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Corporate Media Consolidation, Social Responsibility and Human Rights

Jim Carney
Executive Director/Bronxnet

June 29th, 2000 was an unusual day in the history of corporate mega-mergers. Based upon objections from the United States Justice Department and the European Union, MCI Worldcom and Sprint withdrew their proposal to merge the two media conglomerates into the second largest telephone related telecommunications corporation in the world – at least for the time being In a business environment where the corporate scorecards are filled-in in pencil (but the numbers are astronomical) the derailing of a corporate juggernaut such as the proposed MCI/Sprint merger is quickly being applauded by consumer rights advocates and regulators on both sides of the Atlantic and possibly beyond. Thanks to concerns of a reduction in overall competition and virtually guaranteed higher rates for consumers, Washington and the EU made it clear that they would go to extremes to stop the marriage of the two giants. This comes on the heels of numerous mega-mergers which are announced on almost a daily basis. The defeat (or at least delay) of the MCI Worldcom/Sprint deal is something of an exception.

Consumer advocates and smaller competitors alike have decried the evils that are certain to arise from the creation of such behemoths. Certainly the experience of mergers following the US Telecommunications Act of 1998 has resulted in less consumer choice and higher prices. But there is another undercurrent, which runs through all the levels of these mergers that can have a subtle but devastating effect. This undercurrent is the impact consolidation has upon corporate culture’s approach to human rights, community affairs and even employee relations.

A useful illustration of the potential to advance - and the risk to backslide - is the CBS case. Once known as the "Tiffany Network" and the home to legendary reporters and commentators such as Walter Cronkite, CBS News consistently set the journalistic standard for the industry. This tradition was begun by journalists who had migrated from radio and newspapers to the exciting new technology of television to again provide the leadership and motivation to establish bureaus in far-flung corners of the globe and to pursue journalistic excellence. The independence of the CBS News Division was effectively crushed when the network was acquired by the Loews corporation where leadership was less interested in excellence and more interested in revenue. The slide continued - some would argue accelerated - in 1995 when the aforementioned Westinghouse Corporation acquired CBS. Soon afterward, CBS management (much of it fresh from Westinghouse headquarters in Pittsburgh) downsized newsrooms, shut down community affairs offices at local stations and discontinued most community affairs programming. On the network level, bureaus were closed and staffs laid-off or consolidated. Reports from most areas of the world were soon coming from free-lance "stringer" reporters who work on a pay-per-story basis, and on local news organizations where integrity is unpredictable. The psychological and physical distance of a correspondent based in Tokyo relying upon wire service dispatches and stringers to report on an atrocity committed in Indonesia or Malaysia, dilutes and often distorts the story. Furthermore, without pictures to feed a visually hungry viewership, the likelihood of the story being reported is diminished further. As a result, the spiral feeds on itself.

Most recently we witnessed the merger of CBS with media giant Viacom, complete with its cable networks such as MTV and Nickelodeon, Paramount Pictures Studio and Syndication business, and Blockbuster Video. We are already witnessing the brand of synergy this new conglomerate is advancing. In an attempt to win the coveted youth market which has stubbornly shunned the network for years, Viacom expanded upon the success of "reality programming" pioneered by MTV with the series "Survivor". The limited series was much promoted on MTV, VH1, Infinity Radio Stations from the CBS side, and introduced the culinary delights of roasted rat. The new follow-up voyeuristic series called "Big Brother" soon followed. The nature and the content of these programs are less disturbing than the ancillary promotion that is being conducted through CBS News (now a division of CBS Entertainment). Each morning following an episode of "Survivor" and following "Big Brother" a significant portion of the CBS Morning News features interviews with host Bryant Gumbel and participants from the "reality programs." Even more disturbing - the morning news anchor has been reporting from within the closed set of "Big Brother."

Perhaps the most disturbing illustration of the new Viacom’s commitment to social responsibility is a simple word search of the company’s web site. A search for the words "social responsibility" results in one "hit" – a press release announcing the move of the "socially responsible" teen television series "Sabrina The Teenage Witch" from ABC to the WB Network.

The decrease in credible reporting from remote areas of the world, as well as impoverished ghettos and mountain hamlets in our own country, narrows our view of the rest of the world. While more of the world is now able to learn about and witness the diversity of the planet through satellite and wireless technologies, the sources of programming are becoming fewer and more myopic in their presentations. MSNBC and SKY News can now be seen in the deepest jungles of South America and the heart of China, but the message is delivered from New York City, London or a handful of other "media capitals".

As nationalism is replaced by economic alliances, and as advances in technology outpace any efforts of regulation or even allow thoughtful consideration - hope still forces its way through history. While basic human nature may not have changed over the last century, our ability to become aware of our own plights and the plights of our fellow man has exploded. Furthermore, through technology we increasingly have the capacity to act to improve our collective plight. All it takes is the will to do so.

 

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