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D. Translate the following text from Russian into English



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D. Translate the following text from Russian into English.




  • Распространение новостей, аргументация и убеждение ‒ вот инструменты, с помощью которых личность и организация имеют право выражать себя в обществе. И хотя теоретики призывают разграничивать понятия PR и «паблисити» (распространение информации о продукте, человеке, услуге, предполагающее последующую оценку с точки зрения эффективности) освещение в СМИ является также главной составляющей любой PR-кампании. Кроме построения взаимодействия с потребителями и заинтересованными лицами через СМИ, PR также позволяет строить отношения с партнерами, инвесторами, и трудовые отношения внутри компании.

  • Одна из основных проблем, которую решает PR ‒ определение целевой аудитории, того ее сегмента, к которому адресовано сообщение. Иногда это довольно широкая общность, ‒ например, мировая общественность, ‒ но чаще это какая-то малая часть населения. Кроме собственно потенциальных потребителей, есть также другие группы людей, обладающие определенным интересом в этой области. В английской литературе для обозначения таких людей используется термин stakeholders. Заинтересованные стороны и аудитория сообщения могут не совпадать. К примеру, благотворительные организации используют PR и разворачивают рекламную кампанию, чтобы найти деньги для лечения болезни. Благотворительная организация и люди с заболеваниями являются заинтересованными сторонами, а аудитория ‒ это любой, кто потенциально может внести пожертвования.

  • Иногда различия между сегментами аудитории и заинтересованными лицами приводят к тому, что необходимо создавать несколько совершенно разных и при этом взаимодополняющих сообщений, ‒ для каждой группы свое. Это непростая задача, более того, часто (особенно в политике) бывает так: то, что рассчитано на одну часть аудитории, вызовет негативную реакцию у другой части.

  • Воздействие на массовое сознание обычно происходит через печатные и электронные СМИ. Но в отличие от рекламных, pr-сообщения являются косвенными и передаются, как правило, через участие в публичных событиях, дискуссиях и организацию псевдособытий: пресс-конференций, презентациях, семинары.



  • (http://www.polylog.ru/ru/marketing-communications-community/ pr-btl- help/public-relations.htm)



    Chapter 13: Exercises
    Media Economics

    and the global marketplace

      1. Notes



    AOL Inc. (previously known as America Online) is an American global Internet services and media company. AOL is headquartered at 770 Broadway in New York. Founded in 1983 as Control Video Corporation, it has franchised its services to companies in several nations around the world or set up international versions of its services.
    (AOL. 22 May 2011. 15 May 2011 ˂http://en.wikipedia.org/wiki /AOL˃.)
    Time Warner (formerly AOL Time Warner) is the world's second largest entertainment conglomerate in terms of revenue (behind Disney), as well as the world's largest media conglomerate, headquartered in the Time Warner Center in New York City.
    (Time Warner. 3 May 2011. 22 May 2011 ˂http://en.wikipedia.org/wiki/Time_Warner˃.)
    CBS Broadcasting Inc. (CBS) is a major US television network, which started as a radio network. The name is derived from the initials of the network's former name, Columbia Broadcasting System.
    (CBS. 19 May 2011. 22 May 2011. ˂http://en.wikipedia.org/wiki/ CBS˃.)
    MCI, Inc. is an American telecommunications subsidiary of Verizon Communications that is headquartered in Ashburn, unincorporated Loudoun County, Virginia. The corporation was originally formed as a result of the merger of WorldCom (formerly known as LDDS followed by LDDS WorldCom) and MCI Communications, and used the name MCI WorldCom followed by WorldCom before taking its final name on April 12, 2003 as part of the corporation's emergence from bankruptcy.
    (WorldCom. 17 May 2011. 22 May 2011. ˂http://en.wikipedia. org/wiki/MCI_Inc. ˃.)
    Tyco International Ltd. NYSETYC is a highly diversified global manufacturing company incorporated in Switzerland, with United States operational headquarters in Princeton, New Jersey (Tyco International (US) Inc.)
    (Tyco. 26 April 2011. 22 May 2011 ˂http://en.wikipedia.org/ wiki/ Tyco_International˃.)
    Adelphia Communications Corporation named after the Greek word αδελφοίadelphoi "brothers", was a cable television company headquartered in Coudersport, Pennsylvania. Adelphia was the fifth largest cable company in the United States before filing for bankruptcy in 2002 as a result of internal corruption. Adelphia was founded in 1952 by John Rigas in the town of Coudersport, which remained the company's headquarters until it was moved to Greenwood Village, Colorado shortly after filing for bankruptcy.

    Adelphia. 21 May 2011. 22 May 2011 ˂http://en.wikipedia.org/

    wiki/ Adelphia_Communications_Corporation˃.)
    Global Crossing Limited is a telecommunications company that provides computer networking services worldwide.
    (Global Crossing. 20 April 2011. 22 May 2011 ˂http://en.wikipedia. org/wiki/Global_Crossing˃.)
    RCA Corporation, founded as the Radio Corporation of America, was an electronics company in existence from 1919 to 1986. Currently, the RCA trademark is owned by the French conglomerate Technicolor SA through RCA Trademark Management S.A., a company owned by Technicolor. The trademark is used by Sony Music Entertainment and Technicolor, which licenses the name to other companies like Audiovox and TCL Corporation for products descended from that common ancestor.

    (RCA. 15 May 2011. 22 May 2011 ˂http://en.wikipedia.org/wik

    i/RCA˃.)



    1. I. Multiple Choice



    2. Choose the alternative that best completes the statement or answers the question.



    1. 1. Throughout the 1990s, Microsoft was accused of being a _____.




    1. a. monopoly b. oligopoly c. limited competition d. unlimited competition



    2. 2. What are two primary ways in which the media collects revenues?



    3. a. economic and monopolistic b. marketing strategies and regulatory practices c. advertising and marketing d. direct payment and indirect payment



    4. 3. _____ refers to the practice of increasing production levels in order to reduce the cost of an item.




    1. a. Limited competition b. Economies of scale c. Indirect payment d. none of the above




    1. 4. What is an economic situation in which just a few firms dominate an industry?




    1. a. oligopoly b. limited competition c. monopoly d. all of the above

    2. 5. Which of the following is an example of media products that are paid for directly?




    1. a. books b. CDs c. movies d. all of the above




    1. 6. The _____ prohibited manufacturers from selling only to dealers and contractors who agreed to reject the products of business rivals.




    1. a. Clayton Antitrust Act b. Sherman Antitrust Act c. Celler-Kefauver Act d. all of the above




    1. 7. The contemporary, flexible economy relies on _____.




    1. a. rapid product development and efficient market research b. cheap labor c. quick, high-volume sales d. all of the above




    1. 8. What is one reason for the global expansion of American popular media?




    1. a. eighteen- to thirty-five-year-olds controlled most of global spending b. media technologies became cheaper and more portable c. U.S. labor unions forced manufacturers to look for international workers d. all of the above




    1. 9. Which of the following was not a successful Disney animated feature-length film?



    2. a. The Little Mermaid b. Fantasia c. Land Before Time d. Mulan




    1. 10. How much did Disney pay for ABC in 1995?




    1. a. $1 million b. $19 billion c. $19 million d. none of the above




    1. 11. The diversification strategies of media companies promote _____.




    1. a. monopolies b. oligopolies c. limited competition d. none of the above




    1. 12. Why did consumer and Latino organizations protest the proposed purchase of DirecTV by Echostar?




    1. a. they owned DirecTV stock b. in many US markets, Echostar would have gained a Spanish-language programming monopoly c. it would have created competition with local cable systems d. all of the above




    1. 13. Who said in 1937, "He who attacks the fundamentals of the American system" of commercial broadcasting "attacks democracy itself"?




    1. a. William Paley b. Ben Bagdikian c. Walt Disney d. Walter Cronkite




    1. 14. During the 2004 presidential campaign, how much is it estimated that TV stations made from political advertising?




    1. a. $1.6 billion b. $475 million c. $5.5 billion d. $325 million




    1. 15. In 2004, about _____ of the world's population could not afford most of the products advertised on American, Japanese, and European television.




    1. a. one-half b. two-thirds c. one-third d. 100 percent




    1. 16. Which of the following is an example of a media product that is supported through indirect payment?




    1. a. a radio and TV broadcast b. a daily newspaper c. a consumer magazine d. all of the above




    1. 17. What is a media market with many producers and sellers but only a few differentiable products?

    2. a. monopoly b. limited competition c. indirect payment d. oligopoly




    1. 18. What form of media generates revenue through both direct and indirect payment?




    1. a. books b. online services c. radio and TV broadcasts d. none of the above




    1. 19. In many communities, Gannett newspapers represent _____.




    1. a. local monopolies b. limited competition c. online services d. all of the above




    1. 20. Why do most radio stations feature a limited number of formats?




    1. a. because just a few firms dominate the radio industry b. because commercial broadcast radio is such a difficult market to enter c. because Microsoft controls all commercial radio in the United States d. none of the above




    1. 21. The first wave of national media consolidation began in the _____.




    1. a. 1950s b. 1960s c. 1980s d. 1990s




    1. 22. The _____ limited any corporate mergers and joint ventures that reduced competition.




    1. a. Sherman Antitrust Act b. Clayton Antitrust Act c. Celler-Kefauver Act d. none of the above




    1. 23. Government controls on business were drastically weakened during the _____ administration.



    1. a. Reagan b. Carter c. Kennedy d. Johnson




    1. 24. With the onset of international synergy, products claiming to be "made in Japan" were seen as superior, particularly _____ and _____.




    1. a. automobiles/clothing b. clothing/electronics c. automobiles/electronics d. all of the above




    1. 25. The television show _____ was the most watched program in the world by the late 1990s.




    1. a. Seinfeld b. Cheers c. Survivor d. Baywatch




    1. 26. Cultural imperialism can be described as _____.




    1. a. global popular culture b. when the styles in fashion, food, and media in one nation (such as America) shape cultures and identities in other nations c. the best way to monitor the impact of transnational economies d. all of the above



    1. 27. Unlicensed duplication of CDs, cassettes, videos, DVDs, and software is called _____.



    2. a. cultural imperialism b. piracy c. oligopoly d. all of the above




    1. 28. The _____ has made it possible for groups who address media issues that affect individual and community life to form globally.




    1. a. Telecommunications Act of 1996 b. Internet c. growth of media conglomerates d. none of the above




    1. 29. During the 2004 presidential campaign, how much is it estimated that TV stations made from political advertising?




    1. a. $1.6 billion b. $1.6 million c. $5.5 billion d. $325 million




    1. 30. The opening of markets in Asia, Africa, and Eastern Europe after the fall of various totalitarian regimes spurred the growth of _____.




    1. a. AOL b. global popular culture c. the Cold War d. native cultures




    1. (http://bcs.bedfordstmartins.com/mediaculture/pages/bcs-main.asp ?v = chapter&s=14000&n=00030&i=14030.02&o=|00020|000 30|&ns=0)



    2. II. Summary



    3. Summary 1 Read the summary of the section of Chapter 13 titled "Analyzing the media economy" and answer the multiple choice questions that follow.



    1. Analyzing the media economy

    2. The study of the economic conditions of the mass media poses a number of complicated questions. For example, does the government need to play a stronger role in determining who owns what mass media and what kinds of media products should be manufactured? Should citizen groups play a larger part in demanding that media organizations help maintain the quality of social and cultural life? Does the rapid spread of American culture worldwide smother or encourage the growth of democracy and local cultures? To begin to understand these questions, we need to learn about economic concepts in two areas: media structure and media performance.

      The structure of the media industry

    3. Three common structures characterize the media business: monopoly, oligopoly, and limited competition. A monopoly is when a single firm dominates production and distribution in a particular industry, either nationally or locally. One example of this is Microsoft, accused of monopolistic practices in the software business throughout much of the 1990s. Monopolies can also be found in local markets, such as in the newspaper business. For example, Gannett owns more than a hundred papers, most of which constitute a newspaper monopoly in their communities.



    4. An oligopoly is an economic situation in which just a few firms dominate an industry. The music and film businesses are both oligopolies, as four or five major players control the production and distribution of more than 90 percent of each of those industries. Oligopolies often add new ideas and product lines by purchasing successful independents.



    1. Limited competition, which is sometimes called monopolistic competition, is a media market with many producers and sellers but only a few differentiable products within a particular category. One example of limited competition is radio stations. There are hundreds of independently owned stations in the United States; however, most of these stations feature a limited number of formats, such as country, classic rock, or contemporary hits. Because commercial broadcast radio is such a difficult market to enter, most station managers play the few formats that attract sizable audiences.

      The performance of media organizations

    2. Economists analyze the behavior and performance of media companies by paying particular attention to the ways the media collect revenues: through direct and indirect methods. Direct payment involves media products supported primarily by consumers who pay directly for a book, a CD, a movie, an online computer service, or a cable TV subscription. Through direct payments, consumers communicate their preferences immediately. Indirect payment involves media products supported primarily by advertisers, such as radio and TV broadcasting, daily newspapers, and consumer magazines. Through indirect payments, the client is the advertiser, not the viewer, listener, or reader. Many forms of media generate revenue both ways, including newspapers, magazines, online services, and cable systems.



    3. Economists also look at many elements of the commercial process, including program or product costs, price setting, marketing strategies, and regulatory practices. For example, in 1996, critics and government agencies began reviewing the artificially inflated price of CDs. Based on the economies of scale principle, which refers to the practice of increasing production levels to reduce the overall cost per unit, the cost of CDs should have dropped. Yet it wasn't until October of 2003 that any of the five major recording companies dropped their CD prices.



    1. The mass media have been asked over the years by economists, media critics, and consumer organizations to meet certain performance criteria, such as introducing new technologies to the marketplace, making products and services available to all economic classes, facilitating free expression and political discussion, acting as public watchdogs over wrongdoing, monitoring times of crisis, playing a positive role in education, and maintaining the quality of culture. While sometimes media industries live up to these criteria, economic analyses permit citizens to examine the instances when the mass media fall short.



    1. 1. A _____ is when a single firm dominates production and distribution in a particular industry.




    1. a. oligopoly b. limited competition c. monopoly d. none of the above




    1. 2. Which of the following is a description of direct payment?




    1. a. media products supported primarily by advertisers b. media products supported primarily by consumers who pay directly c. the client is the advertiser, not the viewer, listener or reader d. all of the above




    1. 3. What is also known as monopolistic competition?




    1. a. limited competition b. monopoly c. oligopoly d. direct payment

    2. 4. What is the practice of increasing production levels to reduce the overall cost per unit?




    1. a. limited competition b. indirect payment c. direct payment
      d. economies of scale




    1. 5. Which of the following is a performance criterion that the mass media is expected to meet?




    1. a. facilitating free expression b. playing a positive role in education c. maintaining the quality of culture d. all of the above




    1. Summary 2 Read the summary of the section of Chapter 13 titled "The transition to an information economy" and answer the multiple choice questions that follow.



    The transition to an information economy

    While the first half of the twentieth century emphasized mass production, the rise of manufacturing plants, and the intense rivalry of one country's products against another's, the contemporary era emphasizes information distribution and retrieval as well as international economic cooperation. The shift to an information-driven economy began in the 1950s, when mass media companies began to market music, movies, television programs, and computer software globally. In the 1960s, the first wave of national media consolidation began, escalating into the global media mergers of the 1980s and 1990s.


    Deregulation trumps regulation

    In the late nineteenth century and early part of the twentieth century, Congress passed a variety of antitrust laws. These laws included the Sherman Antitrust Act, passed in 1890, which outlawed the monopoly practices and corporate trusts that fixed prices to force competitors out of business; the Clayton Antitrust Act, passed in 1914, which prohibited manufacturers from selling only to dealers and contractors who agreed to reject the products of business rivals; and the Celler-Kefauver Act, passed in 1950, which further strengthened antitrust rules by limiting any corporate mergers and joint ventures that reduced competition.


    In recent decades, government regulation has been denounced as a barrier to the more flexible flow of capital. The Carter administration began the deregulation progress; however, it flourished under President Reagan, when most controls on business were drastically weakened. This deregulation led to easier mergers, corporate diversification, and increased tendencies toward oligopolies. In 1996, the passage of the Telecommunications Act lifted most restrictions on how many radio and television stations one corporation could own. The act also allowed the regional telephone companies into the cable TV business and gave cable operators the right to raise cable rates with less government oversight. One example of what this means for consumers can be seen in AT&T's 1999 purchase of cable giant TCI, which showed how one megacorporation could control most of the wires entering a home and dictate both phone and cable TV pricing.

    Consolidation and mergermania

    The antitrust laws of the twentieth century have been unevenly and curiously applied, especially in terms of the media. For example, when ITT tried to acquire ABC in the 1960s, protests and government investigations sank the deal, but when GE purchased RCA/NBC in the 1980s, the FTC, FCC, and Justice Department found few problems. One of the world's biggest media deals was the Disney acquisition of ABC in 1995. Disney paid $19 billion for the company. Other large media deals in recent years include the Time Warner purchase of Turner Broadcasting in 1995 for $7.5 billion and the 2001 Time Warner merger with AOL ‒ the largest media deal in history ‒ worth over $160 billion. Media companies have been able to avoid monopoly charges by purchasing diverse types of media instead of trying to control just one medium. For example, Disney provides programming to a TV network, a cable channel, and movie theaters.


    Flexible markets

    In addition to the trend toward consolidation, today's information culture is also characterized by flexibility. This new elastic economy features an expanded service sector, which often relies on cheap labor and exploits poor workers in sweatshop conditions. This type of economy also relies on quick, high-volume sales to offset the costs of making so many niche products for specialized markets. Because 80 to 90 percent of new consumer and media products fail, a flexible economy demands rapid product development and efficient market research. To offset so many failed products, companies need to score a few hits. This system heavily favors large companies that can absorb the losses incurred from failed products more readily than smaller businesses.


    Global markets and specialization

    After World War II and throughout the 1950s, labor unions made strong gains on behalf of workers. With the shift to an information economy, many manufacturing jobs (such as making CD players and TV sets) were exported to avoid the high cost of U.S. labor, and by 2004, many firms were looking to less economically developed countries that were short on jobs to supply cheap labor. In many countries today, most workers cannot afford the stereo equipment and TV sets they are making primarily for U.S. and European markets. With this globalization also comes the extension of synergy to international levels. For example, "made in Japan" went from being a label of inferiority to a mark of superiority, especially in the automobile and electronics industries.


    This new globalization has coincided with the rise of specialization. For example, in the 1980s, when television was confronted with VCRs and cable, programmers began niche marketing targeting eighteen to thirty-five-year-old viewers who controlled the bulk of consumer spending. Younger and older viewers, increasingly abandoned by the networks, were sought by other media outlets, like magazines (Seventeen and Modern Maturity) and cable channels (Nickelodeon for younger viewers; A&E and Lifetime for older viewers and women).

    The global expansion of America's popular media occurred for two reasons. First, media technologies became cheaper and more portable, allowing for proliferation both inside and outside national boundaries. Second, American VCR, CD, and TV manufacturers lowered costs by moving production plants outside the country. In addition, global manufacturing offered companies that lost money on products at home the opportunity to profit in the international market. For example, the television show Baywatch, which was cancelled by NBC, went into first-run syndication, was exported and translated into other languages, and by the late 1990s was the most-watched program in the world.


    Disney: A postmodern media conglomerate

    Disney is a perfect example of media economics in the twentieth century. Walt Disney moved to Hollywood and found his niche creating cartoons, among them the first sound cartoon in the late 1920s (featuring Mickey Mouse) and the first feature-length cartoon in 1937, Snow White and the Seven Dwarfs. During Disney's first economic period — from the late 1920s to the late 1940s ‒ the company barely broke even, although the studio produced the two top-grossing films of 1940, Fantasia and Pinocchio, which each made more than $40 million. This was because such cartoon projects took time and commanded the company's entire attention.

    During Disney's second economic period ‒ encompassing the 1950s and early 1960s ‒ the company diversified and expanded into nature and feature-length documentaries. The company also embraced television during this period, launching a long-running prime-time show. Then, in 1955, Disneyland opened in Southern California. Eventually the theme parks would produce the bulk of the studio's revenues.
    The death of Walt Disney in 1966 triggered a period of decline for the studio, and Disney's third economic period was not initiated until 1984, when a new management team, led by Michael Eisner, brought the company to even greater financial success and diversification. The newly created Touchstone division found success with Who Framed Roger Rabbit?, a movie that reinvented the live-action cartoon. Disney also had a string of animated hits in the late 1980s and 1990s, including The Little Mermaid, Mulan, and The Lion King.
    Disney also expanded globally in the 1980s and 1990s, opening a successful theme park in Japan, signing a ten-year deal with Russian television, and marketing cartoons to Chinese television. In addition, EuroDisney (now called Disneyland Paris) opened in France in the early 1990s. Though the French did not initially embrace the theme park, it began to finally make money after the mid-1990s. In 1997, Disney's 24-hour cable channel was introduced to twenty-three countries in the Middle East and North Africa via satellite.

    Disney epitomizes the synergistic possibilities of media consolidation. By 2004, Disney could produce an animated feature for theatrical release and home video, spin off a cartoon version of the movie and place it on Saturday morning television lineup, publish a book version of the movie, and place the "making-of" version on cable or in a children's magazine. Characters from the movie could become attractions at Disney's theme parks or incentives for buying a Happy Meal from McDonald's. Testifying to the success of this type of synergy, by 2004 Disney was the world's second-largest media conglomerate.


    1. When did the shift to an information-driven economy begin?
    a. in the late 1800s b. in the 1950s c. during the 1980s and 1990s d. in the early part of the nineteenth century
    2. Which of the following is an example of an antitrust law?
    a. Sherman Antitrust Act b. Clayton Antitrust Act c. Celler-Kefauver Act d. all of the above

    3. How have media companies been able to avoid monopoly charges?


    a. by purchasing diverse types of media b. by trying to control just one medium c. through the Telecommunications Act of 1996 d. none of the above
    4. Between _____ and _____ percent of new consumer and media products fail.
    a. 50/60 b. 10/20 c. 80/90 d. 30/40
    5. What happened during Disney's second economic period?
    a. the company barely broke even b. the company diversified, expanding into documentaries c. the company was in decline d. the company expanded globally


    1. Summary 3 Read the summaries of the section of Chapter 13 titled "Social issues in media economics" and "The media marketplace and democracy" and answer the multiple choice questions that follow.



    Social issues in media economics

    The media marketplace and democracy

    The mergermania we have witnessed in recent years between companies like Time Inc. and Warner Communications and AOL and Time Warner has accompanied stripped-down regulation, which has virtually suspended most ownership limits on media industries. One critic of such media mergers, Ben Bagdikian, worries about a limited number of companies in charge of the abundance of media products in the market. He fears a marketplace in which a handful of media moguls wield a disproportionate amount of economic control.



    The limits of antitrust laws

    American antitrust laws have been easily subverted since the 1980s as most media companies diversify among different product lines, never completely dominating a particular industry. These diversification strategies promote oligopolies, and this kind of economic arrangement makes it difficult for many products offered outside the oligopoly to compete in the marketplace.

    The current consolidation of media owners has limited the number of independent voices and owners; however, occasionally some independent owners raise issues that aid the Justice Department and the FTC in antitrust cases. One example of this is how consumer groups rose up to oppose the Echostar acquisition of DirecTV in 2001. Due in part to protests by groups who stated that Echostar would have gained local monopolies in Spanish-language programming, the FCC blocked the merger in 2002 to protect the public interest.
    Because antitrust laws try to curb national monopolies, most media monopolies today operate locally. For example, almost every cable company has monopoly status in its local community and can decide which channels are made available and what rates are charged. In addition, antitrust laws have no teeth globally, and though there has been discussion about enforcing international copyright laws, no international antitrust rules exist.

    Consumer choice vs. consumer control

    Lack of public debate or involvement surrounding the tightening oligopoly structure of international media dates back to the 1920s and 1930s. During that era, commercial radio executives succeeded in portraying themselves as operating in the public interest and labeled their noncommercial counterparts in education, labor, and religion as the voices of propaganda.


    Soon, the political ideas of democracy became closely allied with the economic structure of capitalism. This is problematic because, as many economists point out, capitalism is arranged vertically, with powerful corporate leaders at the top and hourly wage workers at the bottom. However, democracy should represent a more horizontal model in which each individual has an opportunity to have his or her voice heard.
    Throughout the Cold War, it became increasingly difficult to criticize capitalism. Any attack on capitalism became an attack on a free marketplace, which in turn appeared to be a criticism of free speech. Longtime CBS chief William Paley said in 1937: "He who attacks the fundamentals of the American system" of commercial broadcasting "attacks democracy itself."
    Cultural imperialism

    The influence of American popular culture has created much debate in international circles. On one hand, the global spread of media software and hardware has made it harder for political leaders to secretly repress dissident groups because so much police and state activity can be documented on video. On the other hand, American styles in fashion, food, and media are shaping cultures and identities of other nations — what many critics have identified as cultural imperialism. While many indigenous forms of media culture (like Ireland's Riverdance) are popular, U.S. dominance in mass media puts a burden on countries trying to produce their own cultural product.

    Supporters of American pop culture argue that a universal popular culture creates a global village and fosters international communication, and that because some of our culture emphasizes challenging authority and tradition, it creates an arena in which citizens can raise questions. However, some of the harsher critics believe that American cultural imperialism hampers the development of native cultures and negatively influences teenagers, who abandon their own rituals to adopt the tastes of their American counterparts.

    Global popular culture was spurred by the opening up of markets in Asia, Africa, and Eastern Europe after the failure of various totalitarian regimes in the 1980s. Around the same time, economic piracy developed worldwide with unlicensed pilfering and duplicating of cassettes, CDs, videos, DVDs, and software. Authorities are loath to stop such pirating as it represents a source of jobs. In fact, one of the greatest concerns regarding a global economic village is that in 2004, about two-thirds of the world's population could not afford most of the products advertised on American, Japanese, and European television. Some worry that exposure to these products will elevate expectations among people whose standards of living are not routinely portrayed in contemporary media.


    The media marketplace and democracy

    The best way to monitor the impact of transnational economies is through vigorous news attention and lively public debate. Unfortunately, this process has been hampered recently by severe cutbacks by news organizations in the number of reporters assigned to cover international developments. Also of concern is the impact of mergers on news operations. The multinational corporations that continue to control production and distribution of media products have the capacity to use major news resources to promote their products and determine national coverage.


    While the promises of multichannel cable systems and the Internet may go the way of network television and radio as these systems are rapidly being bought or controlled by conglomerates, one bright spot in the current economic media atmosphere is the number of alternative voices that can still be found in mass media. Independent and alternative producers, artists, writers, and publishers often tap into social concerns that are not normally discussed in corporate boardrooms. In addition, a number of corporations encourage the development of local artists who might have the capacity to transcend the regional or national level and become the next global phenomenon.

    A key paradox of the Information Age is that for economic discussions to be meaningful and democratic, they must be carried out in the popular media as well as in educational settings; however, public debates about the structure and ownership of the media are often not in the best economic interests of media owners. In some places, local groups and consumer movements are addressing media issues that affect individual and community life, and the Internet has made it possible for such groups to form globally. By understanding media economics, we can make a contribution to critiquing media organizations and evaluating their impact on democracy.


    1. How have American antitrust laws been subverted since the 1980s?


    a. media companies diversify among product lines, never dominating a particular industry b. media companies simply ignore antitrust laws, dominating whichever industries they choose c. media companies buy out all independent competition d. none of the above
    2. In 2001, consumer groups rose up to oppose the _____ buyout of _____.
    a. AOL/Time Warner b. Amazon/Barnes & Noble c. Echostar / DirecTV d. Ingram Book Group/Amazon
    3. Lack of public debate about the oligopoly structure of international media stems from the _____.
    a. 1950s attacks on capitalism b. 1920s and 1930s radio executives c. Cold War d. none of the above
    4. Supporters of American popular culture claim _____.
    a. because American culture emphasizes challenging tradition and authority, it creates an arena in which citizens can raise questions b. teenagers in other nations abandon their own rituals to adopt those of Americans c. it hampers the development of native cultures d. all of the above
    5. Global popular culture was spurred by _____.
    a. the merger between AOL and Time Warner b. the opening up of markets in Asia, Africa, and Eastern Europe after the fall of various totalitarian regimes c. the 2000 American presidential election d. none of the above
    (http://bcs.bedfordstmartins.com/mediaculture/pages/bcs-main.asp ?v=chapter&s=14000&n=00030&i=14030.02&o=|00020|000 30|&ns=0)


    1. III. Text reviewing



    2. Review the sections "Analyzing the media economy", "The transition to an information economy", "Social issues in media economics" and "The media marketplace and democracy" in your textbook. When you are ready, write a brief paragraph-length response to each of the questions that follow.

    1. Describe the three common structures that characterize the media business.

    2. Describe the two ways media collect revenues.

    3. What were the reasons for the global expansion of America's popular media?

    4. Describe the three economic periods of Disney.

    5. Describe how the political ideas of democracy became closely allied with the economic structure of capitalism.

    6. Describe some of the pros and cons of America's cultural imperialism over global culture.


    (http://bcs.bedfordstmartins.com/mediaculture/pages/bcs-main.asp ?v = chapter&s=14000&n=00030&i=14030.02&o=|00020|0003 0|&ns=0)
    IV. Focus Questions (1)
    1. What does this photo tell you about the Disney corporation?
    2. In what ways has Disney influenced our national and global culture?


    http://qm3-assessments.bfwpub.com/resources/campbell5e/visual/ch13_1.jpg

    Questions

    1. Describe how Disney epitomizes the synergistic possibilities of media consolidation.

    2.Describe the global expansion of Disney in the 1980s and 1990s.
    Focus Questions(2)

    1. What does this table tell you about the spending habits of Americans?


    2. Which category of spending saw the greatest rise during that four-year period? Why?

    http://qm3-assessments.bfwpub.com/resources/campbell5e/visual/ch13_2.gif

    Questions
    1. Describe the two ways in which media companies collect revenues.

    2. What are some of the performance criteria the mass media have been asked to conform to by economists, critics, and consumer organizations?


    (http://bcs.bedfordstmartins.com/mediaculture/pages/bcs-main.asp ?v = chapter&s=14000&n=00030&i=14030.02&o=|00020|000 30|&ns=0)
    V. Vocabulary Exercises
    A. Match the words (1-25) with the definitions (a-y).


    1. the economic process of increasing production levels so as to reduce the overall cost per unit

    1. phony

    2. prevent something from happening, being expressed or continuing

    1. inflate prices

    3. a sudden increase in number or amount

    1. rates of charge

    4. a market with many producers and sellers but only a few differentiable products within a particular category

    1. economies of scale

    5. not real and intended to trick people; fake

    1. penetration to a market

    6. a special permission to do something that is not usually allowed

    1. stifle

    7. the final line in the accounts of a company or organization, which states the total profit or loss that has been made

    1. keep pace with

    8. to make a number or prices higher than it should be

    1. limited competition

    9. to develop or progress at the same rate as something else

    1. jeopardize

    10. the payment of money, primarily by consumers, for a book, a movie on online computer service or a cable TV subscription

    1. bottom line

    11. to put something such as a plan or system in danger being harmed or damaged

    1. proliferation

    12. he habit always to buy a product with the same name, made by the same company

    1. dispensation

    13. someone who starts their own business, especially when this involves seeing a new opportunity

    1. direct payment

    14. a person or organization responsible for making certain that companies obey particular standards and do not act illegally

    1. brand loyalty

    15. to be as good as something

    1. entrepreneur

    16. an organizational structure in which a few firms control most of an industry’s production and distribution resources

    1. recoup

    17. to succeed in selling products

    1. live up to expectations

    18. to get back money that you have spent or lost

    1. watchdog

    19. the promotion and sale of a product throughout the various subsidiaries of a media conglomerate

    1. oligopoly

    20. an amount or level of money for something, especially a service or activity

    1. synergy





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