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Comcast and Time Warner just can't control themselves

Comcast and Time Warner are awaiting regulatory responses to their application to merge and become the dominant player in cable television provision in the U.S. If permitted, the combined firm will control about 2/3rd of the broadband cable market and about 40% of the entire broadband market in the U.S. (which is used for both cable and the Internet). Independently, the two firms both have reputations for poor installation and repair services, poor billing and collection practices, high prices, and price increases above inflation levels. No one seriously believes their claims that the merger will be pro competitive, lead to more consumer choice, better service and lower prices. The companies have not been helping their case by appearing to be operations out of control when it comes to their customers.   In recent months customers seeking services have been kept on the phone for hours and forced to undergo forms of psychological abuse while they tried to get the changes they wished....

The critical distinctions among news provision, information provision, and journalism

The explosive growth of digital news and information providers is forcing news organizations to recognize their diminishing significance to users of digital devices, but many remain bewildered about how to respond. This challenge is difficult because many news personnel do not make distinctions among news provision, information provision, and journalism. Consequently, the strategies of many news organizations approach each as equally valuable. They are not. News provision involves providing reports about contemporary events and developments locally, nationally, and globally. Information provision involves providing non-news content that meets audience interests and needs. Journalism involves researching and producing news, features, and analytical stories based on professional practices and norms. In the past, news organizations tended to have strong control over journalism, news provision, and information provision in their markets. However, they began losing that control wit...

Ownership transparency is not enough to solve media performance gaps

Media ownership transparency has become a goal of media reform advocates on both sides of the Atlantic, but is often simplistically presented as a solution to problems in media performance. As I have shown in my research over time, it is not the form of ownership that matters, but the owners themselves. There are good and bad corporate owners, good and bad private owners, good and bad family owners, and good and bad foundation owners. And many owners whose media perform badly on issues of social service and public interest don’t care if the public knows who they are. This is not to oppose making it easier for the public to know who the owners are—in some cases (especially in southeast Europe) owners sometimes hide behind shell companies, investment firms holding their shares, and even individuals fronting for them. Gaining transparency may help identify consolidation and concentration for antitrust and pluralism analyses, but lifting those veils alone is not going to solve the...

Loss of a competitive market is afflicting U.S. single-copy magazine distribution

Single-copy magazine distribution is undergoing a remarkably unheralded transformation and it has enormous implications for both publishers and consumers.   Each year about 3 billion copies of magazines are distributed to 150,000 retail outlets within a large and complex distribution channel. This is extremely important to publishers because it produces about one quarter of circulation revenue and is used to promote subscription and introduce new titles.   In simple terms, the system operates by publishers selling copies to wholesalers and wholesalers reselling the copies to retailers. However, retailers return unsold copies to wholesalers for a full refund and wholesalers return them to publishers for a similar refund.   Because of the large number of titles, copies, and retailers involved, and the geographic scale of the country, publishers and retailers have sought to minimize their effort, create economies of scale, and reduce transaction costs.   Publishers cont...

What we now know about news and news revenue in the digital world

There has now been enough experience and research to draw conclusions about how news is transitioning to the digital world and what it means for news companies. If one objectively views the developments, one sees that the current developments are is neither as bleak as some journalists portray them nor as rosy as some digerati frame them. Instead, we have reached a point where digital news is becoming workable in commercial terms, but is not yet mature enough to erase the industry's business challenges. News consumption in the digital environment is significant and audience reach is now 5 to 10 times larger across digital platforms than for print editions of most newspapers.   Many large news organizations are now generating 15-25 percent of their revenue from online, tablet, and smartphone platforms and benefits are starting to appear for some mid-sized players as well. If we look at what has occurred in the past decade, there are some important lessons to embrace about news ...