time and
Advertising also is often the focus of media analysis— how to share information inexpensively. Yet it has taken
does advertising cause you to buy products you don’t 5,500 years to achieve the capability for instant communi-
need? Is there a one-to-one relationship between how cation that we enjoy today.
much money a company devotes to advertising a product After you understand how each type of media busi-
and the success of that product? And, if so, how does an ness works, you can examine why people who work in
advertiser reach a specific customer for a product when the media make the business decisions they do and the
mass media delivery today is so diffused? “Marketers effects these decisions have on the United States and
used to try their hardest to reach people at home, when the global economy. With a better grasp of technol-
they were watching TV or reading newspapers or maga- ogy’s role in the evolving mass media landscape, you
zines. But consumers’ viewing and reading habits are so can see how technological change affects the media
scattershot now that many advertisers say the best way to business.
reach time-pressed consumers is to try to catch their eye Once you understand the history of mass media devel-
at literally every turn,” reports The New York Times. opment, you can consider the mass media’s present-day
The market research firm Yankelovich reports that a effects on you and on society as a whole. Only then—once
person living in a city 30 years ago saw up to 2,000 ad you understand the mass media’s evolutionary path from
messages a day, compared with up to 5,000 today. Accord- 3500 B.C. to today—can you truly begin to analyze the
ing to The New York Times, about half the people surveyed impact of mass media on your everyday life.
by Yankelovich said they thought marketing and adver-
tising today were “out of control.” How does advertising
affect your buying choices?
Internet of Things (IoT) A computing concept
that envisions a society where all electronic devices
Why You Should Understand are interconnected through the Internet and, in turn,
can process and share information and interact
Mass Media and Everyday Life globally.
In the United States, Europe and Asian countries that Selective Perception The concept that each
have encouraged technological advancements, commu- person processes messages differently.
nications changes are moving faster than ever before.

IMPACT
Convergence
The Internet of Things
Is Far Bigger Than
Anyone Realizes
By Daniel Burrus, Wired

When we truly consider the

ramifications of connecting a
vast array of data-gathering
sensors, devices, and machines
together, what’s important
to realize is that information
will be translated into action
at a rate that we have never
seen before. We are closing in
on a world with infinitesimal
reaction times, immediate
responses to changing
conditions, and unparalleled
control in managing assets
and resources.
The key is not to think small.
The Internet of Things (IoT) is
not merely about creating savings

Robyn Beck/AFP/Getty Images

within current industry models.
It’s about upending old models
entirely, creating new services
and new products. There is no
one sector where the Internet
of Things is making the biggest Skott Ahn, president and chief technology officer at
impact; it will disrupt every electronics manufacturer LG, discusses the Internet of
industry imaginable, including Things at the 2015 Consumer Electronics Show in Las Vegas.
agriculture, energy, security,
disaster management, and
healthcare, just to name a few. security systems, and infotainment I haven’t even come close to listing
How do you make this consoles to your phone. all the ways this technology is going
intelligence useful? Take a look This is a huge and transforma- to impact us. It’s going to create dis-
at your own home. What parts tional shift. It won’t stop with intel- ruption and opportunity in every
can you make smart? Here’s a ligent homes and businesses. We’re imaginable field, and it’s entirely up
simple one. I once observed a going to end up with intelligent to you whether you’re going to be one
video conferencing system that highways and vehicles, intelligent of the disrupted or the disruptors.
allowed a dog owner to actually factories and farms, intelligent Because this is going to happen. It’s
talk to his dog, call it over, and utility and power grids. This is time to learn about it now.
feed it remotely through a smart not some flight of fantasy, or one
appliance. Think bigger. A house of many potential outcomes (what
that knows when you’re coming I call a soft trend). This is a hard Daniel Burrus, CEO and
home because it’s connected to a trend: it’s a projection based on President of Burrus Research, is a
sensor in your car or smartphone. measurable facts, facts that cannot leading technology forecaster and
A home that links smoke alarms, be changed. innovation expert.

Excerpted from Daniel Burrus, “The Internet of Things Is Far Bigger Than Anyone Realizes,” Part 2. Wired.com, November 26, 2014.

REVIEW, ANALYZE,
Chapter 1
INVESTIGATE
Mass Media Are Everywhere You Are Mass Media Are Profit-Centered Businesses
• Adults spend three-fourths of their waking lives with • All U.S. media are privately owned except the Public
the media. Broadcasting Service and National Public Radio, which
• Some form of media touches your life every day— survive on government support and private donations.
economically, socially and politically. • Overall, American mass media ownership has been con-
tracting rather than expanding, with fewer companies
Mass Communication Becomes Wireless owning more aspects of the media business. This trend
• Historically, to be connected to media meant that you is called concentration of ownership.
had to be near an electrical outlet. • Concentration of ownership takes four forms: chains,
• Because of the development of digital communication, broadcast networks, conglomerates and vertical
most of today’s mass media is wireless. integration.
• Electronic signals have replaced wires, freeing people • Above all, the major goal of the American mass media
up to stay connected no matter where or when they is to make money. Except for National Public Radio and
want to communicate. the Public Broadcasting Service, all U.S. media operate
primarily as profit-centered businesses.
How the Communication Process Works
• Communication is the act of sending messages, ideas Convergence Dominates the Media Business
and opinions from one person to another. • Media acquisitions in the U.S. have skyrocketed
because most conglomerates today are publicly traded
• Intrapersonal communication means communication
companies and because, beginning in 1980, the federal
within one person.
government deregulated the broadcast industry.
• Interpersonal communication means communication
• The economic downturn that began in 2007 made
between two people.
publicly owned newspapers especially vulnerable
• Mass communication is communication from one per- to takeovers and acquisitions.
son or group of persons through a transmitting device
• The trend of mergers and acquisitions is expected to
(a medium) to large audiences or markets.
continue as changing technology expands the global
• By definition, mass communication is information that market for media products.
is made available to a large audience quickly.
Why Media Properties Converge
What Are the Mass Media Industries? • U.S. media industries continue to prosper, but the share
• There are eight mass media businesses: books, newspa- of profits is shifting among the different types of media
pers, magazines, recordings, radio, movies, television industries.
and the Internet.
• Supporters of concentrated ownership and convergence
• Books were the first mass medium. say a large company offers advantages that a small com-
• The Internet is the newest mass medium. pany can never afford; critics say concentrated owner-
ship and convergence interfere with message pluralism.
Three Key Concepts to Remember
• Mass media are profit-centered businesses. Advertisers and Consumers Pay the Bills
• Most of the income the mass media industries collect
• Technological developments change the way mass
comes from advertising.
media are delivered and consumed.
• People who want to sell you products pay for most of
• Mass media both reflect and affect politics, society
the information and entertainment you receive through
and culture.
the American mass media.
• Consumers support the media indirectly by buying the
products that advertisers sell.

Technology Changes Mass Media • Information and entertainment that already have been
Delivery and Consumption produced, stored and digitized provided the first content
for the communications network.
• The invention of phonetic writing in 1000 B.C. was con-
sidered the first information communications revolution. • Many motives shape the American mass media, includ-
ing the desire to fulfill the public’s need for information,
• The invention of movable type in 1455 marked the sec-
to influence the country’s governance, to disseminate
ond information communications revolution.
the country’s culture, to offer entertainment and to
• The invention of digital computers in 1951 ushered in provide an outlet for creative expression.
the third information communications revolution.
• Media industries expand and contract in the market-
• The new world of mass media uses wireless communica- place to respond to the audience.
tions technology, an intricate webbed network of many
different types of communications systems. Mass Media Both Reflect and Affect
• The development of communications technology Politics, Society and Culture
directly affects the speed with which a society evolves. • The media are political, social and cultural institutions
• Storability, portability and accessibility of information that both reflect and affect the society in which they
are essential to today’s concept of mass communication. operate.
• Multiplying sources of information and entertainment
Media Take Advantage of Digital Delivery mean that, today, very few people share identical mass
• Today’s information network includes the broadcast, media environments.
cable, telephone, computer, software, satellite and con-
sumer electronics industries. Why You Should Understand Mass
• The traditional delivery system for information and Media and Everyday Life
entertainment is primarily a one-way system. • In the United States, Europe and Asian countries that
have encouraged technological advancements, commu-
• The ability to talk back—to transmit as well as receive
nication changes are moving faster than ever before.
messages—makes the telephone interactive.
• For the media industries, this means increasing costs
• Today’s communications network is a two-way, interac-
to replace old equipment. For consumers, this means
tive system.
a confusing array of products that need to be replaced
soon after you buy them.
How Today’s Communications
Network Operates • The development of communications technology
directly affects the speed with which a society and
• The communications network needs content, two-way
culture evolve.
digital communication and digital storage.
• It has taken 5,500 years to achieve the capability for
• Cable companies, satellite services, telephone compa-
instant communication that we enjoy today.
nies and cellular companies deliver services on the new
communications network. • Forecasters predict that eventually all electronic devices
will be connected in an Internet of Things.
• Many Americans already have all the tools that a
digital communications system requires—television,
telephone, cellular, cable and satellite services and
electronics.

Key Terms
These terms are defined in the margins throughout this chapter and appear in alphabetical order with definitions in the
Glossary, which begins on page 361.

Affiliates 10 Digital Communication 16 ISP 18 Phonetic Writing 14

Bundle 18 FCC 10 Mass Communication 5 Pictograph 14
Concentration of Feedback 6 Mass Media Industries 7 Selective Perception 19
Ownership 10 Illuminations 15 Media 6 Subscription Television 9
Conglomerates 11 Interactive 16 Medium 6 Vertical Integration 11
Convergence 11 Internet 18 Message Pluralism 13 Wi-Fi 4
Deregulation 12 Internet of Things (IoT) 19 Noise 6

Critical Questions
1. Discuss the differences between one-way and two-way 4. In traditional media, advertising aimed at consumers
communication, and explain why two-way communica- pays for delivery of entertainment and information.
tion is important for the new communications network. How has digital delivery changed the way people pay
for mass media?
2. Identify the three communications revolutions and
discuss how each one drastically changed the world’s 5. What do technology forecasters mean when they talk
mass media. about The Internet of Things? List and explain three
advantages and disadvantages you can foresee if the
3. Summarize the advantages and disadvantages of the
Internet of Things becomes a reality.
concentration of ownership in today’s mass media
business.

Working the Web

This list includes both sites mentioned in the chapter as well News Corporation and 21st Century Fox
as others to give you greater insight into mass media and Formerly known as News Corporation (a combination of
everyday life. major newspaper publishers and the Fox media networks),
in 2013 the company was split off into two companies,
AOL (formerly America Online) News Corporation and 21st Century Fox.
aol.com
Originally part of AOL/Time Warner, AOL provides online News Corporation
digital content in partnership with The Huffington Post newscorp.com
Media Group, as well as several other pay advertising News Corporation is comprised of Fox News Corp.,
platforms such as Adtech, Pictela and Studio Now. News U.K., Dow Jones, The New York Post, Harper
Collins Publishers, Amplify, News American Marketing,
CBS Corporation Storyful and Move.
cbscorporation.com
CBS operates in every field of media and entertainment, 21st Century Fox
including CBS Radio, Showtime, Simon & Schuster Pub- 21cf.com
lishers, The CW, Pop, CBS Sports Network, CBS Television 21st Century Fox is made up of basic cable networks
Studios, CBS Interactive and CBS Films. (Fox News, Fox Deportes and Fox Sports 1) filmed enter-
tainment (20th Century Fox, Fox Searchlight and 20th
Comcast Corporation Century Fox Television), and the SKY Satellite Network.
comcast.com
Comcast Corp. has two primary businesses—Comcast Cable Sony Corporation of America (SCA)
and NBC Universal. Comcast provides cable, Internet and sony.com
landline phone service throughout the United States under The U.S. subsidiary of Sony Corp. is located in New York
the Xfinity brand. NBC Universal operates news and basic City. A large manufacturer of audio, video and information
cable networks, including the NBC and Telemundo broad- technology products, SCA’s primary businesses include Sony
cast networks, Universal Pictures and Universal Parks and Electronics, Sony Pictures Entertainment, Sony Computer
Resorts. Entertainment America and Sony Music Entertainment.

Gannett Company Time Inc.

gannett.com timeinc.com
Gannett publishes 82 daily newspapers, including USA Spun off from Time Warner, Inc. into a private publishing
Today, and operates 46 television stations, G/O Digital company in 2014, the company currently consists of both
(CareerBuilder.com and 120 online mobile applications), online and print versions of major magazine publications
and Newsquest, a regional community news provider such as People, Sports Illustrated, InStyle, Time, Real Simple,
in the U.K. Entertainment Weekly and Fortune.

Time Warner Inc. company that allows subscribers to send and receive
timewarner.com 140-character messages or “tweets” from anywhere
in the world via a cell phone.
Time Warner Inc.’s primary businesses include cable and
broadcast television networks and film and television Viacom Incorporated
entertainment companies (CNN, HBO, Cinemax and Warner viacom.com
Brothers). In 2014, Time Warner spun off its magazine divi-
sion (including Sports Illustrated and Time magazines) into Viacom Inc. has two large entertainment divisions—Viacom
a separate company called Time Inc. (TimeInc.com). Media Networks and Paramount Pictures Corporation. Via-
com Media Networks is comprised of MTV, Comedy Central,
Tribune Media Company Nickelodeon and BET. Paramount Pictures includes Para-
and Tribune Publishing mount Pictures, Paramount Vantage, Paramount Animation,
Insurge Pictures, MTV Films and Nickelodeon Movies.
Formerly known as The Tribune Company, Tribune was split
into two companies in 2014. The Walt Disney Company
Tribune Media thewaltdisneycompany.com
tribunemedia.com The Walt Disney Company operates family entertainment
and media companies under five different business opera-
Tribune Media is comprised of television and digital com-
tions: Media Networks (Disney/ABC Television Group and
panies, including 42 television stations (including WGN
ESPN Inc.), Parks and Resorts, Walt Disney Studios, Disney
America), Tribune Studios, Gracenote and WGN-Radio.
Consumer Products and Disney Interactive.
Tribune Publishing YouTube
tribpub.com
youtube.com
Tribune Publishing is now comprised of The Chicago
Owned and operated by Google Inc., YouTube allows people
Tribune, The Los Angeles Times, The Orlando Sentinel,
to watch videos online from around the world about any
The Sun Sentinel and The Baltimore Sun.
subject, including comedy, news and politics, pets and
animals and sports. In early 2015, the company announced
Twitter
plans to launch a separate online channel just for children.
twitter.com
Headquartered in San Francisco and claiming more than
500 million users, Twitter is an online social networking

Impact/Action Videos are Log on to

concise news features on MindTap for
various topics created Media/Impact to
exclusively for Media/ access a variety of additional material—
Impact. Find them in Media/ including learning objectives, chapter readings
Impact’s MindTap at with highlighting and note-taking, Impact/Action
cengagebrain.com. Videos, activities, and comprehension quizzes—
that will guide you through this chapter.

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Week 1 Reading 1 - Media-Impact

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Week 1 Reading 1 - Media-Impact

Uploaded by

MASS MEDIA

AND EVERYDAY LIFE 01

Today’s mobile media, such as smartphones,

“(The Internet of Things) is going to create disruption and opportunity

TimeFrame Three Information Communications

 3500 B.C. The first known pictographs are carved in stone.

2500 B.C. The Egyptians invent papyrus.

1445 The Chinese invent the copper press.

1455 The Second Information Communications Revolution: Movable Type

1741 The first American magazine is published.

1951 The Third Information Communications Revolution: Digital Computers

1980 The Federal Communications Commission begins to deregulate the

1989 Tim Berners-Lee develops the first Internet Web browser.

2010 Apple introduces the iPad tablet.

2013 Wearable technology, including the Smartwatch, debuts.

2015 Internet advertising income reaches $51 billion annually.

Advertising Age Marketing Fact Pack

In mass communication, the sender (or source) puts the

Mass Communication Communication from one

that delivers the Sender (source) Receiver (consumer)

and that response

Nicolas Asfouri/AFP/Getty Images

significant portion of magazine advertising revenue has Radio

services Pandora, Rhapsody and Spotify have also sto-

Tom Toro/The New Yorker Collection/Cartoon Bank.com

called concentration of ownership, takes four differ-

Kristy Sparow/Getty Images Entertainment/Getty Images

Gannett is a newspaper chain that is also a vertically inte-

Convergence Dominates the

selves in the marketplace to maintain and increase

broadcast company to own only five TV stations, five AM

Kiyoshi Ota/Bloomberg/Getty Images

1. Media properties can be attractive investments. Many

2. Newspapers and broadcast stations are scarce com-

Phonetic Writing: The First Information

century) / Universitatsbibliothek, Gottingen, Germany / Bildarchiv

Johannes Gutenberg, 1455 (parchment), German School, (15th

Steffens / Bridgeman Images

adopted Gutenberg’s press, the price for Bibles plum-

Michael Nagle/Bloomberg/Getty Images

The channel then delivers the message to the receiver. This

Mick Stevens/The New Yorker Collection/Cartoon Bank.com

How the Global

Phone services Video game services Interactive services

When we truly consider the

Robyn Beck/AFP/Getty Images

Affiliates 10 Digital Communication 16 ISP 18 Phonetic Writing 14

Working the Web

Gannett Company Time Inc.

Impact/Action Videos are Log on to

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