TEMPLATE 4: The Lesson Structure

Module No. and Module 4: Communication Media and Economics

Title
Lesson No. and Lesson 2: Communication Media Ownership Structures and Systems
Title
Learning Outcomes 1. Identify the nature of media ownership structures and
systems.
2. Describe how media industry is structured
3. Show the intricacies of the complexities of media systems.
Time Frame 2 hours (approximately 2 meetings)
Introduction
The lesson will introduce students to the nature of media industry,
how it is structured, and how the complex operations work well
within the organization. Likewise, the students will explore issues
concerning people who control communication industries. Also,
they will discover the challenges that these big corporations face,
particularly in running smoothly. Hence, learners will appreciate
critically the impact of communication in the context of economics
which can be considered salient in running and maintaining lead
against competitors while maintaining productive partnership with
other private organizations and the government.

Activity To better explore the complex world of media ownership structures

and Systems, observe the events that greatly affect our daily
activities, may it be consciously or unconsciously. Take note that
these impact us personally or shared globally. Check these out.

A. As a precursor to the main topic, contemplate on the following:

 Perhaps you own a cellular phone, with load, free data,
and could access the social media sites to connect with
your friends or must have had posted or shared
something in social media
 Clearly, you know who owns Facebook, who has
trending videos, and thousands of Instagram or Twitter
followers.
 Check how often you have had listened to AM or FM
frequencies over your radio.
 If you have free channels on tv, you might just have
missed a favorite channel lately.
 Yet, if you have cable connections, you must have
tuned-in to at least more than 50 channels
 Within the country, you could have identified national
networks that broadcasts worldwide.
 By checking on the international media channels, you
 could have watched the news from around the globe
24/7
 You must have observed which channels focused more
on news, entertainment, sports, leisure, showbiz, human
interests, or knowledge-oriented, etc
 With the numerous array of choices, you must have
wondered how much information greatly awaits you,
just depends on your interest or somebody interests
within the family or group in your place/residence.

Among these observations, compose a 300-word descriptive essay

about your experience using media communications.
Having access to media communications is like having a really
useful instrument that broadens my knowledge of the world! It
resembles a magic box with a screen that displays tales, images, and
films for me.

I can watch entertaining cartoons, discover new places, and even

learn about animals when I use media. It’s as like I have a window
to the entire globe open before me!

However, there are also certain things to be cautious about. I

discovered that not all of the information presented on screens is
reliable, thus it’s critical to confirm the information with adults and
educators.
The nicest aspect is that media allows me to communicate with my
friends and family as well! Even though they are far away, I can still
see their faces and hear their voices. It’s similar to owning a talking,
amazing image!

Every time I hit a button when using media, it’s like going on a
huge adventure. I can learn new things, interact with fascinating
people, and enjoy myself greatly. It’s really fantastic to have a
mystical storyteller in my hands, in my opinion!

B. With the first activity being done, figure out how you can fill in
the structure below.
Using the diagram, create your own media organization with
corresponding ranks or positions within the company. After
completing the structure, describe their specific functions in the
system using a simplified matrix.

Position Function/Duties

President/CEO Sets the overall vision and

direction for the media
organization. Manages high-
level decisions and ensures the
company’s success.

Editor-in-Chief Oversees editorial direction,

manages the editorial team, and
ensures the quality and
coherence of content.

Content Manager Coordinates content creation,

assigns tasks to journalists and
reporters, and ensures timely
delivery of articles.

Journalists/Reporters Researches and writes articles,

conducts interviews, and
generates content in line with
the editorial guidelines.

Graphic Designer Creates visual elements for

articles, such as images,
infographics, and layouts,
enhancing the overall
presentation.

Social Media Manager Manages social media

accounts, creates engaging
content, and interacts with the
audience to increase visibility
and engagement.
 Technical Support Specialist Handles technical issues,
ensures smooth operation of
the website or platform, and
troubleshoots any technical
glitches.

Sales and Marketing Promotes the media

Representative organization, secures
advertising deals, and
collaborates with partners to
increase revenue.

Analysis Activity 1.

Using the circles above, label how media ownership is graded by its
coverage and audience scope in the country. Start at the center as
the largest covering over larger mileage. Take note that in graded
membership, the center is always the most popular.

1. **Center (Inner Circle):** This represents the most popular and

widely recognized media organization with extensive coverage
across the entire country. It typically has a broad audience scope
and reaches a large percentage of the population.

2. **Intermediate Circle:** Moving outward from the center, this

could represent media organizations with a substantial but
somewhat more limited coverage. They might have a strong
presence in certain regions or cities, catering to a significant
audience but not as extensive as the center.
3. **Outer Circle(s):** These circles could symbolize media
organizations with progressively narrower coverage and audience
scope. They might be regional or local outlets that focus on specific
areas or communities, reaching a smaller but more targeted
audience.

4. **Peripheral Areas:** Beyond the outer circles, you may have

media outlets with the smallest coverage and audience scope. These
could be local or community-based media that serve specific niches
or neighborhoods.

Activity 2

Based on observed scope and nature of media corporations, provide

a short description of each of the industries:
1. CNN
2. ESPN
3. GMA 7
4. TV 5
5. National Geographic
6. Facebook
7. Youtube
8. Twitter
9. Philippine Daily Inquirer
10. DZMM Teleradyo
1. **CNN (Cable News Network):**
CNN is a global news organization known for its comprehensive
coverage of news and current affairs. It operates as a cable and
satellite television channel, delivering breaking news, analysis, and
feature stories on a wide range of topics worldwide.

2. **ESPN (Entertainment and Sports Programming

Network):**
ESPN is a prominent sports media conglomerate, providing
extensive coverage of various sports events, news, and analysis. It
includes television channels, digital platforms, and a magazine,
catering to a diverse audience of sports enthusiasts.

3. **GMA 7 (GMA Network):**

GMA 7 is a major television network in the Philippines, offering a
variety of entertainment and news programs. It covers local and
international news, drama series, variety shows, and more, making
it one of the leading broadcasters in the country.

4. **TV 5 (TV5 Network Inc.):**

TV 5 is another major television network in the Philippines,
offering diverse programming including news, entertainment, and
sports. It has a broad audience base and aims to provide innovative
content to viewers.

5. **National Geographic:**
National Geographic is a global brand known for its focus on
science, exploration, and cultural documentaries. It encompasses a
television channel, a magazine, and digital platforms, showcasing
content related to nature, science, and the human experience.

6. **Facebook:**
Facebook is a social media platform connecting people globally.
While not a traditional media corporation, it serves as a significant
player in the digital media landscape, allowing users to share
content, connect with others, and access news and information.

7. **Youtube:**
YouTube is a video-sharing platform that has become a prominent
space for content creators. It hosts a vast array of videos, including
entertainment, education, news, and more, making it a versatile
platform for both individuals and media companies.

8. **Twitter:**
Twitter is a microblogging platform that facilitates real-time
conversations. It is a key player in social media, providing a space
for users to share updates, news, and engage in discussions within a
character limit.

9. **Philippine Daily Inquirer:**

The Philippine Daily Inquirer is a leading daily newspaper in the
Philippines, delivering comprehensive news coverage, analysis, and
features. It serves as a reliable source of information for a diverse
readership.

10. **DZMM Teleradyo:**

DZMM Teleradyo is a radio and television network in the
Philippines. It combines radio broadcasting with live video
streaming, offering news, public affairs, and entertainment
programs to a broad audience.

You may agree with me in saying that media technologies and

Abstraction content, with the effects their circulation might have for audiences,
are shaped by the structure of media industry, which in itself a
product of the broader capitalist political economic system in which
it operates.

Talking of some concepts here, let's begin with concept of system,

of the organization and media industry.

What is a system?

It is a set of interrelated parts that function as a whole to achieve a

common purpose (Daft, 2003). There are two types of systems, the
open system and the closed system. An open system "must interact
with its environment". A closed system, on the other hand, would
not depend on its environment and would be autonomous of it,
which is essentially being "sealed off" from its surroundings. (Daft
2004).

Media organizations as social systems are open systems. As an

entity engaged in disseminating information to the general public
through newspaper, magazine, other publications, radio, television,
cable, cable television, or other medium of mass communication.
Examples of media organizations include: BBC, Disney, and
News Corp. The varied collection of organizations that share the
production, publication and distribution of media texts is termed as
the media industry.

Some common types of media industry are:

Publishing. Publishing books, magazines, newspapers, comics,
references, blogs and research in both paper and digital formats.
Film, Music, Broadcasting, etc.
Who owns the media?

Media ownership

For the sake of simplicity the different types of media ownership

can be summarized thus:

 public or state-owned media

 private broadcasters
  predominantly privately-owned print media
 community media
 media directly owned by political parties

Public/State Media

 Public media use public money to broadcast in the

interests of the public as a whole. They are not partisan
towards any particular party, including the incumbent
ruling party.
 State media are owned by the state (although of course
the state is financed out of public money) and directly
controlled by it.
 Government media are owned by the government of the
day (but still using that same public money) and are
controlled by the government of the day.

Public or state media may be financed out of one or all of three

main sources:

 A license fee paid by television viewers

 The government budget.
 Commercial advertising.

In a few cases this may be supplemented by other

income, such as the sale of programs.

2. Private Broadcasters

Giant multinational corporations run by some of the richest and

most politically powerful men in the world to small, local FM
stations. They do have in common, however, is that they are
owned by private interests - usually a company that seeks to make
a profit.

3. Print Media
The print media display the greatest diversity of all, in both
ownership and content. They range from daily to weekly
newspapers, from news magazines to a range of special interest
publications. Even in situations where the state retains a large
stake in broadcasting, the print media are usually in private hands.

4. Community Media

In many parts of the world, community media are a rapidly

growing phenomenon. Being produced by the community and for
the community.

5. Party Media

Those media that are directly owned and controlled by political

parties. A newspaper that is simply a campaigning sheet for the
party that owns it, not effectively bound by any of the
professional or legal standards that govern the behavior of the
media as a whole.

Structure and Ownership in Media Organizations: Their

Advantages and Disadvantages:

Media Ownership Advantages Disadvantages

1.Private Ownership  Company  Not being
(Ex. Sky) entirely funded by
 the company’s receives the other entity
stock is owned and money earned.  Not a public
traded privately. service
company
2. Public Service  The public The company has
Broadcasting (ex. BBC) fund the the responsibility
 intended for company to please the
public benefit rather public.
than to serve purely
commercial interests.

3. Multinational  Access to  Strict laws

corporation (MNC) has consumers that vary in
facilities and other Increasing different
assets in at least one
country other than its  Accessibility countries.
own. (ex. Apple) to wider  Multinationals
geographical are subject to
Massive
regions allows more laws and
multinational media
them to have a regulations
companies own:
larger amount than other
- Film studios of potential companies.
- TV stations customers and
- Record Labels help them in
- Magazines expanding,
- Newspapers growing at a
- Books faster pace as
- Internet platform compared to
others.

4. Independent  No restrictions  Need to raise

Company- on who, how a start up
 company's business or where an capital and
free from outside entrepreneur to continue
control. should run their business.
(ex. Film Four) their business.

5. Media conglomerate  Helps the  Company is

company in taking over
 Large company that another
diversification
owns several company
therefore
companies that without
company is
provide having any
less vulnerable
products/services in experience
to losses
the media industry. about the
 Includes TV industry and
networks, movie so therefore
studios, theme chances of
mismanageme
parks, online digital
nt increases.
companies,
newspapers, record
labels, publishing
companies,
magazines and
radio stations.
Five major media
conglomerates are:
a. News
Corporation
b. Walt Disney
Company
c. Comcast
d. Viacom
e. Time Warner

7. Horizontal  It helps to  Reduction in

Integration create more company's
 Media company’s money flexibility due
ownership of  Makes the to the fact that
several businesses company more it is now a
of the same value. larger
popular.
 Can own a organization.
magazine, radio,
newspaper,
television and
books.
 Almost all media
companies have
horizontal
integration.
(ex. Disney’s
acquisition of
Pixar)
Disney and Pixar have
similar size and
operation, operating in
the same industry,
combined to form a
stronger company.

8. Vertical Integration  Gives a  Requires big

 Media company investment for
Company owns 100% control physical and
different of all aspects human
business in the of their resources
same chain of business. requirements
production and  They have the
distribution. (ex. ability to
Apple.) dictate exactly
 the quality and
types of
materials that
they want to be
used, how they
want them to
be produced,
and how much
they are sold.
 Gives the
company
100% of the
profits the
company
makes.

9. Cross Media  Receive  Becomes so, big

Divergence much and powerful
 company wider they are
produces two or distribution forced to split
more types of of their up by the
media products. government
(ex. music (ex. The
artists work Microsoft)
with film
companies to
produce
soundtracks for
a film)
10. Cross media
ownership
 Company which
produces two or
more types of
media e. film and
music (film
industry & music
industry)

11. Synergy  Both  More risk

products as
 Simultaneous will be able companies
release of different to gain start
products to boost from profit making
both. increases business
 Synergy can be
used most often by
bigger companies
as the different
elements work
together to promote
linked products
across different
media.
A good example of
synergy is Disney. As
well as releasing a film,
Disney also release
games, clothing, DVDs,
etc. to boost sales.

12. Oligopoly  One effect of

 market is the
dominated by concentration
small number of of media
companies. ownership is
that the global
 When the larger
media market
scale media
companies buy is increasingly
out the more dominated by
smaller-scaled a small
or local number of
companies they conglomerates
become more
powerful within
the market.
 As they
continue to
eliminate
their business
competition thro
ugh buyouts or
forcing them
 out (because
they lack the
resources or
finances) the
companies left
dominate
the media
industry and
create a media
oligopoly.

As information and entertainment become a major part of our

culture, media companies have been creating ways to become more
efficient in reaching viewers and turning a profit. Successful media
companies usually buy out other companies to make them more
powerful, profitable, and able to reach a larger viewing audience.
Media mergers have become more prevalent in recent years, which
has people wondering about the negative effects that could be
caused by media ownership becoming more concentrated. Such
negative effects that could come into play are lack of competition
and diversity as well as biased political views.
5 prominent media mergers that have truly restructured the world of
media:
 The biggest media merger of all time is America
Online which bought control over Time Warner
Incorporated in the year of 2000 on January 10th for a total
of 112 billion dollars.
 The second biggest media merger of all time is AT&T
buying control over Time Warner Incorporated once again
this time in the year of 2016 on October 22nd for a total of
101 billion dollars.
 The third biggest media merger of all time is Charter
Communications buying control over Time Warner
Incorporated for the 3rd time in the year of 2015 on May
26th for a total of 87.4 Billion dollars.
 The fourth largest media merger of all time is Walt Disney
Company buying control over Twenty First Century
Fox Incorporated the sector of their entertainment business
in the year of 2017 on December 14th for a total of 84.8
Billion dollars.
 The fifth largest media merger of all time is AT&T buying
control over direcTV in the year of 2014 on May 18th for a
 total of 66.5 Billion dollars.

Application What do you think?

A. Take a minute to observe the prevalence of media

communications around you. What challenges do these
industries face? You may consider the role of the
government, the pandemic caused by COVID 19, or any
other reasons that confronts the system. Enumerate at least
10 industries with their specific issues that can be of a threat
to media and communication.
1. **Traditional Print Media (Newspapers and Magazines):**
- Challenge:Declining Print Circulation
- Reason: Shift to Digital Consumption, Decline in Print
Advertising

2. **Broadcast Television:**
- Challenge:Cord-Cutting and Streaming Competition
- Reason: Growing Popularity of Streaming Services,
Changing Viewer Habits

3. **Radio Broadcasting:**
- Challenge: Audience Fragmentation
- Reason: Rise of Podcasts, Streaming Services, and Digital
Radio

4. **Cable Television:**
- Challenge:Cord-Cutting and High Subscription Costs
- Reason: Increased Availability of Affordable Streaming
Options

5. **Social Media Platforms:**

- Challenge:Misinformation and Content Moderation
- Reason: Spread of Fake News, Calls for Stricter Content
Policies

6. **News Websites and Online Portals:**

- Challenge: Ad Revenue Dependence
- Reason: Ad Blockers, Ad Revenue Challenges in the Digital
Space

7. **Film Industry:**
- Challenge Disruption in Film Distribution
- Reason Impact of Streaming Services on Box Office
 Revenue

8. **Advertising Agencies:**
- Challenge Budget Cuts and Ad Spending Reduction
- Reason Economic Downturn, Shifting Marketing Strategies

9. **Public Relations (PR) Firms:**

- Challenge Reputation Management Amid Crisis
- Reason Rapid Spread of Information, Social Media
Amplification

10. **Telecommunications Industry (Internet Service

Providers):**
- Challenge Net Neutrality and Access Concerns
- Reason Regulatory Changes, Ensuring Equitable Internet
Access

B. As a communication student, reflect on the role of media

communication owners with respect to the thrusts and
priorities of the government in the context of rural and urban
development. Contemplate on how media industries work
hand in hand with other private and government institutions
to push for holistic development.
Owners of media communication play an important role in both
rural and urban contexts, acting as powerful conduits in
furthering the government’s developmental goals. Their
responsibilities go beyond simply disseminating information;
they also include actively supporting government programmes,
closing information gaps, strengthening local communities, and
protecting social and cultural elements. The media may help
raise awareness of rural infrastructure projects and agricultural
changes in rural areas, and it can help urban environments
engage with complex urban development plans. By working
with numerous organisations, encouraging community pride,
and presenting multiple cultural identities, media owners help to
holistic development. This cooperative interaction between
communities, the government, and the media emphasises how
crucial media communication is to creating narratives and
building an informed, involved, and empowered society.

Closure Congratulations! You just have succeeded another lesson. In the

next section, more issues connecting media and economics will be
tackled. Brace for more learning!