MEDIA OWERSHIP: CONCENTRATION, MEDIA OWERSHIP: CONCENTRATION, CONVERGENCE, VERTICAL INTEGRATIONCONVERGENCE, VERTICAL INTEGRATION

Professor Kim KieransProfessor Kim Kierans

University of King’s CollegeUniversity of King’s College

Halifax, NSHalifax, NS

kim.kierans@ukings.cakim.kierans@ukings.ca

Media in CanadaMedia in Canada 1122 daily newspapers - 95 paid & 27 free (2012)22 daily newspapers - 95 paid & 27 free (2012) 1,100 community newspapers (2012)1,100 community newspapers (2012) 2,300 magazine publications2,300 magazine publications 1,086 radio services (2011) including 733 private stations, 1,086 radio services (2011) including 733 private stations,

353 religious, community, campus, Aboriginal, and other 353 religious, community, campus, Aboriginal, and other radio servicesradio services

109 commercial TV stations (2011) –CTV, Global, TVA, 109 commercial TV stations (2011) –CTV, Global, TVA, City/Omni City/Omni

232 Pay, Pay-per-view, Video-on-Demand and Specialty 232 Pay, Pay-per-view, Video-on-Demand and Specialty Services (2011)Services (2011)

108 community TV stations (2011)108 community TV stations (2011) Canadian Broadcasting Corporation – TV (29), Radio (82), Canadian Broadcasting Corporation – TV (29), Radio (82),

online, & specialty services (2011)online, & specialty services (2011)

Sources: Newpapers Canada, CRTC, Stats Can.Sources: Newpapers Canada, CRTC, Stats Can.

Source: http://openmedia.ca/sites/openmedia.ca/files/Media%20ownership%20chart-2012_0.pdfSource: http://openmedia.ca/sites/openmedia.ca/files/Media%20ownership%20chart-2012_0.pdf

DefinitionsDefinitions ConcentrationConcentration – – when media companywhen media company

buys properties that have similar services. Concentration buys properties that have similar services. Concentration of ownership can lead to a company dominating a of ownership can lead to a company dominating a market market and/or anand/or an audience audience i.e. Irving in NB, Transcontinental in Nfldi.e. Irving in NB, Transcontinental in Nfld

Convergence or cross-ownershipConvergence or cross-ownership –– the merging of previously distinct media platforms and the merging of previously distinct media platforms and

services – print, radio, TV, cable, and Internet services – print, radio, TV, cable, and Internet ((NJ p. 69 ((NJ p. 69

Vertical IntegrationVertical Integration-- when one company owns both when one company owns both content and distribution. - TV or radio (programming) and content and distribution. - TV or radio (programming) and cable, satellite, Internet, phone or wireless service cable, satellite, Internet, phone or wireless service

(distribution)(distribution)..

Media mergers –Wave 1Media mergers –Wave 12000-20062000-2006

2000 – 1. BCE> CTV & Globe and Mail; 2. 2000 – 1. BCE> CTV & Globe and Mail; 2. Quebecor> Videotron, TVA & Sun Quebecor> Videotron, TVA & Sun newspaper chain; 3.CanWest> Hollinger newspaper chain; 3.CanWest> Hollinger newspapers & National Post (total +$14 newspapers & National Post (total +$14 billion)billion)

2006 – BCE sells stake in CTV and new 2006 – BCE sells stake in CTV and new company Bell Globe> CHUM ($1.6 million)company Bell Globe> CHUM ($1.6 million)

Media Mergers – Wave 2 Media Mergers – Wave 2 2007-20092007-2009

Rogers> City TV (from CTVglobemedia Rogers> City TV (from CTVglobemedia $375 m)$375 m)

Astral>Standard Radio ($1.08 billion)Astral>Standard Radio ($1.08 billion) Quebecor> Osprey newspaper chain ($517 Quebecor> Osprey newspaper chain ($517

million)million) CanWest & Goldman Sachs>Alliance CanWest & Goldman Sachs>Alliance

Atlantics (2.3 billion)Atlantics (2.3 billion)

Media mergers Wave 3Media mergers Wave 32010-current2010-current

Post Media> CanWest newspapers ($1.2B); Post Media> CanWest newspapers ($1.2B); Shaw>CanWest Global TV ($2B); Bell Shaw>CanWest Global TV ($2B); Bell Canada>CTV ($3.2B)Canada>CTV ($3.2B)

Latest Bell Canada>Latest Bell Canada>

Astral Media ($3.38B)Astral Media ($3.38B)

http://www.michaelgeist.ca/content/view/6612/125/http://www.michaelgeist.ca/content/view/6612/125/

Why should Why should youyou care? care?

Commercial media corporations haveCommercial media corporations have major power over politics, public major power over politics, public

discourse, discourse,

and culture.and culture.” ”

(C. Edwin Baker, (C. Edwin Baker, Media Concentration and Democracy: Why Ownership MattersMedia Concentration and Democracy: Why Ownership Matters , Introduction, 2006) , Introduction, 2006)

http://www.iabcanada.com/wp-content/uploads/2010/09/Canadian_Online_Advertising_Revenue_Survey_en.pdfhttp://www.iabcanada.com/wp-content/uploads/2010/09/Canadian_Online_Advertising_Revenue_Survey_en.pdf

“The function of the press in society is to inform, but

its role is to make money.”

(PD,55, Leibling, The Press,(New York:Ballentine Boos, 1964, 7)

Concentration &Concentration &Convergence/Cross-ownership Convergence/Cross-ownership

1) Restrict diversity of 1) Restrict diversity of ownershipownership2) Restrict diversity of 2) Restrict diversity of viewpointsviewpoints3) Restrict diversity of 3) Restrict diversity of sourcessources4) Restrict diversity of 4) Restrict diversity of approachesapproaches to information to information

Media ownership rulesMedia ownership rulesBroadcasting:Broadcasting: a non-Canadian can own up a non-Canadian can own up

to 46.7 per cent of a to 46.7 per cent of a

Canadian broadcaster Canadian broadcaster

Print:Print: non-Canadian ownership is limited to non-Canadian ownership is limited to 25 per cent because Section 19 of the 25 per cent because Section 19 of the Income Tax ActIncome Tax Act requires 75 per cent requires 75 per cent Canadian ownership to offer tax Canadian ownership to offer tax deductions to advertisers.deductions to advertisers.

Competition Act (1985)Competition Act (1985)Governs all business mergers including newspapers Governs all business mergers including newspapers

and telecommunicationsand telecommunications Considers financial or Considers financial or economic aspects of economic aspects of mergers and their mergers and their effect on competitive effect on competitive markets markets notnot public interestpublic interest

The problem?The problem? The act The act ‘misses ‘misses a critical dimension of news and a critical dimension of news and

information, namely, the importance of the plurality of information, namely, the importance of the plurality of owners and the diversity of voices, not just in a given owners and the diversity of voices, not just in a given community but in the wider regional and national community but in the wider regional and national landscape’ landscape’ (Senate, 2006:17). (Senate, 2006:17).

The Broadcasting Act The Broadcasting Act (1991)(1991)

… …declares that declares that ‘‘programming should serve to programming should serve to safeguard, enrich and strengthen the safeguard, enrich and strengthen the cultural, political, social and economic cultural, political, social and economic fabric of Canadafabric of Canada’’ through a wide range of through a wide range of programming programming ‘‘that reflects Canadian that reflects Canadian attitudes, opinions, ideas values and artistic attitudes, opinions, ideas values and artistic creativity’creativity’..

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Studies into media concentrationStudies into media concentrationBritain - Royal Commission on the Press, 1947 Britain - Royal Commission on the Press, 1947

United States - Hutchins Commission on Press United States - Hutchins Commission on Press Freedom, 1947 “Theory of Social Responsibility”Freedom, 1947 “Theory of Social Responsibility”

“ “Full access to the day’s intelligence.”Full access to the day’s intelligence.”

Canadian media studiesCanadian media studiesFirst media study….

Special Senate Committee on Mass MediaSpecial Senate Committee on Mass Media 1969 known as the Davey Committee1969 known as the Davey Committee

“ “A successful paper prepares itsA successful paper prepares its

audience for change.”audience for change.”

Recommends:Recommends:

Press Ownership Review BoardPress Ownership Review Board

to screen future newspaper mergersto screen future newspaper mergers Why?Why? Increased concentration of ownership is Increased concentration of ownership is

undesirable and contrary to public interest.undesirable and contrary to public interest.

Second media study:Second media study:Royal Commission on NewspapersRoyal Commission on Newspapers 1980 1980 - known as the Kent Commission - known as the Kent Commission

RRecommended:ecommended: 1. New 1. New Canada Newspaper ActCanada Newspaper Act 2.2. Limit media companies to Limit media companies to five newspapersfive newspapers and and

only one newspaper in each geographical market only one newspaper in each geographical market 3. Adopt a policy to prevent new mergers 3. Adopt a policy to prevent new mergers of print of print

and broadcast and broadcast outlets in a single marketoutlets in a single market

Why? Why? Without government regulations “company Without government regulations “company will take over company until all Canadian will take over company until all Canadian newspapers are divisions of one or two great newspapers are divisions of one or two great conglomerates.” conglomerates.” ((Royal Commission, 1981:220).Royal Commission, 1981:220).

Other studies…Other studies… Royal Commission on Corporate Concentration (1978) Royal Commission on Corporate Concentration (1978)

Federal Task Force on Broadcasting Policy, Caplan-Sauvageau Federal Task Force on Broadcasting Policy, Caplan-Sauvageau (1986) (1986)

House of Commons Heritage Committee, “Our Cultural House of Commons Heritage Committee, “Our Cultural Sovereignty” - a study of the Canadian broadcasting system Sovereignty” - a study of the Canadian broadcasting system (2003) (2003)

Standing Senate Committee on Transport and Communications, Standing Senate Committee on Transport and Communications, Interim Report on the Canadian News Media (2004) and Final Interim Report on the Canadian News Media (2004) and Final Report (2006)Report (2006)

House of Commons Heritage CommitteeHouse of Commons Heritage Committee Impacts of Private Television OwnershipImpacts of Private Television Ownership (2011) (2011)

Source: International Media Concentration Research Projects with updates for 2011-12 for Canada by Dwayne WinswckSource: International Media Concentration Research Projects with updates for 2011-12 for Canada by Dwayne Winswck

Canadian Broadcasting Canadian Broadcasting

Corporation - CBC Corporation - CBC public broadcaster public broadcaster

‘‘In a world of media concentration In a world of media concentration and cross-media ownership, the and cross-media ownership, the importance of the CBC as an importance of the CBC as an alternate source of news and alternate source of news and information programming is greater information programming is greater than ever’than ever’ (Senate, 2006:33-39).(Senate, 2006:33-39).

Independent voicesIndependent voices

A brave new world…A brave new world… Microfunding and micropayments/Paywalls Microfunding and micropayments/Paywalls

(Globe Plus, AllNovaScotia, Brunswick News(Globe Plus, AllNovaScotia, Brunswick News Trusts, family ownership Trusts, family ownership (Toronto Star, L’Acadie (Toronto Star, L’Acadie

Nouvelle, The Guardian) Nouvelle, The Guardian) Sponsorships & Philanthropy Sponsorships & Philanthropy (Tyee.ca, ProPublica)(Tyee.ca, ProPublica) Not for profit Not for profit (Halifax media coop, rabble.ca, (Halifax media coop, rabble.ca,

tyee.ca)tyee.ca) CollaborationCollaboration (Huffington Post, OhMyNews) (Huffington Post, OhMyNews) Hyperlocal websites, newspapers, bloggingHyperlocal websites, newspapers, blogging Mobile subscriptionsMobile subscriptions Government subsidies tax breaksGovernment subsidies tax breaks

Final thought…Final thought…

‘‘No real democracy can function No real democracy can function without a healthy, diverse and without a healthy, diverse and

independent news media to inform independent news media to inform people about the way their society people about the way their society

works, what is going well and works, what is going well and perhaps most important, what is not perhaps most important, what is not going well or needs to be improved’going well or needs to be improved’

(Senate, 2004:1). (Senate, 2004:1).