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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-1994
Viacom multimedia and industrial corporation takes control of Paramount Communications for US$ 9.6 billion, as well as Blockbuster Entertainment, a huge video store chain, for US$ 8.4. billion.
1995
Entertainment giant Disney buys Capital Cities-ABC for US$ 19 billion.
The industrial and broadcasting company Westinghouse Corp. buys out CBS for US$ 5.4 billion.
In a US$ 7.2 billion deal, Time Warner acquires Turner Communications, owner of prime cable TV channels CNN, TBS and TNT and a major classic American film library.
1996
Westinghouse/CBS buys Infinity Broadcasting's large group of radio stations.
Murdoch and News Corp. acquire ten more TV stations and TV production studios with the US$ 2.5 billion purchase of New World Communications Group.
Viacom buys half of UPN-TV network, adding that to its other holdings, which include eleven TV stations, along with MTV, VH-1, and other cable TV channels and Paramount movie studios.
1997
Radio Groups Chancellor Media and Evergreen merge and are linked by ownership with Capstar Broadcasting; they also buy ten radio stations from Viacom. By mid-1997 Chancellor/Capstar controls no fewer than 325 radio stations around the United States.
Chancellor/Capstar's controlling ownership group, Hicks Muse Tate & Furst, buys the seventh largest radio group, SFX, adding another seventy-two radio stations, making a total of nearly four hundred stations controlled by this one source.
Westinghouse-CBS buys out American Radio Systems, the fourth largest radio chain in total audience, which gives Westinghouse-CBS over 170 radio stations with a total audience nearly equal to that of the Chancellor/Capstar group.
Giant European-based print and electronic publishing and data base corporations Reed Elsevier and Wolters Kluwer merge.
1998
Bertelsmann buys the Random House-Alfred A. Knopf-Crown Publishing group of book publishers from Newhouse/Advance Publications, adding to its Bantam-Doubleday-Dell publishing group and giving Bertelsmann by far the largest English-language publishing operations.
1999
AOL, the worlds leading Internet service provider and Time Warner, the worlds leading classical media company merge in a US$ 243.3 billion deal.
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Commercial media aim towards economies of scale and scope, with the goal to maximize profits. As advertising money usually is their primary source of revenue their content very often is attuned to meet the needs of advertisers and marketers. Information necessary for a citizen's participation in the public sphere usually only plays a minor role in their programming, as it does not comply with the demands of an economic system whose principal aim is the generation of profit. They also virtually always are structured in accord with and to help reinforce society's defining hierarchical social relationships, and are generally controlled by and controlling of other major social institutions, particularly corporations.
Independent content provider on the other hand mostly act on a non-profit basis and try to avoid dependence on corporate powers and the state. One of their main concerns is the critical observation of public interest issues. The central aim of independent content provider's activities usually is to bring aspects and standpoints neglected by the (commercial) mainstream media to the public and subvert society's defining hierarchical social relationships. Promoting public debate and an active civil society they engage in the organization of alert actions and information campaigns or create subversive art.
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