Problems of Media Concentration

Media concentration can occur in a variety of ways and for different reasons. Companies can integrate horizontally and vertically or through product diversification and internationalization. Often media concentration is considered to have a detrimental effect upon democratic systems, which vitally depend on a diverse media system, that reflects the whole variety of ideas, viewpoints and opinions that exist in a society and represents a wide range of political and cultural societal groups.

A concentrated media market might not only have a disadvantageous impact upon pluralism and allow media owners a heightened influence on public opinion, but can also enable the large market players to close the market to new entrants, independent producers, or drive out weaker competitors. In this case the result may be a market monopoly or oligopoly, which besides being considered counter-competitive in the media market also produces social costs.

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Advertising and the Content Industry - The Coca-Cola Case

Attempts to dictate their rules to the media has become a common practice among marketers and the advertising industry. Similar as in the Chrysler case, where the company demanded that magazines give advance notice about controversial articles, recent attempts to put pressure on content providers have been pursued by the Coca-Cola Company.

According to a memo published by the New York Post, Coca-Cola demands a free ad from any publication that publishes a Coke ad adjacent to stories on religion, politics, disease, sex, food, drugs, environmental issues, health, or stories that employ vulgar language. "Inappropriate editorial matter" will result in the publisher being liable for a "full make good," said the memo by Coke advertising agency McCann-Erickson. Asked about this practice, a Coke spokes person said the policy has long been in effect.

(Source: Odwyerpr.com: Coke Dictates nearby Editorial. http://www.odwyerpr.com)

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Chrysler Corporation

American automotive company first incorporated in 1925 and reorganized and newly incorporated in 1986. It has long been the third largest automaker in the United States (after General Motors and the Ford Motor Company). Founded by Walter P. Chrysler, it took over the business and properties of Maxwell Motor Company, Inc. (first formed in 1913). Today its major subsidiaries include Chrysler Automotive Operations, Inc., which manufactures Plymouth, Dodge, and Chrysler passenger cars, Dodge trucks, and auto parts and accessories; and the Chrysler Financial Corporation. Headquarters are in Highland Park, Mich., U.S.

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