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SMAD 150 Final Questions & answers with Complete solutions | Latest edition
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SMAD 150 Final Questions & answers with Complete solutions | Latest edition
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SMAD 150 FinalWestinghouse Electric company, which began as a maufactuer of railroad and air
brakes in Pittsburgh in 1886, bought which television network in 1995 when it decided to
change its line of business. - ANS-CBS
In 1999, Viacom announced a merger with which television business? - ANS-CBS
How concentrated is media - ANS-There are five media corporations
Mergers in the media - ANS-powerful media companies merge with other large
companies to create on huge one to be more successful
Horizontal mergers - ANS-One company buys another company of the same type;
increases outlets for the same product. Example: Clear channel radio stations.
Vertical mergers - ANS-One company buys suppliers and/or distributors; integrates
production and distribution. Example: Viacom, Paramount Picture, MTV, Nickelodeon
Conglomerate - ANS-Media company buys a combination of other media companies
and/or companies in a non media business
benefits of localism - ANS-Shared power involves more people in decision making and
better serves the public interest.
Benefits to efficiency in the media - ANS-concentration of power means growth, uniform
products, and low prices
issues of concern regarding concentration in the media - ANS-concentration in the
media causes increased barriers to entry, small companies can go out of business or
are brought by big companies, there is a danger of narrowing the range of voices.
Disney and 21st century fox - ANS-77.1 billion dollars
AT&T and time warner - ANS-85 billion dollars
Megamergers - ANS-*one media conglomerate buys another media conglomerate
*consolidates enormous resources among a few companies
, *no signs of slowing down: number of mergers among media companies more than
doubled from 2011 to 2012
Deregulation - ANS-Belief that strong vertical integration will drive competition away and
exploit the consumer
Harm within concentration - ANS-increased barriers to entry, reduced level of
competition, reduced number of public voices, changes in content,
Increased barriers to entry - ANS-Barriers to entry into the radio and television
broadcasting business have always been very high. Barriers to entry into the
newspaper, magazine, book publishing, recording, and internet businesses have been
low. There is no evidence that concentration of ownership has increased the barriers to
enter these markets.
Reduced levels of competition - ANS-concentration of ownership has not eliminated
competition. Big conglomerates still compete against one another and also compete
against internet companies
Reduced number of public voices - ANS-Many critics argue that the media industries
loose diversity of voices when the industries become more concentrated. In fact as
media became more concentrated, the media became more diverse.
Changes in content - ANS-Critics argue that as competition among media companies
decrease, the content of messages changes in a negative way. However, group
ownership had no impact on the financial commitment or the local and staff emphasis of
news coverage.
Two factors that drive the trend for concentration - ANS-Factors of efficiencies and
deregulation
Regulation - ANS-The government began monitoring the degree of concentration and
forced very large companies to split up when they had become too large and were
becoming monopolies. They instituted policies to try to encourage diversity of ownership
and prevent monopolies.
deregulation - ANS-belief that strong vertical integration will drive away competition and
exploit the consumer - more concern with companies ability to dominate market
Issues of concern with mergers - ANS-changes in media content
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