Tag Archives: cable television

Regulating Ownership of Network Programming: The Rise of Major Media Conglomerates

Category: Ownership & Control

Issue: Regulating Ownership of Network Programming

Originally, the FCC’s fin-syn system was implemented in 1970, which was the FCC’s financial interest and syndication rules for the regulation of ownership and control of television programming.  These fin-syn regulations were enacted to limit the “ability of the 3 major TV networks (ABC, CBS, NBC) to acquire financial interests or syndication rights in the television programming” as well as “to limit network control over television programming and thereby encourage the development of a diversity of programs through diverse sources of program services. (FCC 1995)” (Croteau & Hoynes 87).

However, in 1993 the U.S. district court ruled in favor of relaxing the fin-syn regulations so that the networks were not subject to these regulations because the competition between cable stations and the materialization of new networks prevented the large media conglomerates from monopolizing production and syndication (Croteau & Hoynes 87).  The U.S. district courts ruled this way because of the new changes in technology that started happening in the early to mid 1990’s.

Now, networks can acquire financial interests in and syndication rights to all network programming. This encouraged vertical integration; networks turned to studios that they owned or their corporate partners owned to produce more of their programming.  The large media conglomerates argued that “monopolistic control is no longer possible because we live in a diverse world with many options” (Croteau & Hoynes 88).  However, this is not the case.

By relaxing the old fin-syn regulations, major media conglomerates that owned many media outlets flourished, especially those that owned their own studios.  Independent and smaller media producers were constrained and even harmed by the relaxation of the old fin-syn regulations.  This is because major media conglomerates, like ABC, NBC, Fox, and CW were able to produce 90% of the series on major networks as well as being able to have financial interests in half of all of the prime-time programming. (Croteau & Hoynes 88).

The main debate between structure and agency in this case is that the “structure that protects the media industry’s copyright claims also constrained it’s ability to produce and resell its products” (Croteau & Hoynes 88). While “the agency of the media industry is seen in its ability to promote changes that favored the major networks” (Croteau & Hoynes 88).  Basically this debate between structure and agency in this case is that the same regulatory structure that protected the media industry copyright laws made it harder for those media industries to produce and sell its products while the actions of the media industry started to create regulations to favor the larger media conglomerates.

The regulation in question is the FCC’s fin-syn regulation, which was uplifted in 1993, which ruled that networks were not subject to this regulation anymore because of the new advancements in technology.  If the regulation was written in favor of the ‘other side,’ which in this case would be independent and smaller media producers, then more small and independent networks would still have the ability to make independent TV and cable stations.  The smaller networks would then have a equal chance against the large conglomerates networks that take up a lot of the prime-time programming slots because it does not cost as much for them. This is because the major media conglomerate vertically integrated with their studios, that either they owned or that their corporate partners owned, to produce more of their programming.

A suggestion I have for altering the regulation to improve them would be to go back to something similar to the FCC’s fin-syn system because the FCC’s fin-syn system initially imposed constraints on networks (mainly large media networks) so they could not monopolize or oligopolize network programming.  My recommendation is to impose a regulation that does not allow network companies, large or small, to acquire all financial interests and syndication rights to all network programming.  This would make the large media conglomerates not be able to use their own or their partners’ studios to produce more of their programming, which would require the large media conglomerates to pay another studio to produce their programming.  I think that this would not necessarily equal the playing field of network programming between small and large networks because the major media conglomerates already have a lot of money, so they are probably still able to take up a lot of the networking and prime-time slots, while the small and independent media producers were harmed from the inaction of the fin-syn regulations, and probably can not afford to show their programming in prime-time slots.  However it would give the small or independent media producers a higher chance of being able to get their programming on television, and therefore steadily making more money so that they can compete for TV time slots.

Source Cited:

Croteau, D. & Hoynes, W. (2014). Media/Society: Industries, Images, and Audiences. Thousand Oaks, California. SAGE Publications.

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Viacom

Viacom is one of the largest conglomerates in the world, containing many popular cable and movie networks.  Here are the following companies that Viacom owns:

Cable Networks

Atom Entertainment

AddictingGames

Atom.com

AtomUploads.com

Logotv.com

newnownext.com

Shockwave

BET Networks

BET

BET Event Productions

BET Gospel

BET Hip Hop

BET International

BET Mobile

BET Pictures

Centric

CMT

CMT Loaded

CMT Mobile

CMT On Demand

CMT Pure Country

CMT Radio

Colors

Comedy Central

Jokes.com

GameTrailers

GT Marketplace

GoCityKids

Logo

AfterEllen.com

AfterElton.com

MTV Networks

MTV

MTV Books

MTV Hits

MTV Jams

MTV2

MTVN International

Flux

Game One

Lazona.com

MTV Boombox

MTV OVERDRIVE

MTV Revolution

QOOB

TMF (The Music Factory)

Tr3s: MTV, Musica y Mas

VIVA

mtvU

mtvU.com

RateMyProfessors.com

Neopets

Nick at Nite

Nick Jr.

Nickelodeon

The Click

Nick Arcade

Nick GAS

Nickelodeon Consumer Products

Nicktoons Network

TeenNick

Palladia

ParentsConnect

Quizilla

Spike TV

Spike Filmed Entertainment

TV Land

VH1

VH1 Classic

VHUno

Vspot

Viacom International Media Networks

Film

Paramount Pictures Corporation

MTV Films

Nickelodeon Movies

Paramount Animation

Paramount Home Entertainment

Paramount Pictures

Paramount Vantage

Viacom Digital

EPIX

TheGodfather.com

iCarly.com

TheLastAirbenderMovie.com

PetPetPark.com

SouthParkStudios.com

Other

Rainbow Group (Minority Interest)

Before exploring Viacom, I had no idea how many companies were running underneath it.  Honestly, I was surprised.  I learned that Viacom is a company that definitely relies on advertising to fund their many channel outlets.  Typically, I think that they air different commercials targeting different audiences on their various channels (for example, airing acne commercials on MTV or airing commercials for new toys on Nickelodeon.)  I also learned, from Viacom’s annual report, that Viacom intakes fees from cable companies, just for being officially attached to the conglomerate.  I think that Viacom is a large enough company already, but it may benefit Viacom if they were to horizontally integrate by possibly picking up some music media outlets as well.  Mainly, Viacom distributes film and television shows to the public via various outlets like Paramount or Cable Television networks.  I think that they do a great job in running their company, but some of their television networks (like MTV channels) are losing their popularity over the years.  They are synergistic in that Viacom works with various tv channels and shows, regardless of the content.  For example, they run Southparkstudios.com, which airs one of my favorite shows of all time.  However, Viacom also airs children’s tv shows on cable television and also iCarly.com, a teen show.  Viacom works well with both adult and children’s content, in my opinion. I feel that since Viacom picked up all of the TV networks, it is really focusing on advertising as a point of business, so that they can fund their projects for Paramount or other movies.  It is good that they do not run legitimate news stations, because I feel that those stations would be riddled with advertising focusing on the consumer instead of informing the public on the actual news.

I got this information from the Columbia Journalism Review and Viacom’s website:

http://www.cjr.org/resources/?c=viacom

http://ir.viacom.com/secfiling.cfm?filingID=1193125-12-471870&CIK=1339947

http://www.viacom.com/