ROLE OF THE UNITED STATES GOVERNMENT IN THE GLOBAL EXPANSION OF US MEDIA INDUSTRIES
by Lunlalit Niyomtas Student ID : 14060193
Global Media 2MED7H3 Professor Daya Thussu
School of Media, Arts and Design University of Westminster
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Introduction In the recent past, we cannot deny that the media industry has experienced monumental growth both in terms of revenues and global expansion. Like other businesses, such as banking and manufacturing, the media business has enjoyed globalized operations to expand and grow, becoming one of the biggest conglomerates in the world. World media has proactively employed information technology and advancement in communication to expand their operations spanning several nations and continents. The news sector of world media seems to have captured most audience. Big corporations such as Cable News Network (CNN), Fox News, British Broadcasting Corporation (BBC) and CBS dominate the news corporations with a worldwide reach. In the same regard, entertainment media, such as movies and television shows have also experienced immense growth. Companies from the U.S., for instance Walt Disney, Time Warner, News Corporation and New York Times Company are some of the biggest companies in world media market. U.S. firms have been able to pose formidable media entities in print and digital media services. They have also played an active role in asserting the views of the West with respect to the world issues and, therefore, becoming key players in the global media industry. Thus, for such commendable growth to be witnessed, the United States government must have, in one way or another, assisted these firms to grow and expand to the global market. While the U.S. government has always maintained zero interference in media, such policy is by itself is an active role. This essay will discusses the role of the United States government in assisting U.S. firms expand to the international market.
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Neoliberal Policies of the 1980s One of the most profound roles of the government in allowing growth in media and globalization is the neoliberal policies and stances adopted in the 1980s. The U.S. government with other likeminded governments, such as the United Kingdom, adopted neoliberal policies in the media industry. The term neoliberal is a multifaceted ideology with different meanings under dissimilar circumstances. However, Pickard (2007) argues that the term simply refers to efforts towards privatization, liberalization, deregulation and globalization of an industry. The U.S. government sought to allow the media industry propelling itself as guided by economics and other drivers of business. Privatization Drive Neoliberal polices first allowed and encouraged the privatization of media companies. With regard to this, private investors took up media operations an introduced new ways of running such businesses. Efficiency and competition became the norm and advertising transformed into a target of the competition. Similarly, foreign investors accepted the lure of privately run media corporations and thus created domestic competition that was unrivalled elsewhere in the world. Such competition led to mergers and buyouts; as a result, a few giants were left to compete in the market. Soon, the expansion in the U.S. was only possible in slight increments and, hence, expansion to the global market was paramount. Such magnificent growth in the United States motivated other nations, especially in the European Union, adopt similar policies (McChesney 2001). Open and competitive market gave the U.S. conglomerates an opportunity to invest in other countries. Today, the biggest media firms in the world are the American firms that expanded after privatizations of businesses.
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Loosening of Restrictions on Ownership Structures...