The consolidation of media according to regional basis has many impacts on the grounds of ethics and law. The most critical legal impact will be in regards to the existing contracts between companies and their media houses. With two advertising media firms promoting competing brands, the issue of preference given to any one industry will arise in the case of merger between the two media companies.
Another issue that will arise with international industries in the case of consolidation across geographical areas that certain consolidated groups can become a sort of monopoly and can charge the international companies much higher rates than the previous times. This sort of monopoly can make the advertising costs and factors very expensive for the international industries, especially when the media consolidation group decides to promote the home company that is making the same products as that of the international companies.
This can result in legal battles between the international company and the media group. Even the case that the international company wins on the basis of legal grounds, yet the relationship between the advertising group and the international company is destroyed and can never rebuild. The advent of going on negative grounds with the media group can make the products of the international company literally disappear from the minds of the consumer, as without proper media coverage, the products and their remembrance from the consumers minds will die down.
Also with the case of negative battle with the media group, the media can make the company get a bad perception in the minds of the consumer, with the negative advertising, resulting in the company getting a hated status in the region dominated by the media group. Now if we consider the ethical implications of the consolidation of media group, the most critical one will be the ethical issue of monopoly. With the case of monopoly, a certain group gets complete domination over the region.
The customer, or in this particular case, the international company, will have very few choices left for its advertising partners. Even with a 45% consolidation, it creates a sort of huge group that can easily create a sort of virtual monopoly over the region, thus leaving only weak competitors in the media industry for the international industries. Another ethical issue with the media consolidation group can be its actions on the basis of its power. As there is no other equivalent player in the media industry, it gives the media group a complete license to do what the please, without any regard for its users, i.
e. the international industries buying advertising space. The possibility of consolidation of media firms up to 45% with respect to geographic area will be harmful for international industries as this would create a sort of monopoly of media group. It will be much more difficult for the international industries to cope with the power of the consolidated media group, as the media group can increase their prices, change their policies or give another company (either local or international) more preference then our international industry.
Further more in the worst case scenario there could even start a negative relation ship between the international industries and the media group, which could really hurt the international industries if the media group does not adverse their products at all or starts creating a bad perception of the international industry and their products in front of the consumers. Thus we can clearly see that such a consolidation of media can make the operation of the international industries very risky and potentially harmful.
Hence my proposed action would be not to consolidate the media group with respect to geographic area, even if it is 45%as it is still a monopoly and a very risky course of action for the international industries. Even in the case that there is no other option but to allow media consolidation, then certain rules and regulations should be developed to control the power of media and to avoid it to become a monopoly. Only then the international industry company can survive peacefully in the markets.
1. Shah, Anup. (2009, January 2). Media conglomerates, mergers, concentration of ownership. Retrieved from http://www. globalissues. org/article/159/media-conglomerates-mergers-concentration-of-ownership 2. Rockler-Gladen, Naomi. (2008, may 5). Media consolidation & ownership. Retrieved from http://medialiteracy. suite101. com/article. cfm/media_consolidation_ownership 3. Goodman, Amy, & Goodman, David. (2005, April 3). Why Media ownership matters. Seattle Times,