-Caveat Lector- <A HREF="http://www.ctrl.org/"> </A> -Cui Bono?- Dave Hartley http://www.Asheville-Computer.com/dave The Philadelphia Inquirer January 16, 2000 WHEN ONLY GIANTS RUN THE MEDIA By Robert McChesney The merger of America Online and Time Warner is bad for consumers and bad for citizens. It hammers the last nail in the coffin of the argument that the Internet will democratize the media by giving ordinary citizens the ability to compete in the marketplace against the media giants. You and I don’t stand a chance against AOL-Time Warner or other conglomerates. There may be millions of underfunded obscure Web sites, but the commercially viable journalism and entertainment in the digital future are going to be controlled by a few massive media giants. Yes, it might be faster now and more convenient. But it also may be costly. And a handful of media executives will still be setting your information diet. The AOL-Time Warner merger - the largest in history - is the culmination of a stunning wave of concentration of ownership in media and communication industries over the last decade. There were 12 major telecommunication companies in 1996; today there are six, and many of them have moved aggressively into new areas. AT&T, for example, is the largest cable television company in the nation. The media system is now dominated by eight or nine massive firms, with an additional 12 to 15 rounding out the system. These two dozen profit-driven companies, owned and managed by billionaires, account for nearly the entirety of the U.S. media culture. This goes against any notion of a free press in a democratic society. The merger is also part of the related trend toward “convergence,” meaning that with the rise of digital communications, the dominant firms in media, computing and telecommunications are combining into supercolossal transnational corporations, the likes of which we have never imagined. This deal, which unites the largest media firm with the dominant Internet firm, will in all likelihood trigger another round of mergers that will leave the entire realm of communication under the thumbs of a handful of companies. The Internet is accelerating the pace of concentration because firms know that in times of rapid technological change, it is far better to be very big and have less competition than to be smaller and have more competition. As citizens, we should deplore this concentration of media power. It is dangerous when so few people control what we see and hear. And these giants have enormous power over not only the economy but the political system as well. One cruel irony is that the government has handed the Internet over to the private sector. Entrepreneurs like Steve Case did not invent the Internet. It is a direct result of government- sponsored innovation. The government created and subsidized the Internet and its predecessors for three decades. Private-sector firms wanted no part of it because they couldn’t figure out how to make a buck from it. Then, in the early 1990s, with barely a shred of public debate or deliberation and with virtually zero media coverage, the Internet’s trunk lines were privatized, the prohibition against commercialism was ended, and, in effect, cyberspace was turned over to corporate America. It’s an extraordinary tale. The public does the spade work and takes the risks; Wall Street takes control and rakes in all the profits. The public gets nothing in return except a tidal wave of public relations extolling the virtues of the corporate-run digital era. Most of the media treat all of this as a business story, in which the control over media and communication rightly resides on Wall Street. Only rarely is it asked how this affects consumers. Almost never is the even more fundamental question asked: How this affects us as citizens. It is a telling comment on the decline of democracy in our culture that so blindly condones greed and inequality. So this is where we are at the dawn of the new century: Our communication system is changing at a bewildering pace, and those with the most money are at the controls, regardless of the social and political implications. They are driving 100 miles an hour down an unlit highway and nobody knows what lies ahead. Meanwhile, the government seems willing to do everything it can to expedite the process. This is a dangerous - and highly undemocratic - way to proceed. And it is in all of our interest that this change. ____________ Robert McChesney ([EMAIL PROTECTED]), a professor at the Institute of Communications Research at the University of Illinois, is author of “Rich Media, Poor Democracy: Communication Politics in Dubious Times.” <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are not allowed. Substance—not soap-boxing! These are sordid matters and 'conspiracy theory'—with its many half-truths, misdirections and outright frauds—is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. 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