Question

The four largest media rivals in the U.S. are large enough to compete on a global scale: Time Warner, Viacom, Comcast and Disney. Using your web browser, explore each company's web site and then answer the following questions:

1. Each of these media companies has a variety of media holdings but may concentrate on one kind (books, movies, television, print) over another. Compare and contrast their holdings.
2. Does any company seem to have "cornered the marketing” in a given area?
3. These companies have penetrated almost every media market in one form or another. Would you consider their vast ownership a media monopoly? Why or why not?
4. From the companies' standpoints, what is the positive aspect of being so diversified?

Answer 1

1. Each of these media companies has a variety of media holdings but may concentrate on one kind (books, movies, television, print) over another. Compare and contrast their holdings.- See attached image
2. Does any company seem to have "cornered the marketing” in a given area? - You can definitely claim that Disney has cornered marketing as far as amusement parks and Marvel media entertainment is concerned. It is head and shoulder above to its nearest competitors in that domain.
3. These companies have penetrated almost every media market in one form or another. Would you consider their vast ownership a media monopoly?Why or why not? - No, Because none of these companies own more than 50% in the media market. All together they can be considered as Oligopoly but not monopoly.
4. From the companies' standpoints, what is the positive aspect of being so diversified? - Positive aspects are two folds - a) They have mitigated their risk by over reliance on one domain as consumer behaviour rapidly changes in media industry. b) Competition forces them to be present in every domain possible as it is very hard to predict any future consumer trends. Therefore, being present in all the domains hedges their risk of losing out in future.