Role of the United States Government in the Global Expansion of Us Media Industries

1478 Words Feb 4th, 2013 6 Pages
Global Expansion of US Media Industries 1


by Lunlalit Niyomtas Student ID : 14060193

Global Media 2MED7H3 Professor Daya Thussu

School of Media, Arts and Design University of Westminster

Global Expansion of US Media Industries 2

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
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This allowed media businesses to undertake both horizontal and vertical integration. Horizontal integration is where a business diversifies its operation by owning subsidiaries of different sectors (Deloitte 2012). For instance, Time Warner is known print media, news networks and movie productions houses. On the other hand, vertical integration can be defined as businesses owning a business with one main stream of business or practice. Thus, loosening of cross ownership restrictions gave room for business to expand to different units and to the global market. A new approach to media business that emerged was the convergence of business. Convergence of business is where two, proportionately big firms, join to share audience as well as brand names (McChesney 2001). A notable case of convergence in the U.S. media industry was the convergence between AOL and Time Warner. While other convergences have also been experienced, the economic results have been mixed. The AOL merger experienced difficult economic conditions that they later preferred to de-converge. In all loosen restrictions on laws has provided for media to explore all sorts of business arrangement. Zero Government Intervention The United States government has always taken pride in itself as one of the most liberal government in the world. The term liberal has been used in the sense that the government adopts a hands-off policy towards the content and the manner in which media houses are run. To this end, the

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