Emerging Trends: Media Conglomerates Enter a New Phase

By Don Monkerud, Santa Cruz Chapter

Most writers are keenly aware of the conglomeration of the media. In 1981, 46 companies controlled most of the book, magazine, newspaper, movie and TV industries. By 1989, this number had shrunk to 25 and, by 1997, a mere seven giant companies had virtually cornered the vast media markets of the United States.

How are writers to read these signs of change? What currents are affecting their livelihoods and what adjustments can they make to prosper in unsteady times? Interviews with a number of industry insiders and consultants reveal some emerging trends, and a number of suggestions that may prove helpful to writers.

According to Mike Shatzkin, founder of Idea Logical Co. and a consultant to the book industry, in 2002 "the Big Six" dominated consumer publishing: Random House, Pearson, von Holtzbrinck, AOL Time-Warner, HarperCollins and Simon & Schuster. Additionally, two retail chains, Borders and Barnes & Noble, and a few smaller chains, such as Crown Books, Books-a-Million and Hastings, dominated bookstore sales.

"There's little doubt that the big guys are publishing fewer books than their component parts did ten years ago, and they are paying more for them," Shatzkin says. "A small number of writers are benefiting by getting larger advances but, in general, most books are harder to get published by a credible publisher."

Although some view the concentration of economic resources in a few corporate hands as creating a domination of information and ideas, the book publishing divisions are proving to be a burden to their parent media corporations.

"We are seeing 'disaggregation' of the publishing industry—it's fragmentation time," says Peter Booth Wiley, San Francisco author and publisher. "Media conglomerates built empires through acquisitions based on the false premise that the Web would deliver consumer products directly to the customer."

From the 1920s to the1980s, profit margins for the publishing industry averaged four percent. The new multimedia corporate owners demanded returns of 12 to 15 percent, similar to those of their other subsidiaries of newspapers, cable television and film. Expecting higher returns, corporations paid huge premiums for publishing assets and are now mired in debt. Financial wizards from Wall Street discovered they had no understanding of how to manage a publishing company, and now are selling their acquisitions.

New Owners, New Opportunities?

New book publishing owners won't provide more opportunities for writers to be published. Pat Holt, former book editor for the San Francisco Chronicle and Internet columnist for HoltUncensored.com, sees a decades-long trend towards "commercialism" in book publishing. An emphasis on business and bottom-line profits has led to the integration of editorial and marketing functions, which results in a "thinning out of literature." Serious books—those on history, science, biography, essays, translations and serious novels—are pushed aside for best-sellers.

"The problem for the writer is that everything is moving at a very fast pace and the demand for money is higher than ever," Holt says. "Acquisitions editors rarely have time to read the manuscripts they buy. They are in a rush to buy more books to feed the big machine, which is the stockholder. The reader and the writer lose out because we are not getting a good flow of quality books."

Ben Bagdikian, author of Media Monopoly and professor of journalism at University of California-Berkeley, echoes this criticism. He points out that conglomeration reduces the number of opportunities for writers because publishers concentrate on big mass market books they can recycle in other forms, such as movies and CDs.

"Big conglomerates deal with big chain sellers for promotion and space on the best tables in bookstores," Bagdikian explains. "An increased emphasis on mass market sales limits the visibility of the majority of writers. Writers receive less exposure to a national audience for mid-list books."

An increase in small publishers and self-publishing presents more opportunities for writers, but Bagdikian warns that it comes at a price. Pressure for writers to learn the business and marketing side of publishing means less attention to writing. "The burden on a writer to become a publisher as well as a writer is not an advantage to good writing on a wide range of subjects," Bagdikian says.

Despite the difficult climate, Peter Booth Wiley sees the healthy small press scene as a boon for writers. Small presses have mastered the problem of marketing and sales in the last 15 years. Ironically, the demand for chain bookstore inventory drives them to stock more books from independent publishers.

"I advise writers to study the industry," Wiley says. "Don't be infatuated with the big New York publishing houses. There are lots of ways to get published. Develop a productive relationship with editors at a small publisher."

Journalism

While book-publishing alternatives create opportunities for book writers, journalists face a more limited job sphere. Observers expect conglomerates to focus their acquisition sights on advertising-driven media, such as newspapers, radio and TV, especially with the loosening of FCC rules on "cross-ownership" that many expect to see in the spring. "Cross-media ownership" will allow companies to cover different media in the same market and share the costs.

"'Sharing content' is the buzzword, and it doesn't bode well for journalists," says Aaron J. Moore, author of "Who Owns What" for the Columbia Journaism Review. At the Chicago Tribune, the same reporter covers radio, TV and the newspaper. One journalist can do the job of three. They make money, but the problem becomes a loss of jobs."

Moore believes that the Internet is "the trump card" for journalists. While conceding that Internet stories and ideas don't have mass circulation, he contends, "If you put something worthwhile on the Internet, people will find it." Matt Drudge and IwantMedia.com are good examples. While people complain about media conglomeration, Moore points out that consumers want "one-stop shopping," such as CNN for news and ESPN for sports scores. In this approach, consumers have the power to decide where to spend their dollars.

Moore's advice on how writers can respond to this challenge includes knowing the Internet thoroughly. He suggests that writers specialize. It's not enough to be a business writer anymore—one must specialize in financial markets, retirement planning or the media, as Moore does. Becoming established as an expert brings news sources to the journalist when their specialty is needed.

The multi-billion dollar market for media recklessly lurches on as those in the industry cope with continual changes. As writers, we complain about unfairness and the lack of opportunity. Unfortunately, complaints change nothing. As union members, we can pull together to understand these changes and find ways of collective action to address the industry. As individual writers, we can adopt strategies to deal with the change and continue with our true love—writing.

About the Author: Don Monkerud is the author of Twister Country and an editor of Free Land: Free Love: Tales of a Wilderness Commune. His most recent book, Italy Uncensored, A Travelogue with Politics and Religion was released in 2002.