Lecture 6 (02/04/2012) "Commercial Media"

What is commercial media?

It is....

- Profit driven media production
- Not funded by the government, or by a license
- Survives or fails based on business success
- Main business is generating audience
- Creates audiences to make a profit through selling or advertising

Major players in commercial media include:

- Fairfax Media
- News Limited
- Nine
- APN
- Ten

And other players....

- Austar
- Optus
- Telstra
- Macquarie

Each of these major players produce other types and companies of mass media. For example, Fairfax Media have produced The Sydney Morning Herald, The Age, Financial Review... and even the likes of RSVP.com!

Form and function of commercial media:

FORM: --> Commercial: - Subscription - Sponsored - SubsidisedFUNCTION: --> Commercial, Propaganda, Social


Commercial Media's Role in Society:

The big question is: can commercial media deliver on both commercial (profit) and social (public trust) function? or is it just all about money?

And of course, the media has social responsibilities in a democratic society...

They are:
- To report a truthful and comprehensive account of a day's events with an appropriate context that gives it meaning
- A forum for the exchange of criticism, observation and comment
- Presentation of the representation of groups of society
- Presentation and clarification of the morals and values of these groups in society
- Access to the day's intelligence

Of course, there are factors that keep commercial media in check:

These are:
- Formal state requirements
- Legal prescription
- State oversight
- Statutory
- Voluntary

The public sphere: (Jurgen Habermas)
A space between commerce and government where people can debate freely and form public opinion

COMMERCIAL                                                               SOCIAL

- Advertising sales         ETHICAL WALL    - Editorial


New controls on social media:
1. Government agency regulating content
2. State press subsidies
3. Licensed journalism (countries such as East Timor)

Commercial media is often described as corrupt, and that it lacks quality...

Quote: "In this regard, one thing stands out above all others - the view that the very nature of the commercial equates to a corruption of the social. In other words, as media becomes more commercial, they do so at the expensive of their social function. This is seen as a zero-sum game. Profits come before quality."
- Professor Michael Bromley, SJC 2009

Challenges for commercial media:

Example: Advertising revenue for broadcast media is down and continues to fall

= Loss of revenue = less investment = less money for quality production
= Less original content (repeats of US sitcoms, more reality TV)

The future of commercial media:

- Bigger, better, greater quality content... Audience will have to pay for quality

- Greater competition, compelling content

- Move existing customers to digital

- Paywalls on internet sites

After attending this lecture, I had a million thoughts racing through my mind... Mostly concerning the future of our mass media. Could it be that our only source to obtain news could be the Internet? Is the Internet really the future of communications?