EOTO 2 Media Consolidation and the Sherman Antitrust Act

What is Media Consolidation?

Media consolidation is the process in which smaller media outlets are taken over or merge with larger corporations. While media consolidation has the ability to increase an audience’s reach, there is an equal chance for it to not only limit the variety of voices and freedom of the press, but affect the concentration of the media’s power. 

The Positives of Media Consolidation 

Through analysis into the key benefits of media consolidation, it is apparent that smaller media outlets gain traction through merging with larger outlets. These smaller outlets now have the opportunity to broadcast on both a national and global scale. With regard to the advertisers, they benefit due to the larger target audience they’re able to reach across the world.
It should be noted that larger media outlets will more than likely have access to larger amounts of money and resources to invest in hosts, commentators, and content creators. With that in mind, this presents smaller media outlets the opportunity to not only produce a variety of content (including engaging talk shows, news programs, and entertainment series), but further enables them to maintain a competitive edge in a growing media marketplace.

The Negatives of Media Consolidation

One of the biggest concerns that media consolidation presents (aside from diversifying voices), is the limitations placed on individuals and corporations with regard to having their own beliefs/opinions. The amount of perspectives available for the public to choose from is decreased and the variety of content is further narrowed as smaller outlets are taken over by larger corporations. Large media outlets tend to prioritize content that will attract the most amount of viewers possible, which consequently neglects less popular but equally important topics. Content from smaller media outlets are often discarded for more mainstream content, which can lead to the publication of media that does not appeal to the widest possible audience.

Media consolidation has been shown to contribute to the rising subscription fees for access to content which negatively affects consumers. Additionally, consumers are being presented with fewer options for region-specific information due in part to larger networks reducing the amount of local media content.
While all of this information is bad enough on its own, it only gets worse when considering the massive impact journalists face. Larger corporations have been shown to not only alter but completely trash journalists’ stories because the content does not align with the corporations values or opinions; this is yet another example of how limited the freedom of the press has become. Media Consolidation also leads to fewer job opportunities for journalists because of the access to advanced technology that larger corporations have.

The Sherman Antitrust Act and Media Consolidation

The Sherman Antitrust Act, passed in 1890,  was put in place to prevent/avoid the possibility of monopolies by making it illegal for businesses to engage in practices that limit competition. In theory, the act prevents media consolidation from occurring by stopping large corporations from controlling the majority of the media marketplace. However, the Sherman Act does not apply the same way to media outlets.
The First Amendment, which guarantees freedom of the press, enables the media industry to be treated differently. The right to free expression, which leads to a diverse marketplace of ideas, should be considered when applying antitrust laws to the media. As a result, media consolidation is sometimes allowed to proceed even if it limits competition, granted it avoids creating a monopoly within the marketplace.

Conclusion

Media consolidation has both opportunities and consequences for media outlets. It has the ability to expand audience reach, improve content quality, and provide financial resources for smaller media outlets. Consequently, the variety of viewpoints is limited with regard to journalistic freedom. The spread of information is also threatened when viewers cancel their subscriptions due to the increased service cost when these smaller outlets merge with larger corporations. While the Sherman Antitrust Act has an important role in preventing monopolies, it's fair to say that its application into the media industry is far from similar in other types of businesses. Ultimately, a balance between the economic benefits of consolidation and the need to protect a diverse media marketplace is essential for ensuring freedom of the press.