The Political Economy Of Corporate Media

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The capitalist natures of media organizations reveal political and economic pressures that have a direct impact on the way media content is shaped. Leading academics have theorized this concept as the political economy of corporate media. There are three key determinants that carry significant impact on the production of media content; these include media ownership and the structures of power, advertising imperatives, and newsroom politics. The issue of corporate capitalism driving the media industry of today does provide a cause for concern. However recent research suggests that in an era of new media the power of the political economy is diminishing. With the rise of social media and the internet being used as a vehicle for public debate, new media can be…show more content…
New Zealand’s media monopoly controls the majority on national content and is comprised of four major international corporations; APN News and Media, Fairfax Media, Mediaworks and News Corporation/SkyTV. Firstly, foreign ownership is a result of the lack of governmental policies and restrictions enforced when the Labour government completely deregulated the media sector in 1989 (Cocker, 2008). This provides cause for concern with mass media being in the hands of foreign and non media executives, allowing for the neglect of public service broadcasting and further driving the bottom line profit motives. The increasing concentration of power in the hands of very few media giants leads to the mass media becoming an extension of economic and political power of the executives of these large corporations. Media economics explains that this level of concentration occurs through horizontal integration and vertical integration, which offers significant opportunities to sell their own products over various sectors of the corporation (O,Sullivan, Dutton & Rayner, 1994). Horizontal integration
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